Incompass Michigan is a statewide network of comprehensive human service providers working together to develop independence and achieve inclusive communities. The mission driven businesses that comprise our membership provide services and supports for individuals with disabilities or who face other barriers that help people live, work and play in their communities. While the business model for these organizations is often built around providing these services for a fee, innovative practices have emerged to drive revenue generation in support of attaining their mission – one of which is social enterprise development.
Social enterprise represents a growing sector where businesses aim to generate social or environmental impact alongside financial returns. Unlike traditional profit-driven entities, social enterprises prioritize addressing social issues such as poverty, environmental degradation, community development or opportunities for under-represented groups to participate in the work- force. Social enterprise development offers many benefits, along with tremendous opportunities for employers interested in engaging with this innovative business model.
Social enterprises operate across various industries with a mission to create positive change. They use entrepreneurial approaches to tackle social challenges, often reinvesting profits to further their social mission.
Key features include:
- Dual Mission: Combining a social or environmental goal with sustainable business practices.
- Revenue Model: Generating income through goods or services while prioritizing impact over profit maximization.
- Accountability: Measuring success through both financial performance and social impact metrics.
Employers can derive several advantages from supporting or integrating social enterprise practices into their business strategies, including:
- Enhanced Corporate Social Responsibility (CSR) – demonstrating commitment to community and sustainability.
- Employee Engagement – embracing and retaining talent passionate about social causes.
- Market Differentiation – appealing to socially conscious consumers and investors.
- Partnership Opportunities – collaborating with social enterprises for mutual benefit and shared growth.
Want to learn more? Here are a few basic tips for employers interested in engaging with social enterprise:
- Define Your Objectives – clearly outline how engaging with social enterprises align with your business values and goals.
- Collaborate Meaningfully – build partnerships based on shared values and complementary strengths to maximize impact.
- Measure Impact – develop metrics to assess both financial and social outcomes, ensuring transparency and accountability.
- Employee Involvement – encourage staff participation through skills-based support or mentorship programs.
To further advance the vision of social enterprise development, Incompass Michigan, in collaboration with the Small Business Association of Michigan (SBAM), has secured a state investment to foster the development of employment-related social enterprises across Michigan. While social enterprises can take many forms, employment related models offer jobs and job training for individuals who might otherwise have limited opportunities and support.
These enterprises help individuals who traditionally haven’t had a strong career pathway by offering supportive work and skill-building opportunities, and providing a source of income that promotes independence. As importantly, social enterprises help connect individuals to supportive services, such as childcare, and provide opportunities for leadership development and com- munity engagement.
Our initiative leverages the extensive experience and capabilities of both SBAM and Incompass Michigan – the creativity of entrepreneurs and the private sector, together with a statewide network of human service providers – to create opportunities for more people, and meet a pressing need. We aim to empower previously disenfranchised residents, including people with dis- abilities, returning citizens and individuals facing other significant barriers to employment, by creating innovative pathways to workforce integration. This goal of a more inclusive employment landscape is ambitious, and requires intentional, focused effort.
As a result, our collaborative initiative will establish a Center for Social Enterprise Development, with a focus on expansion of employment-centric social enterprises. Social enterprises serve as pivotal agents of change, adeptly addressing pressing societal challenges while simultaneously fostering job creation, spurring economic advancement and fortifying community resilience. The Center will serve employment-centric social enterprises with direct grants, technical assistance and programming.
Through this process, employers can leverage social enterprise principles to drive positive change while achieving business success. By supporting or adopting social enterprise practices, businesses can enhance their corporate reputation, attract talent, foster innovation and contribute meaningfully to societal well-being. Embracing social enterprise positions places employers at the forefront of a movement towards sustainable and inclusive business success. We look forward to working together to achieve these goals.
To learn more about some of the Social Enterprises currently operating across the state, visit https://incompassmi.org/social-enterprises/
By Todd Culver; originally published in SBAM’s September/October 2024 issue of FOCUS magazine
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