Social Enterprise
The Benefits Of Social Business Enterprises
May 17, 2012 | 
Author Social business enterprise refers to a company that does not focus on giving dividends or maximizes on profits. Its main objective is to meet a given social need. Any money that the company gets through its day to day activities or through funding is used to expand research findings and to provide solutions to the problem that the company seeks to address. Investors who put their money in such companies, as earlier mentioned, are not entitled to any dividends, but instead the returns on the investments are recouped and ploughed back into the company.
Some of the social needs that such companies address are healthcare for the less fortunate people in society, financial services for those who cannot afford, nutrition for the not-so-well fed individuals and also providing safe drinking water for people living in unhygienic and unsafe places. The sustainability of social business enterprises clearly indicates that the company is in business and doing well.
The key requirements for these companies have been captured in three main points. The first one being social responsibility. For a company to qualify as a social business enterprise, it must be prepared to meet a specific social goal, by identifying a need to be addresses and putting up a plan on how to meet the need. The second requirement states that the company must be based on a non-profit distribution. This means that investors must not take any dividends or share in any profits.
Thirdly, the company must have the poor people in mind. Infact, it could be owned by the poor. This ensures that the objectives of the company are tailored accordingly and they are specific to where the need bites most, as the owners express the need.
Understanding Social Entrepreneurship
What is Social Entrepreneurship?
Essentially, social entrepreneurs identify public problems and apply business acumen to resolve them. Instead of using a venture solely to make a profit, they aim at simultaneously impacting a society and regulating positive change. The success of such an endeavour is, therefore, measured not just on the basis of balance sheets, but on the effect it has had on a community.
Social entrepreneurship demands the same confidence, motivation and innovation as any other business, but in a manner that prioritises social development and the simultaneous creation of social and economic values. Hence, more than making a profit, it amounts to executing social change by means of unique solutions that help a community overcome established obstacles.
By definition, most social entrepreneurs take on problems that are ideally in the domain of government concern. Instead of waiting around for problems to be solved or brushing them under the carpet as many governments and societies are wont to do, they see them as opportunities to effect positive change. Social entrepreneurship is therefore all about combining a vision for a brighter future with the realization that, in order to achieve long-term goals, drastic effort and creative solutions are called for.
Like any other business venture, social entrepreneurship programmes cannot be isolated exercises. Most entrepreneurs, for instance, promote a non-profit organisation in the hope that other individuals and agencies will move in to support the cause and help multiply its benefits across larger sections of society. The extent of success of such endeavours is often based on the amount of collaboration and grassroots involvement they are able to generate.
Furthermore, and just like business ventures, social entrepreneurship projects depend on some degree of risk-taking. Only, in this case, the risk is not limited to financial security but involves social activism and passion. In this context, social entrepreneurship activities may appear to be incredibly perilous, but the risks pay off many times more in terms of their benefits to society.
The Impact on Society
Social entrepreneurship is as important for a growing society as business entrepreneurship is for a developing economy. They are both critical for sustainable development and accelerated inclusive growth.
The significance of their impact on societies can be gauged from the contributions of some eminent social entrepreneurs who are feted for positively and permanently impacting our world. In 19th Century United States, Susan B Anthony led the fight for women’s suffrage and helped establish equal rights for them. In 20th Century India, Vinoba Bhave founded the Land Gift Movement that caused the redistribution of more than 700,000 acres of land to the country’s poorest. Italian physician Maria Montessori (1870 – 1952) determined deficiencies in the early educational system and developed a new approach that continues to be relevant across the world today. Before her, compatriot Florence Nightingale helped establish the first school for nurses and fought to improve hospital conditions. Birth control activist Margaret Sanger encouraged family planning around the world with her Planned Parenthood Federation of America. These and other social entrepreneurs have made extraordinary contributions in shaping the modern world.
Examples of Nigerian Social Entrepreneurship
It is hardly surprising that social entrepreneurship has tremendous relevance for Nigeria, a country of paradoxical economic realities, with booming oil revenues on one hand and decrepit poverty on the other. Civil strife, political turmoil and religious upheavals have all contributed to turning this resource-rich nation of 148 million people into a landscape of economic malfunction and some of the worst human development indicators for the entire African continent. The return of democracy at the end of the last century and the installation of progressive policies have started the process of redirected growth through more sustainable means. Today, Nigeria is seen as having stepped back from the abyss of economic and social disaster and on the brink of a resurgence projected to take the second largest economy in Africa to the top twenty economies of the world by 2020.
A host of Nigerian social entrepreneurs are actively helping achieve this objective by alleviating social ills and driving positive change through innovative solutions.
Durojaiye Isaac instituted DMT Mobile Toilets in Lagos in 1999, an organization that strives to make a difference to the economic and environmental health of Nigeria. His social enterprise produces, hires out and maintains portable toilets, promoting sanitation and creating job opportunities for hundreds of local youths. For his innovative contributions, Isaac was awarded the prestigious Schwab Foundation’s Social Entrepreneur of the Year award for 2005.
Joachim Ezeji is the founder of Rural Africa Water Development Project (RAWDP), an ambitious programme dedicated to improving access to potable water in remote Nigerian communities. Founded in 2000, the project continues to train new members in an effort to develop community water infrastructure across the tropical country. Since its inception, RAWDP has given millions of Nigerians access to clean drinking water.
Ada Onyejike launched the Girl Child Art Foundation (GCAF) which promotes education and social change by empowering young women through performance arts and creative writing. This pioneering enterprise focuses on issues like child marriage, trafficking and polygamy through art, music and dance in and effort to engineer progressive change in Nigerian society. Beginning as a small volunteer operation in 2000, Onyejike’s foundation currently reaches thousands of women in the age group 8-25 in hundreds of communities across the country.
Cletus Olebune operates an outfit that tells the world about events occurring in Africa in an effort to boost tourism and open up the continent to the world. This passionate social entrepreneur uses the power of the written word to help Nigerians in diverse aspects of their lives, imparting knowledge and education to boost productive engagements and improve the country’s standing in world rankings.
Gbenga Uriel Ogunjimi, a social entrepreneurship pioneer, works to promote employment opportunities for Nigerian youths. He runs Landmark Internship International, which uses the Internet to connect with social enterprises around the world in need of local talent, as a means of meeting the nation’s social and economic challenges.
Rochas Okorocha is a rich entrepreneur. He established the Rochas Foundation which was borne out of a simple commitment to help the less privileged and poorest in the society. The foundation also focuses on breaking the cycle of poverty so that children can become self sufficient, contributing members of their societies.
These are just a few examples of social entrepreneurs and their impact on Nigeria’s holistic growth prospects. Besides generating employment, innovative goods and services and fostering equitable growth in society, they help generate the much needed social capital that is crucial for Nigeria’s emergence as a worthwhile economic powerhouse.
Social Enterprise and Its Benefits
If you thought social enterprises are only focused on social or environmental aims, think again. Besides the good work, such enterprises are also involved in the generation of revenue for further sustainability practices. As far as the management of ‘triple bottom line’ is concerned, social enterprise also face challenges similar to a private firm. However, bringing a positive change in the society remains the main focus for any non-profit organization.
Social enterprises usually hire local people. Whether an individual is disabled, remained unemployed for a long term or belongs to a minority group, such enterprises bring a ray of hope in many lives. There are many people who leave their high profile jobs in multinational companies to join a social enterprise. The fact that it offers a platform where people can make a difference with the help of a flexible work environment has encouraged many people to take this step. These enterprises work on the concept of combining social goals and values with commercial practices.
Companies that follow socially responsible practices cannot be considered a social enterprise. However, these enterprises have benefited with the sudden growth of the CSR movement. Governments all over the world need to realize the benefits of encouraging the growth of social enterprises in the economy. The profit made by social enterprises is invested back into development of the community and environmental sustainability. More awareness should be spread so that the consumers start buying more product and services that contribute to the welfare of the local communities.
Even though traditional non-profit investment firms don’t prefer investing in social enterprises, long term benefits of this sector can’t be avoided. It not only helps in the generation of sustainable income sources and diversifies revenue streams but also helps in cutting down the dependency on donors. More social entrepreneurs are required who can recognize social problems and create successful ventures for bringing social change.
Business is not a Social Giveaway, an alternative view
Make a profit and leave social programs to the Government.
Being in businesses serves one purpose and one purpose only, and that is to turn a profit for its owners or stake holders. People who begrudge businesses for making a profit don’t fully understand their purpose. In a capitalistic system such as that found in the western world, profit is the soul purpose of any business endeavor. Small businesses are no different, people who go into business for themselves, usually do so for the income. When all is said and done, income is after all, the root of the businesses importance.
Social endeavors on the other hand are driven by the need to provide a service. Some social businesses are for profit and some are not. Many times the proprietors take a salary while the business itself is self sustaining but does not occur a profit. Even though an enterprise may be a social directed business, it still operates under the same financial pressures as a profit driven business. Its aim may be to provide a clear social benefit but it must adhere to more strict rules and regulations than other businesses. The internal structuring may include volunteers and solicited donations. Accounting is strict and reporting to government agencies may be more scrutinized. Any profits occurred are mostly reinvested, or used to support its societal direction, rather than being paid to the owners of the business.
If you are community minded, you may want to start a business that isn’t just for profit but also has a social function. For example, you might want to provide a service for injured war veterans , or help improve conditions for disadvantaged children.
Here are some Advantages of starting a social directed business.
You get a feeling of self-worth while earning a living.
The community and your beneficiaries benefit as your business grows and matures.
Customers may be willing to become involved in the business because it supports a good cause.
It could be easier to attract and motivate employees and volunteers to share in your social aims.
You could possibly qualify for a government or church based grant and raise funds from people or organizations who share your social aspirations.
Here are some Disadvantages of starting a social directed business.
Sometimes your social aims may get in the way of making progressive decisions.
You may have to make difficult choices as to how much income to make.
If there is any surplus, profits it is expected to be put back into the business or go toward supporting the cause.
Why people change careers or start their own business
A change in conditions like loss of job or sudden need for more money.
A major life event can prompt or even enable you to start your business.
An inheritance or other dramatic personal event may provide the funding to kick-start you into action.
Loss of job or job stagnation could mean that now it is time to take the big step.
What are the Advantages of going into business?
It just might be an opportunity to start over or do something you’ve always wanted to do.
You have a chance to prove yourself.
You get to choose your future
You can make as much as you are determined to make. .
Even though you’re never your own boss you can have the flexibility of working around family commitments.
What are the Disadvantages of going into business?
You will have to ware many hats, meaning its up to you to take care of all business matters.
Going into business is a life-changing event and it can be very stressful.
Don’t make decisions that would effect others when you are personally disturbed.
It usually takes about three years to start showing a profit from a new business.
It is most unlikely that you will see any speedy returns on your investment and you must prepare for a long, and sometimes difficult challenge.
In the beginning stages especially, it could mean working long hours for little pay and making sacrifices in your personal life. Make sure those around you are prepared for the challenges ahead.
Should you start a business when you’re unemployed?
If you’re drawing unemployment your composition wages might not be enough to carry you through while starting a business. It may be better to find a job and slowly work into a business on the side. If you already have the tools, like a lawn mower (lawn service), a buffer and vacuum (carpet cleaning) or car (delivery service) then you might solicit people you know for business or references.
Starting your own business is not easy. It takes unusual fortitude to make the transition from wage earner to self reliance. Don’t attempt it unless you have the confidence and determination to succeed.
Enterprise Social Network – Giving a Whole New View to Collaborative Work
Big ideas can come from anywhere, which is why companies always try to involve everyone concerned whenever they are looking for the freshest ideas. They hold brainstorming sessions that includes everyone who is connected to a certain project. However, there is still the need to be physically present in such meetings. With the introduction of the Internet, such a need is made obsolete. All you need to do is log in at the appointed time and you can join the session via conferencing. Taking it one step further is the enterprise social network. Now, you don’t need to be physically present nor do you need to be online at a certain period of time. You can still collaborate with different projects without the time and place constraints.
Enterprise social network is made up of a social software that is used by enterprises to speed up and streamline communications. To be called an enterprise social network, it must have certain functionalities built-in such as a search function, linking, authoring, tagging function, as well as signaling function. One such software tool that is used commonly by companies and falls under enterprise social network is the wiki.
A wiki is a software that is made for enterprise social networking. It is a collection of web pages that is designed to be accessible to anyone. It can be configured in such a way that anyone who has the privilege can modify, add, or even remove content. Enterprises make use of wikis for collaborative work. Instead of having to meet in the board room every week, they instead make use of wikis to track down progress in any given project. Members of a certain project can then change specific web pages in the wiki just to keep the others informed of what has been done and what else needs to be done. There are several available wiki software on the web. Some would require you to pay, while some are open source. One such open source wiki is the DokuWiki.
DokuWiki is a small and simple to use Wiki software. It targets small companies that need collaborative work. This could include documentation or implementation of a project. If you don’t like setting up complex databases, then you would love DokuWiki. It works with simple text files foregoing the need to setup a database for it. Setting it up is as simple as downloading the compressed file, extracting the contents, and creating space for it in your server. Included is the install.php which will guide you throughout the installation.
If you are setting up an enterprise social network for your company, you might want to check out wikis. And if you want the simplest way to get started on one without having to shell out money, try the DokuWiki.
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Tags: Collaborative, Enterprise, Giving, Network, Social, View, Whole, Work | 
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Change Agents Unite – Coaching Social Entrepreneurs
Coaching Social Entrepreneurs
What Exactly Is A Social Entrepreneur, Anyway?
The concept of “entrepreneurialism” was developed in French economics and has always been related to developing new markets and economic progress within a capitalistic framework. A successful entrepreneur of the traditional, capitalistic ilk refers to one who has the ability to take a business to the point at which it can sustain itself financially and operate with minimal supervision.
While the jury is still out with respect to what characteristics accurately define a social entrepreneur, scholarly definitions still on the table range from anyone who operates a non-profit social enterprise to individuals simultaneously pursuing financial and social return on investment in for-profit corporations (e.g. social sector businesses or multinationals with varying levels of financial commitment to social causes). Other institutional structures considered are affirmative businesses, community development banks and hybrid organizations mixing non-profit and for-profit elements in a myriad of ways.
However, those deeply involved in defining the term in such a way that speaks both to the current trends in social innovation, as well as to an “ideal” characterization of the social entrepreneur, tend to emphasize the concept is about more than “giving back” to the community. They state, rather, that the best definitions refer to an individual who pursues initiatives to meet human needs, and who does so with a pure entrepreneurial spirit; that is with radical innovation and a relentless drive to achieve a “new equilibrium” and sustainable success for the projects.
Some Examples
Perhaps the most widely known social entrepreneur and the man whose initiative spurred the quest for the term’s definition is Muhammad Yunus, who is known throughout the world as the “father of microcredit.” Yunus founded the Grameen Bank in Bangladesh, making it possible for women who were unable to qualify for loans through the formal banking system or only by accepting exorbitant interest rates, to start their own businesses. By lending, from his own pocket, the now-famous sum of $27 to 42 women for capital costs, these individuals were able to stop begging in the streets, establish a tailoring business, pay back their loans and rise out of poverty.
Contemporary American social entrepreneurs include Steve Jobs and Wozniak of Apple Computers; Fred Smith of Federal Express; Pierre Omidyar and Jeff Skoll of eBay and John Wood, former Vice President at Microsoft, author of Leaving Microsoft to Change the World and founder of “Room to Read,” an initiative dedicated to literacy in the developing world. All of these individuals shattered the economic and functional limitations that held their industries back from radical change and created new approaches utilizing effective business models to make their projects sound and viable over the long-term.
Enter: The Coach
So, how might the coaching profession benefit social entrepreneurs? What might become possible for coaches and for the field of coaching as a whole as a result of coaching social entrepreneurs? And what might an ideal relationship between the two look like?
Generally speaking, once social entrepreneurs determine that they wish to live out the value of affecting positive social change, those who are working in the business world (many enter the field through other avenues), either restructure their companies or they leave their home companies to pursue these projects. Coaches who work with the corporate sector are in an ideal position to coach executives, senior managers and others who are longing to pursue large-scale social ventures, but require support to take the steps in this direction. Many coaches are already doing so.
In effect, you might already be coaching a social entrepreneur and not even know it. Becoming familiar with this emerging field can help both coach and client understand client goals within the most relevant framework, remain aware of available resources, dismantle limiting beliefs with greater speed and foster a certain comfort level with the notion of being an agent for radical, world-altering change. In turn, it can also allow the coaching relationship to remain highly relevant through the transition and beyond.
“Sound Familiar?”
10 Defining Characteristics of Social Entrepreneurs
According to J. Gregory Dees, Faculty Director of the Center fo rthe Advancement of Social Entrepreneurship at Duke University, there are a number of characteristics that define the social entrepreneurial model. The following 10 are central to his definition.
Social entrepreneurs:
1. are change agents
2. hold bold visions of qualitative change
3. address the causes of problems, rather than simply treating symptoms
4. seek to create systemic changes and sustainable improvements
5. adopt a mission based on their values and vision
6. entertain, recognize and relentlessly pursue new possibilities
7. are engaged in a continuous process of exploring, learning and improving
8. treat failure of a project as a learning experience, not a personal tragedy
9. act boldly despite perceived and real limitations
10. exhibit a heightened sense of accountability to those they’re serving
Fundamentally, then, social entrepreneurs are already very coach-like in their approach to pursuing their ideals. In both fields we see the desire for fearless change based in deep-seated values, the seizing of the widest possible range of possibility combined with a fundamental reverence for the human being and concern for the conditions in which human beings live.
A Marriage That Could Save the World?
Not only are the parallels between the characteristics of coaching and social entrepreneurship striking and their emergence on the world stage timely, the potential power that exists if the two fields were to merge and work together on a global scale is immense.
Might the timing and alignment be an invitation for the two to merge and work together more deliberately, within a new framework? From the coaching perspective, it is an opportunity to work with value-centered businesses toward more radical ends than ever and with individuals whose dreams have far-reaching impact. For coaches whose central values include addressing world needs or who harbor a longing to be part of large-scale transformation and change in the world, social entrepreneurship can be a niche-defining dream come true.
For the social entrepreneur, coaching provides the opportunity to move more forward swiftly, with more personal power, clarity and focus to affect positive change both in themselves and on the world stage. More than ever, these entrepreneurs need professionals who can challenge them to think outside even the biggest box and to support them in creating powerful social change, whether the desired result is hungry people fed, children clothed, the environment healed, advances in philanthropy, healthcare, film, or the emergence of new banking or political structures.
This relationship is also an opportunity for the coaching profession to become active in helping to create new paradigms for world change. And what if the relationship between the social entrepreneurial movement and the coaching movement could result in something even bigger – even more powerful? What if it is central to a shift in planetary consciousness? Not only could the reputation of coaching take a quantum leap as a result of this work, but these corporate clients who are fulfilling a mission greater than their own immediate needs would be met with a community prepared to walk alongside them.
Further Resources
Exploring Social Entrepreneurship
In Books
Leaving Microsoft to Change the World, by John Wood
www.leavingmicrosoftbook.com
In Film
http://www.pbs.org/opb/thenewheroes/about/index.html
http://www.skollfoundation.org/tvfilm/uncommonheroes.asp
For information on organizations, projects and awards visit
www.skollfoundation.org
www.schwabfound.org
www.ashoka.org
Article: “The Meaning of ‘Social Entrepreneurship’; J. Gregory Dees. May 30, 2001, p.4f. See www.fuqua.duke.edu/centers/case/documents/dees_sedef.pdf
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Going Green Is Not Just For Big Business-You Can Grow Profits, Too!
The world of big business is making daily headlines by “going green” after discovering that what’s good for the planet is also proving good for business.
IBM recently announced “Project Big Green,” a $1 billion initiative to reduce energy consumption by offering new lines of energy-efficient IT products.
Wal-Mart is adding solar power to more than 20 stores.
PepsiCo is buying renewable energy certificates to offset its carbon footprint. Even major banks and energy firms are being asked by shareholders to prove that they, too, are going green.
It’s not just the biggest businesses that are attracting new customers and shareholders and reaping huge profits by “going green.” Small businesses also are growing eco-profits by embracing surprisingly inexpensive strategies to add value to their products, services and brand.
Consider these innovative examples:
- Bob Smith of Mad River Brewing Company in Blue Lake, California, has attracted positive publicity (and new customers) by promoting his efforts to reduce his small firm’s waste output and take other environmentally conscious steps. In turn, he has received welcome positive publicity from the press. “What PR budget? That is our PR budget,” he told the Albuquerque Tribune about “going green” to market his business.
- In Florida, Natalie Kelly formed Home Therapy Cleaning Services, which uses only nontoxic, all-natural cleaning products for her home cleaning business. She used to sell aromatherapy candles from her home, she told the St. Petersburg Times, but today uses an aromatherapy baking soda blend to freshen carpets.
Here’s what you can do:
- Two inexpensive ways any small business or solo entrepreneur can go green are to change light bulbs to energy-efficient bulbs and use biodegradable cleaning products.
- With that done, tell your customers and the media about these simple ways to go green. You will have just earned instant credibility as a green business, and also as a media resource for simple, effective ways to “go green.”
- Many communities online and offline are forming networks to exchange energy-saving ideas for home and business. Form your own energy network, enlisting neighborhood businesses that will welcome another opportunity to show they’re going green, too. The plus for you is that you will have just positioned yourself and your business as a community environmental leader.
-Write a “green” article on simple ways you are going green and submit it to one of the dozens of “green” Web sites and blogs that invite reader contributions. It’s a great way to market your smart ideas and your business!
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Understanding the Dynamic Concept of Social Enterprise
Social enterprise can be considered the result of non-profit organizations’ mission to attain sustainability in the current economic scenario. In a time of cut throat competition for available funds and a steady decline of support from government and traditional sources, the growing practice of social enterprise comes across as a promising concept. In the last few years, it has not only helped non-profit organizations become self sufficient but it has also enabled them to spread out vital services to their constituents. Jamie Oliver’s restaurant Fifteen, the Eden Project and The Big Issue in the UK are some of the remarkable instances of good work in social enterprise today.
Social enterprises are mainly involved in trading goods and services for social purposes. Their aim for accomplishing social, financial, as well as environmental targets can be referred to as the ‘Triple Bottom Line’. There has been a significant change in the relation between the goals of individuals and business organizations. With a prominent increase in competition, many organizations are becoming more responsive. With the hierarchy passing over the control to individual teams for decision making and execution of work, it has become easy to set goals globally and execute them locally. Agility of companies is required to turn a traditional organization into a social enterprise.
Social enterprises operate in different areas. For instance, social enterprises may take form as organizations involved in community recycling, development trusts, community shops, renewable energy initiatives owned by communities, housing associations and farmer co-operatives. Several financial products are required by social enterprises in order to bridge the gap between commercial finance and traditional grant support.
Even though this dynamic concept combines social, environmental and economic objectives that can transform communities, its potential still needs to be exploited to a greater extent. In order to become a social enterprise, companies need to initiate good work, begin income generation mostly from trading and make use of a large part of their profit in social and environmental objectives. The concept of sustainable development needs to be integrated as a business model in organizations all over the world for better results.
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Benefits of Social Enterprises
There are several benefits associated with the growth and development of social enterprises. Besides the generation of revenue for sustainability, these enterprises also serve social and environmental objectives. Even though there are difficulties in achieving the triple bottom line of social, environmental and financial aims, the ability to bring positive changes in the society can be very rewarding.
One of the most important benefits of running a social enterprise is to offer employment to local people. There are many people who find it difficult to get a job in the market. This is the point when social enterprises play a very important role in offering employment. Local people who have remained unemployed for a long time, belong to a minority group or are disabled can easily find a good job in such enterprises. Not only unemployed but employed people who don’t want to be a part of the traditional work environment can also join a social enterprise and make a difference to the society and environment. It offers a platform where an individual can make a difference within a flexible work environment and even encourage people to do the same. Since these organizations work on the concept of combining commercial practices with social values and goals, anyone looking for making a difference to society can achieve success.
It is important for social enterprises to be competitive, no matter which environment they operate in. Only by offering products and services of high quality in an innovative manner, such enterprises can attract more customers. Apart from focusing on environmental and social aims, social enterprises are also involved in revenue for sustainability practices. But the big question is – does every company that follows socially responsible practices can be considered a social enterprise? The answer is no. There are several companies that have integrated the concept of corporate social responsibility in their business operations but it doesn’t mean they are meeting social and environmental concerns more than profit making. There are several non-profit traditional investment firms that don’t prefer to invest money for the growth of social enterprises, but this certainly doesn’t mean that these enterprises don’t have long term benefits.
The Differences Between Enterprise Culture and Corporate Culture
Enterprise culture:
Enterprise culture consists in an organizational or social environment that encourages and makes initiative and innovation. An organization with an enterprise culture is usually more competitive and more profitable than a bureaucracy. Such an organization is believed to be more rewarding and stimulating to work in. A society with an enterprise culture facilitates individuality and requires people to take responsibility for their own welfare.
Characteristics:
· Enterprise culture is useful for small businesses.
· Enterprise culture is characterized by innovation, creativity, dynamism, and risk.
· It usually requires several of the following attributes: flexibility, initiative, problem solving ability, independence, and imagination.
· Enterprises flourish in the environment of nonhierarchical organizations but can be stifled (stopped from being developed) by bureaucracy.
Corporate Culture:
Corporate Culture consists in the combined beliefs, values, procedures, and atmosphere of a large business. This culture is often expressed as “the way we do things around here” and consists of largely unspoken values, norms, and behaviors that become the natural way of doing things. This culture is typically created unconsciously, based on the values of the top management or the founders of a business.
Characteristics:
· Corporate Culture is useful for large businesses.
· Corporate Culture is more natural and unconsciously created.
· In large businesses there is an unavoidable bureaucratic hierarchy.
· The leader has a very pivotal role.
Main Differences:
· The size of business in a corporate culture context is larger than in an enterprise culture context.
· In a corporate culture context there is an obvious hierarchy whereas in an enterprise culture context this obviousness does not exist.
· Corporate culture is so much associated with dress code, titles, and organizational structure whereas enterprise culture is concerned mainly with the output regardless of the rest.
People who work in small businesses or in small corporate divisions are more likely to start a business than those who work in a large firm because they gain more familiarity with the whole business process, which makes starting a business seem much more feasible.
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