Our last blog entry dealt with the definition of a social enterprise using an excellent article written by Andy Horsnell, What a Social Enterprise Is ( and Is Not). You may find the complete article at the Free Management Library (www.managementhelp.org). In this entry we would like to continue with “Why Social Enterprises Matter” from Andy Horsnell’s article. Here we briefly cover thoughts on positive change (impact), responsiveness, scalability and stakeholders.

Focusing on positive change is the first characteristic that may be attributed to social enterprises. If our goal is to bring about change in the families we serve, then let’s not waste our time, or the family’s time, by merely providing a little more income for a short period of time. Our focus needs to be on sustainability that will affect multiple generations.

Horsnell points out that the social enterprise is more responsive. Unfortunately there is a lot of truth in this obervation. We at Cross Trade have noticed a particular government program in one state pass over or discontinue assistance to families that were very poor. Perhaps the remote location of the families make assistance more difficult to provide than other families that live closer to the state capital. Or the family head is not as astute in taking advantage of the government program therefore needing more initial help. If it was easy to help these families, probably more people would be doing it. We can not let problems that are inherent in any social activity deter us from meeting obvious needs.

Scalability is something we struggle with at Cross Trade. Presently we are serving 45 families. Each trip that number grows as we continure to seek out for poverty level families. We know that the scale of impact must grow to positively affect entire communities. Presently we are doubling our financial commitment to increase the number of families we serve.

Stakeholders of Cross Trade include the customers who visit Cross Trade’s retail store in Blowing Rock, store owners who buy products wholesale and purchasers of products sold here on the website. These stakeholders are crucial to a sustainable income for the families. But two more stakeholders are the artisan families in NE Brazil who are working their way out of poverty and the two Cross Trade team members, Evaldo and Silas, who stay in touch with the families providing constant encouragement, directing payment for the orders, and organizing the shipping to the USA. Each stakeholder has an important function and voice in how Cross Trade operates.

In our next blog entry we will discuss the Base of the (Economic) Pyramid.

Cross Trade considers itself a social enterprise.  Our purpose, investing in the lives of the poor in NE Brazil, and market based strategy of retailing and wholesaling their products in the USA and Brazil, indicate this assessment is accurate.

Since this is the first of regular additions to the Cross Trade blog, I thought it would be appropriate to define social enterprise.  Then as you become more familiar with Cross Trade’s operations, you can use this information to form opinions on how well Cross Trade is doing and what changes should be considered.  (Your input will always be welcome!)  The following is taken from an excellent article written by Andy Horsnell entitled “What Social Enterprise Is (and Is Not)”. You may find the complete article in the Free Management Library (www.managementhelps.org).

Horsnell says:  “Social enterprises are social mission driven organizations which apply market-based strategies to achieve a social purpose.”  The social purpose is foremost in Cross Trade’s mission to provide opportunities to families living at the bottom of the economic pyramid to earn a sustainable income.  We use the term ‘opportunities’ because the families we serve are using their talents and doing the hard work.  We pay a fair and sustainable price for the products, make equipment loans free of interest and provide capital for expansion and/or new product ideas.

Horsnell goes on to explain what a social enterprise is not:  “Social enterprise is not about balancing the ‘double bottom lines’ of profit and social impact.”  Social impact is Cross Trade’s goal – measurable, sustainable, one family at a time.

He also says the social enterprise is not just another fundraising strategy for nonprofits, and not about “saving” the non-profit sector.  Our goal is to work our way to sustainability (We are not there yet!) but not necessarily a profit.  Although we do receive small donations from time to time, we do not want to siphon off funds that could be directed to non-profits.  We never solicit donations.

More on Social Enterprises in our next blog entry.

Evaldo & Maria making shipping boxes

CROSS TRADE’S NEWEST TEAM MEMBER

Evaldo Prata is our newest member of the Cross Trade team.  Born in São Paulo, Brazil, Evaldo Studied business administration and engineering at Pontifícia Universidade Católica de São Paulo and Faculdade de Engenharia Industrial.  He brings to Cross Trade 25 years of business experience and a heart for the people we serve.  With Evaldo’s work  CrossTrade will more than double the number of  families being helped to escape the trap of poverty.

Already we have experienced Evaldo’s work ethic and administrative abilities.  In September we traveled together meeting with new families to help.  Evaldo planned a rigorous schedule of meetings that went from morning until after dark covering amost 3000 kilometers!  Never trust a Paulista from São Paulo when work is on the line!!

Evaldo, we are grateful that you have joined Cross Trade.

Cross Trade’s passion is to provide opportunities for families in Brazil to work their way out of the trap of poverty.  One thing we are continuing to learn is to ask questions and listen!  The families we serve know better than we do what help they need.  However, we also want to hear from you!  Ideas on helping our partners (families) and the products that are sold in our Online Store and our Blowing Rock, NC store.  If you have comments or suggestions for improving our service, please post them here.  If you have encouragement  for our partners in Brazil, you may include them here. We will translate them into Portuguese and send them to Brazil.  Responses from these families will be posted here.