Dion Hinchcliffe, of the Dachis Group, presents a great diagram depicting the rise of social business from the ashes of the corporate model. He attributes this evolution to the “Shirky Principal, ” When markets change and the economic rules evolve — as they always do — companies that have an excessively vested interest in the status quo don’t bend or adapt to new ways of doing things. Instead, they usually break. This has been called the Shirky Principle, namely that “institutions will try to preserve the problem to which they are the solution.” When you have a global business environment … Continue reading From the Ashes of the Smoldering Corporate Business Model, The Rise of the Social Business Model: A Diagram
As reported in the October 10, 2011 L.A. Times, Governor Brown has signed California Assemblyman Jared Huffman’s, Bill AB 361 into law, allowing B Corporation to join Hawaii, Maryland, New Jersey, Vermont and Virginia, in legally operating in the State of California. Without this legal protection, says B Lab Co-Founder Jay Coen Gilbert, by prioritizing social (environmental and other sustainable) outcomes, California B Corporations were operating in what could have been considered opposition to the fiduciary duty to “maximize value to shareholders even if that comes at the expense of workers or the community or the environment.” Gilbert also notes … Continue reading Brown Signs Law for B Corp’s in California…Will Venture Capital Follow?
“The findings are detailed in Fightback Britain, a report based on the largest analysis of the social enterprise sector in the UK, supported by the Co-operative Bank. It reveals that social enterprises, which exist to benefit society and reinvest their profits, are twice as likely as mainstream businesses to have reported growth in the last year. They are also more likely to be led by women, young people, and those from minority ethnic groups. Research uncovers ‘start-up explosion’ in Britain’s most deprived communities – highlights from the report include: 39% of all social enterprises are based and working in the most deprived communities … Continue reading New Business in the UK is Increasingly Social
The Association for Enterprise Opportunity (AEO), the “voice of micro-enterprise development” has released a report revealing the potential power of the micro-enterprise sector within the U.S. economy. Simply titled “One in Three,” it provides the following incredible statistic: if 1 in 3 micro-enterprises in the U.S. hired 1 employee, “the U.S. economy would reach full employment.” Here are three more amazing facts from the report: Micro businesses represent more than 80 percent of all businesses in the United States In 2010, more Americans became entrepreneurs than any time in the last 15 years A $5K increase in revenues per … Continue reading Could Social Enterprise Be the Next Growth Sector in the US Economy?
El Puente In 1997, in the aftermath of NAFTA and its displacement, trauma and impact on women and workers, La Mujer Obrera established El Puente Community Development Corporation, to create economic opportunity with/for displaced women workers and other low income community members, especially those living and working in the South Central barrio, the former Garment District of El Paso. El Puente’s mission is true to its name. Virtually unparalleled in the country as a grassroots Mexican immigrant women’s organization involved in development tied to empowerment. To generate economic opportunity, El Puente focuses on: Job Creation Micro-enterprise Development Social Enterprises Small … Continue reading El Puente: Making the Point that Women are Hidden Casualties of NAFTA
Albina Ruiz turns trash into jobs in Peru… » Albina Ruiz started worrying about health and environmental problems caused by garbage in Peru when she was a student studying industrial engineering. After writing her thesis, she came up with an idea for a new community-managed system of waste collection that she hoped would serve as a model for urban and rural communities around Peru. Ruiz’s idea called for micro-entrepreneurs — small business people chosen from the community — to take charge of collecting and processing the garbage, at once addressing another serious problem in the community: unemployment. She helped these businesses … Continue reading In these “Healthy Cities” Trash = Jobs