Why even mention in the business world that you are a social enterprise?

Edward Harkins
08.03.07

'Dragons' Den' last night (BBC2 8pm) was a searing example of what happens when we are not clear on definitions and understanding about what social enterprise is.

One of the business proposals to the panel of venture capitalists was from a social entrepreneur. The proposer explained that the social enterprise company would be a viable business. The social element came in when she and her other entrepreneurs would donate their share of profits to a named charity. If any panel members invested they would receive all of the profits with deduction.

The panel members mostly thought the produce idea was good but they just could not get over their fear of what they saw as getting involved in 'a charity'. One member even said she might have invested had the company not been 'about charity'. Even the programme presenter kept referring to 'a charity'. No panel members invested in the social enterprise, and in the backchat one member warned that mixing charity and business was 'very dangerous'.

There are several lessons here. One is the importance of clearly defining and projecting, when appropriate, what you are as a social enterprise (i.e. you're not a charity or a voluntary organisation). Secondly, why even mention in the business world that you are a social enterprise? Instead, you should stick to playing to your business strengths and to the commercial case for investors investing in what you do.

Dragons Den is on BBC, Wednesday, 8pm.