Tag Archive for: social enterprise

Profit, Scale and Transformation: The Freedom Business Alliance

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We interviewed Jennifer Roemhildt Tunehag, who is part of the core team for the new Freedom Business Alliance initiative and asked her how the FBA came about and what it is doing.

We are hearing the term Freedom Business being used more and more, what is a ‘Freedom Business’? 

It’s a business that exists to fight human trafficking. There are several types of business that fit into this category:  businesses that create jobs for survivors of exploitation would be the most familiar, but we would also include businesses that hire vulnerable people in order to prevent exploitation, as well as the aggregators who take products from these first two to new markets. A fourth category would be businesses that provide services specifically to and for other freedom businesses (ie., communications, logistics support, etc). Finally, there are businesses who have devoted the profit from their companies to fight trafficking. These are also part of the freedom business ecosystem.

We sometimes call freedom business the ‘backwards business’. In a normal business paradigm, an entrepreneur sees an opportunity to create a product or service that meets a need in the market. By gathering a qualified staff, he sets himself up to make a profit. 

In contrast, a freedom business starts with the group of people it intends to employ. In businesses working to prevent human trafficking and exploitation, those people have been made vulnerable by poverty, lack of education, or other challenging variables. For those in business for restoration, the difficulties are greater.  Their employees have already been victimised, and the resulting trauma creates levels of complexity in life and employment. Read more

Purchase with a Purpose: Creating a Sanctuary for Survivors of Human Trafficking

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Neither of the founders of iSanctuary expected to be engaged in business as mission, particularly not in the area of helping victims of the commercial sexual exploitation industry. However, after spending time in India, Stephanie and Wendy saw needs that they could not turn away from and decided to act. In Stephanie’s case, a magazine article about sex slaves captured her heart. Wendy first visited India and “fell in love with the country and its culture, but was haunted by the incredible poverty.” The two met on this trip and found a common desire to be a part of providing hope and facilitating freedom for these women in whatever way they could.

International Sanctuary (iSanctuary) was founded in 2007 and began working with young women in shelters in India. The organization aims to live out its name by being a sanctuary for survivors, a safe environment that contributes to their being able to transition from surviving to thriving. They generate revenue through the sale of jewelry and also offer educational and support programs to survivors of human trafficking in both India and the United States.

The founders of iSanctuary visited India, as a part of separate missionary-type journeys. Each felt a pull toward taking action that lasted well after their scheduled trips. They determined early in their business life to avoid an outward label of being a “Christian organization” and many of the individuals who have served their organization faithfully have been volunteers who do not share a common faith with the founders. However, throughout their journey, the leaders of iSanctuary have sought God’s direction. They share that despite a lack of previous experience, God has shown them way and provided guidance. He is also central to their business ethics and choices. Read more

Creating Jobs for the Exploited: a Vital Need and a Unique Challenge

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Employment and Employability

Human trafficking feeds on economically depressed and unstable communities. In these communities, the general population is desperately searching for employment (often in another city or country) and economic opportunity is seen as dependent upon an outside force. In such a climate, families can be tricked into selling one or more of their children. Desperation for work and transience create a potent mix that leaves people vulnerable to exploitation, particularly young women. The creation of jobs in such vulnerable communities prevents many from entering the trade – whether out of desperation or trickery. BAM enterprises, economic development and other job creation approaches can effectively work in these communities to raise families out of poverty and reduce vulnerability. This is vitally important, however, does not necessarily require an in depth understanding of the complexities of anti-trafficking work.

On the other hand, those who seek to create jobs and provide employment for individuals who have previously been victimized by human trafficking and sexual exploitation must consider unique challenges arising from this situation. Although there are many facets to the development and restoration of these individuals, finding secure employment is a basic need that must be met in that process. There are many challenges associated with creating employment opportunities for these individuals, along with helping employees gain the skills needed to sustain employment. These can be minimized by a keen awareness of needs, resources and the overall restoration journey. Read more

In Business for Freedom: Fighting the Business of the Sex Trade with Business as Mission

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It is estimated that between 12 and 27 million people globally are currently caught in human trafficking and exploited for their labor or sexual services. In a report by Dall Oglio to the UN General Assembly in 2004, he stated that 10 billion dollars are exchanged every year in the sex industry. Putting this number in perspective, of the 186 member countries in the International Monetary Fund in 2004; 81 of those members had national GDPs that were less than the amount of money generated by the sex industry that year.

To begin combating the monstrosities represented by these numbers, we must recognize that trafficking is an industry and the sex trade is a business. These are economically driven enterprises.

Trafficking was first defined by the UN Convention against Transnational Organized Crime. Put in the simplest of terms: it is the recruitment, transfer or keeping of humans for the purpose of exploitation. According to the US Department of State report Trafficking in Persons (2007), human trafficking is the world’s third largest criminal enterprise after drugs and weapons. While the exact numbers for these three enterprises are understandably hard to obtain, it is speculated that human trafficking has more recently taken the number two spot over weapons. There is more money to be made in human trafficking, and less chance of being caught or punished. The entire chain of distributors will earn a profit, the product is less capital intensive and the ‘merchandise’ can be sold over and over again. Understanding the sex trade as an economic enterprise means we must intentionally and systematically consider the use of business as a strategy to fight the trade on both a macro and micro level. Read more

Business and the Body: Burgers, Burma and Keeping Connected

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From the rooftops you can see it. The personality of the land shifts as the row of buildings stretches towards the river shore. There is a gap there, the space for the river that marks the border, and on the opposite shore the skyline is again lifted by buildings. The buildings on either side of the border hide secrets behind their darkened windows and signs. These are the real stories behind the international headlines about war and human trafficking, about refugees fleeing persecution. The stories are reflected on faces around town – the people that have ended their journey at this border town where the river divides Burma from Thailand.

Set into the curve of the river on the Thai side is a small city, unremarkable by Asian standards. Bustling with local Thais, NGO and aid workers, adventure-seeking tourists, and the quieter but prominent refugee community; the unspoken undercurrent is ‘we’re all here, hoping for the best, and doing the best we can.’ It’s a promising setting, ready to receive the incoming ‘Friendship Highway’, which is said will unify these Asian countries with trade partnerships and tourism. New buildings and malls dotting the cityscape are the first evidence of a hoped-for economic boom. The new road is not all good news. It will also provide a thoroughfare for the darker trade of humans, vulnerable to poverty and traffickers. Read more

4 Resources to Help You Decide What to Measure

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BAM companies have a lot to learn from the social enterprise movement. One of the things that social enterprises have been thinking about for a long time is: How do we measure more than the financial bottom line? Here are 4 resources that will help you think about metrics more holistically and give you tools to measure your impact.

 

B Corps Impact Assessmentmeasure what matters

B Corps advocates for measuring what matters most: the ability of a business to not only generate returns, but also to create value for its customers, employees, community, and the environment. Use B Corps online tool to assess how your company performs against dozens of best practices on employee, community, and environmental impact. Compare your company’s impact with thousands of others. Create a plan to improve your company’s practices, and help your staff implement them easily using the Best Practice Guides.

 

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Business as Mission: What Do I Have to Offer?

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by Larry Sharp

Post first published on the IBEC Ventures Blog, reposted with kind permission.

This question is sometimes asked me by North American kingdom business persons who own or manage businesses: “What can I offer as consultant, advisor, mentor or coach?”  It is a natural question for business persons living and working in a very different context from a business startup in Asia, Africa or the Middle East.

What is business anyway? Is it not something like this: an organization with appropriate management that provides a good or service and is created to earn a profit, serve customers and create jobs, community value and increase wealth? That is universal. Followers of Jesus have an integrated kingdom perspective in all they do (1 Corinthians 10:31) so they operate businesses for the glory of God. Faith is integrated into daily work.

A person who has owned a small or medium-sized business (or has worked in the management of such) has likely learned a great deal about one or more of the following. The things that have been learned can be passed on in a consulting, coaching, teaching or mentoring venue. Read more

Friday Links: Posts and Resources on Social Enterprise

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Every Friday we connect you with some of our recent favourite links. This week:

Posts and resources from the social enterprise movement

C is for Customers: Don’t neglect the frontline – Pioneer Post

When you’re steering a business from the top it is sometimes easy to assume things about your vital customers – what they want and how they will spend their money. Assume nothing and make sure you spend as much time on the frontline as possible. Liam Black explains hard hitting lessons he learnt when opening up a new social venture in the third extract from his new book The Social Entrepreneur’s A to Z.

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Stop Helping Us! Moving Beyond Charity to Job Creation

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by Peter Greer

Excerpts from eBook ‘Stop Helping Us!’ reproduced with kind permission from the Institute for Faith, Work and Economics and Peter Greer. Buy eBook.

Stop Helping Us! introduces a new paradigm for an evangelical response to poverty alleviation. Being effective means recognizing that there is a difference between short-term aid, which is important and necessary, and the long-term elimination of poverty, which is the best defense against receding back into material poverty and the most effective method of elevating the dignity of all God’s children. We will see the stories of those who were transformed by effective, long-term aid that focused on the individuals rather than just numbers. Included are surveys of the poor and what they desire, showing that their goals have little to do with money and everything to do with using their skills, caring for their families, and embracing their God-given dignity.

The Story of Fadzai

Every time an employer discovered Fadzai Nhamo, a woman from Zimbabwe, was HIV positive, the door shut. “Life was difficult for me when I came to Harare,” Fadzai later remarked. When Fadzai speaks, she covers her mouth to hide her missing front teeth, a daily reminder of the brutal way she contracted HIV. “I left my hometown after someone had beaten and raped me,” she said. Following the assault, a friend took her to a clinic at the capital, Harare. There she discovered she was HIV positive. “When my husband found out I was sick [with HIV], he disappeared,” Fadzai commented later. “I did not have a place to live.” After her husband’s abandonment, Fadzai was left a single mom, a stranger in a new city. With no place to call home, she moved from place to place with her children.

It is possible to debate many points of theology, but our faith clearly calls us to care for Fadzai, an individual who has been exploited and abused. She is the widow and foreigner so frequently mentioned throughout Scripture. When we hear the story of Fadzai’s mistreatment and understand the message of grace in Scripture, we are compelled to respond. Read more

Lessons from the Edge: Fighting Poverty Through Business

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Insights from a BAM Practitioner

Brian Albright has been involved in international development and business (in agriculture and health care) in East Africa since 2004. He currently teaches Business as Mission and Social Entrepreneurship at Hope International University in Fullerton, California, USA.

Invest in your key relationships and stay teachable
I’ve been blessed to partner with two amazingly gifted Kenyans to run our companies. They have strengths and weaknesses—as I do—that must be understood and managed. The cultural differences are real, and I could share many stories where my presence, perspective, and opinion were detrimental, and I learned to stay teachable. I know the most valuable investment we have made in our long-term business success is the time we have taken to build trust, communication, and a more open relationship. If I were to start over new in another location, the first thing I would do would be to find the right partner and develop that kind of relationship.

Monitor the numbers regularly
In the context we work in, there is a strong donor mentality due to a long history of handouts. With some of our employees and clients, it is hard to make the switch in mindset to running a business that is sustainable, where “finding a donor” isn’t the proper response to financial problems. The way we avoid this mentality is to set specific quantitative goals and monitor costs, revenues, client totals, labor hours, profitability, etc. on a regular basis. This focus on the numbers reminds us that we are a business.

You can’t do it all, work with others
While working alongside the poor, many issues emerge such as AIDS, alcoholism, nominal Christianity, sexual promiscuity, children’s school fees, costs of health care, etc.. Our business exists to meet these social and spiritual needs, but our primary role as a business is to provide goods and services and to create jobs. There are churches, health clinics, and NGO’s that we partner with in our community so that our company isn’t all things to all people. While our goals are beyond that of a traditional business, we are not experts in all of these areas, nor should we try to be. I think we are better at accomplishing all of our goals because we partner in this way.

Poverty, Inc.

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As we introduce this new series on ‘Business Fights Poverty’ on The BAM Review blog, we want to recommend the documentary Poverty, Inc. as a great resource to understand more about this issue. We believe enterprise is the way God designed communities to rise out of poverty and develop. Business is integral to human flourishing.

Yet business does not stand a chance in many communities because of a dependence on aid. The unintended consequence of good intentions can often be the destruction of the local economy.

Aid versus trade is just one of the issues around the topic of ‘business fights poverty’. Through this theme we want to be thinking holistically about addressing physical, social and spiritual poverty. We want to grow in a Biblical view of what human flourishing means. Read more

Friday Links: Posts and Resources on Social Enterprise

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Every Friday we connect you with some of our recent favourite links. This week:

Posts and resources from the social enterprise movement

10 Lessons From 10 Years as a Social Entrepreneur – Huffington Post

Ten years ago, I shipped the world’s first fair-trade avocados from small-scale farmers in Mexico to Europe – and my social enterprise was born. At the time, I’d never heard of a “social entrepreneur”. I just wanted to use my business skills to help small-scale farmers transform their lives. Now, I identify as a social entrepreneur down to my bones, and my enterprise has scaled around the globe and impacted thousands of farmers in many countries. Our mission is far from complete, but the anniversary is an occasion to reflect on the key lessons learned during 10 life-changing years.

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Business as Mission: Where social impact and profit, and much more, converge

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Post first published on the IBEC Ventures Blog, reposted with kind permission.

Some people find it confusing to read about socially conscious business, social entrepreneurship or values-driven business. Isn’t business just business – driven by profit margins acceptable to shareholders? What’s all this talk of values, social impact and community development?

For the past decade or so it has become increasingly popular to talk about social purposes, meaning that some entrepreneurs have a motive beyond profitability. They want to solve social problems and bring a positive return to society. Big corporations sometimes address this through the concept of Corporate Social Responsibility (CSR); and business startups sometimes call themselves social entrepreneurs meaning they start businesses which inherently provide for maximum job growth in their area, or they hire the marginalized in the community, or they take gigantic steps to benefit the community by helping solve problems that exist in the community, or all of the above. Some entrepreneurs are driven by a cause, like a software developer eager to provide a better way for people to connect.
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Friday Links: Posts and Resources on Social Enterprise

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Every Friday we connect you with some of our recent favourite links. This week:

Posts and resources from the social enterprise movement

The Future of Social Enterprise in 2015 – Fast Company

The social enterprise space has definitely come of age in recent years, growing by leaps and bounds and gaining momentum even as you read this. But there’s no denying that it gets harder from here… I am wresting with how we more clearly define the space without creating a silo for social enterprise and losing sight of the real victory: a time when every business is mission-based with social impact and environmental protection at its core.

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The Emergence of the BAM Movement

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by Steve Rundle

Not long ago the Wall Street Journal noted a significant change in the attitudes of university business students1. Compared to other incoming classes in recent memory, today’s young people are more interested in using their business skills to make a positive difference in society. Undoubtedly, many have been inspired by social enterprises like Tom’s Shoes, Kiva, and Chipotle’s Mexican Grill, as well as turned off by stories of corporate excess on Wall Street.

In Christian circles we are seeing something very similar. “Business as Mission,” as the name suggests, involves businesses that have a missionary impulse.  Neither motivated by money, nor embarrassed about making it, these enterprises and the entrepreneurs who start them defy easy classification. Like Social Enterprises they are hybrids in their purpose, and in many cases, their organizational structures. The main distinctive is that “Business as Mission” extends beyond addressing the physical needs of the poor (or the ethical treatment of pigs and chickens, as in Chipotle’s case), and includes a desire to make Christ known and see people freed from spiritual bondage.  While social entrepreneurs want to do good for their fellow man, so-called “BAMers” in addition, are motivated by a desire to serve God and draw people’s attention to Him. The Christ-centered nature of BAM is a significant difference that gives rise to different questions and requires a more interdisciplinary approach to the subject.

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Tag Archive for: social enterprise