Social Enterprises: What Allows them to be Successful

Social enterprises strive to tackle social problems, improve the lives of the people around them and help create a sustainable environment. Three specific enterprises will be analyzed to illustrate the differences between management styles, mission, financials and overall successes. There are numerous social enterprises in the southwest of the United States of America, some show more success than others, but what separates them? What commonalities do some of these enterprises share that allow them to be more successful than the rest? Is there a common denominator for enterprises to follow that will allow them to have success financially as well as accomplish their goals to better the community around them? Free Arts for Abused Children or Arizona, Seed Spot and Goodmans, we are able to better distinguish what factors allow enterprises to succeed. Due to the nature of social enterprises being able to be qualified as different types of organizations, i.e., company with shareholders, nonprofit organizations, etc. it is difficult to pin point a concrete model social enterprises should follow today. However, a finding that made all three of these social enterprises successful were their governance and ownership structures. Each enterprise consisted of a board that helped the enterprise stay on track with their given mission. Boards are also responsible for making major decisions that can impact the organization as well as being responsible for fundraising and making various financial decisions. After analyzing their structures, it was evident that all three enterprises consisted of strong governance structures. Although enterprises may not be able to follow a distinct model in order to be successful, they are able to place a board in control that aligns with the social enterprises mission and has a variety of knowledge that allows the board to make sound decisions. Keywords: social enterprise, management, governance, success, mission, financials