Are social enterprises more effective than non-profits in solving the worlds problems?
I was sitting down with a friend who is a seasoned sales executive and conversation turned to high-and-mighty topics of solving the world’s problems. He began talking about how the water problems in some third-world countries are 100% solvable but have not been because of a lack of execution on the part of the organizations on the ground there–despite a steady stream of funding and numerous NGO’s, non-profits, and government initiatives trying to solve the problems for decades. He went on to maintain that for-profit “social enterprises” are better positioned to solve the world’s problems because they have built-in, rigid accountability through stakeholders and must drive innovation to stay competitive. Non-profits, on the other hand (he maintained) are usually behind the curve in seeking innovative solutions and have accountability that inhibits growth rather than spurs it. I’m not so sure… What do you think?
