Why I like hearing about social enterprises failing

That's a bit of a provocative title for this blog, but then, I've always tried to take an approach of 'poking a stick' at accepted wisdom and cherished institutions to get people fired up enough to start to ask questions they should be, and not meekly 'going with the flow'. If nothing else, I hope that in doing so I can encourage people to think more for themselves and seek out what the right options might be for their enterprises and ideas, rather than simply accepting what they're offered by 'a professional advisor'...

 

But back to the topic in hand - why I like hearing about social enterprises that fail (and there was one that was lost in Scotland recently, to much apparent wailing and gnashing of teeth locally...).

 

Social Enterprises are politically in vogue (and have been for some time - apparently, every year since 2001 has been 'the best time' for them, and the point when 'their time has come'...). And that means with such interest from the state and investing bodies, we need to make sure that we show a successful story and evidences of great things happening. Heaven forbid we should let slip that just like other businesses, we sometimes struggle, stumble, and fall, as that would run counter to the messages that sector bodies and funders are keen to project...

 

And as a result we hear a lot of case studies showing how great it can be, and hear a lot about 'good/best practice' in the sector. But I've never been a fan of 'best practice' as it's usually based on specific people being in a specific place at a specific time. And that's very hard to replicate elsewhere. 'Bad practice' by contrast, tends to be a reflection of more common mistakes and erroneous assumptions - and as a result is much more applicable universally in the learning we can gain from it.

 

Only talking about successes can also create false and unrealistic expectations amongst communities, individuals and investors/funders. And so when they fail to deliver, this wider ecosystem of support and encouragement gets dented and becomes less supportive and interested in working with us.

 

So, lets be more honest about the realities of social enterprise: just like any business, they can sometimes fail. And in being more open and honest about that, we can better learn how to make them stronger in the future, and how better-grounded relationships with others we engage with.

 

Let's celebrate social enterprises and the success stories that exist, but lets also celebrate the learning to be had from when they stumble - it's nothing to be ashamed of, and in the times when we've not succeeded, through the sharing of our stories we may paradoxically better support others in their journeys that if we had succeeded...