Social Business and the Fourth Sector
Sunday, July 5th, 2009 | posted by

Where are you on the Social Business Scale?
Last month saw the first Conference on Social Business in Israel, organized by the New Israel Fund and Dualis, which took place not far from JGooders offices, in Hertzliya. Rick Aubry, President of Rubicon Programs in the San Francisco-Bay area, used a chart showing the wide spectrum covered by the term, the fourth sector.
Myriam Morgenstern, founder and director of Nogaya Women’ Collective, elaborates on the concept and how it applies to Israel, in an article on the Gvahim Non Profit and Pubic Sector Network.
Myriam writes, “As of now in Israel, the number of existing social businesses can be counted on the fingers of one hand, some of them having started as the commercial extension of an NGO in search of extra funds in a difficult economy. Yet one can easily imagine that in Israel, as in Europe or America, social business will soon attract dedicated entrepreneurs motivated by the satisfaction of providing work and thus financial independence to disadvantaged populations as well as by the freedom and challenges of running a lucrative business operation. In fact, however much you may think about it, you will be hard-up to find reasons why the two incentives should not be united. The reason why they have not been until now is what boggles the mind.”
There is already a growing fourth sector in Israel, mainly at the “Social Enterprise” and “Non-profit with Income-Generating Activities” end of the spectrum. Many non-profits, particularly those serving special needs adults and the elderly run cottage industries selling hand-crafted items produced by their communities. Another example of a social enterprise is the Kishorit Organic Goat Dairy.
Social Businesses, such as JGooders, are far rarer. As we step forwards in this very new field in Israel, we hope that others feel encouraged to follow us.


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