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.