Social enterprises, social value and job creation in Cape Town

Abstract

Social enterprises are organisations which seek to meet social needs whilst generating their own financial returns. They are becoming increasingly important in South Africa as their approach is not dependent on philanthropy and is therefore largely self-sustainable. Meeting social needs can happen in many ways, but bottom up approaches, which are driven by the poor through providing access to satisifers for fundamental needs are becoming increasingly important. The impact which social enterprises have is not clearly understood and is seldom measured. There is a need to develop tools which are able to portray the social value of these impacts. This study seeks to explore the impact of three social enterprises in Cape Town. The study focuses on the social value of job creation, a pressing need across South Africa, and a social return common to all three enterprises. The study found that a primary concern for staff was job security and earning a decent wage, and without this as a starting point other social returns are minimised. Camaraderie and a sense pride are two important social returns which are also produced. The study also showed that producing social returns must be an intentional activity, and involves a process of negotiation and understanding the needs and values of different stakeholders