What is it about?
This paper examines the notion that a social enterprise may be a way to more equitably maintain the delivery of desired social services while also helping to balance public budgets.
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Why is it important?
Charitable organizations have long been held out as separate from other human endeavors. One of the ways that this distinction has been maintained is through the use of a tax exemption. However, difficult economic times have caused state and local governments to search for additional revenues to make up for budget deficits. Reducing or eliminating these tax breaks without a thoughtful plan for transition would pose significant risk to the many fine social benefit programs currently being delivered by the traditional non-profit sector. Social Enterprise may allow for a reasonable compromise that eases the strain on public budgets without destroying the social support system that the non-profit community provides.
Perspectives
This paper will suggest that the social enterprise may serve as a way to reconcile the tension between society’s desire to care for the less fortunate and the need to relieve some of the pressure to reduce spending that federal, state and local governments are currently experiencing.
Dr J. Howard Kucher
Stevenson University
Read the Original
This page is a summary of: Social enterprise as a means to reduce public sector deficits, Journal of Entrepreneurship and Public Policy, October 2012, Emerald,
DOI: 10.1108/20452101211261426.
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