#10. Why do we fall?

Got this article off The Guardian.

The article discussed the vulnerability of social enterprises as more charities with SE arms start to close down. 

The example stated in the article was a training kitchen called Hoxton Apprentice, which is kinda like Jamie Oliver's Fifteen. It aims to train the severely unemployed with front and back of house skills, enabling them to find jobs in restaurants and hotels. 

Many graduates managed to move on to greater jobs, securing prestigious positions in Buckingham Palace, Gordon Ramsay and the Hilton. Its success rate is 70%, which is really high actually!

Why then did they fail? 

Hoxton Apprentice offered a 6-month long period of on-the-job training, following the Fifteen model. But while JO's kitchen has been deemed a successful SE, Hoxton Apprentice had to close down,

I believe the crux lies in that both SEs were funded by a charity.

I firmly believe that SEs should be self-funded. Receiving loans are fine, because normal businesses too get loans too, and SEs are businesses; but there should never be handouts.

In the case of Hoxton Apprentice, it was too reliant on its supporting charity-Training for Life. Therefore once the charity ceased to exist, the "SE" had no choice but to close down. In my opinion, such a model doesn't make a SE. SEs should support charities and not the other way around.

Also, Hoxton Apprentice was reliant on funding from then deputy Prime Minister John Prescott, having supplementary finances from the PM also crippled this SE.

Gordon D'Silva, the co-founder of Hoxton Apprentice mentioned that "the changing funding climate had played a part in its demise" I believe that no business can escape from the fluctuation in the spending power of consumers, however, I believe this is something important social entrepreneurs need  to keep at the back of their heads. An SE must never rely on organisations to fund them through these difficulties, they are a business not a charity. 

(aw genial ol' Alfred)

But as the kindly butler Alfred reminds his ward Bruce Wayne:

 "Why do we fall sir? So we might learn to pick ourselves up"

 {BATMAN!!}

Yep! Through all these experience, we can learn how to become better social entrepreneurs!