In my decades of walking around different parts of the social economy, there's something that's always personally bugged me - far too few people encourage us to openly talk, and think about, how we get paid (and how much we should be paid).
The focus always seems to be on supporting a person or groups' shiny social enterprise idea, and how to help it create as much impact in the world as possible. There's an implicit assumption that the social entrepreneur leading it will not only be able to give the emerging and growing venture whatever it needs from themselves personally (time, energy, own money, etc), but that they'll be able to do so indefinitely without needing to take anything from it to balance/in recognition of this.
Also, there doesn't seem to be any talk of 'succession' or 'exit' (such as we see in 'mainstream' business support programmes). There's little or no option for social entrepreneurs to take any form of future 'sweat equity' in lieu of foregone wages, the lost time they've incurred in otherwise having been able to build up savings for their own retirement, etc; (does this mean we may see future generations of social entrepreneurs retire into poverty?).
This also creates problems beyond those for the individual person as outlined above - most people who pick up, or are offered the badge of 'social entrepreneur' aren't in privileged or independently wealthy positions. They (we) need to continue to earn money to pay our rent and bills with. And as social enterprises are usually relatively slow to start to be able to generate enough cash to offer and sustain wages, this usually means many start life as 'side hustles' alongside other paid work that the person needs to maintain so they can still afford to live. This in turn, creates more tensions and potential issues for these new social enterprises, as they're being managed with a part-time/split-focus founder.
But despite the potential gloom in the above, I'm starting to see/take some encouragement from a small but growing trend of people who seem to be similarly feeling able to start to talk more openly about the social enterprises they're developing, and who need to recognise and reconcile these tensions and possible contradictions - this has led to my being asked to explore more 'group structure models' (using combinations of linked legal forms to help best manage the tension between a founders' personal, and their respective communities' needs, both now and into the future). It's also involved my starting to be approached by the leaders of more established social enterprises and charities, asking for support with salary benchmarking (although to date, this has highlighted how in general and as a whole sector, we usually pay our people and selves less than in other sectors for broadly similar roles, and this includes with making less provision for future pension and retirement).
I also recognise the tension that underpins all of this - if what we're doing is to ultimately create social good, then to pay better wages etc, we need to charge more. But how can we feel comfortable doing this when we see that the communities we support are in poverty, etc?
But if we don't find ways to start to address these elephants, then we risk losing talent and skills as people may begin to feel that they can't continue to trade off their personal futures for the sake of helping others today - and actually, research from Social Enterprise UK shows that social enterprises are generally more likely to be profitable if they're trading in areas of deprivation; so it seems that there are ways to reconcile this apparent contradiction.
I have an idea that the only way we can start to break this taboo of social entrepreneurs being able (encouraged, and allowed) to pay themselves both today, and with regard for their future retirement chapters without feeling guilty for doing so, and the limitations it's placing on the sector as a whole, is by trying to talk about this more openly and in grown-up ways.
To this end, I'd encourage anyone reading this to share, reply, and engage in these conversations where and how you're able to (although I recognise that talking about money isn't something we Brits do very well). But if no-one talks about it, then nothing can ever change...
