The Power of Social Business
The distinction between the business and social sectors is becoming increasingly fluid. Corporations are seeking to more actively address the challenges faced by society, and they are leveraging their business expertise to do so.Social organizations are looking to companies in the private sector for the best practices, skills, and know-how needed to deliver greater value to populations in need and to increase operational efficiency.
New approaches such as impact investing, hybrid value chains, and shared value are emerging at the intersection of the social and business sectors, aiming to blend the best of both worlds. In 2011 alone, 60 impact investing funds were created, raising the combined total capital available for social investments to an estimated $40 billion. About 2.8 percent of U.S. workers are already involved in hybrid social enterprises. And the European Union estimates that 25 percent of all new enterprises in Europe can be considered social enterprises.