Neilson & Samia (2008) state that social enterprise development is important in addressing some of the challenges for local businesses in developing countries, such as the Philippines. These models identify the transformation in individual lives and communities that come along with increased incomes and self-reliance among the disadvantaged populations. In reviewing past studies in other locations, Neilson & Samia (2008) say, “results do indicate that economic development and social transformation are interconnected…” (p.448). For a country which has suffered hundreds of years of colonial trauma, as well as trauma under the dictator Marcos, and now the extra-judicial violence and authoritarian policies of President Duterte, and again in dealing with multiple losses of homes and lives from repeated typhoons, social transformation is a method to both increasing economical stability can also address issues of trauma, for example as through empowerment. However, there has been limited research on these models, especially in the Philippines, as of the publication date of 2008 (Neilson & Samia, 2008). The Philippines has expressed a desire to reach “developed country status by 2020” (Neilson & Samia, 2008, p.447), which has clearly not materialized, but knowing that this is a goal for the country helps gain momentum on projects which aim to support local businesses.
As seen in the case study of Nelly Nacino’s social enterprise system in the Philippines (Neilson & Samia, 2008), many branches and webs are required to sustain a business model, with multiple projects, in conjunction with parts of the government, groups of subcontactors addressing different roles, and development of assistance of other organizations. Because of the collective nature of the Philippines, this seems especially relevant, and it seems they all must find a multitude of ways to fund themselves and create opportunities. Use of tools such as microfinancing and allowing employees to take loans which they can pay back as they are able for the equipment they need allow for individuals to find employment in areas where they might not have been able to otherwise. Training and education should also be a part of the model, to continue to promote from within and to also assist in recruiting newcomers, ultimately seeking to benefit a whole community of people rather than an elite few. Initial capital funding, motivated entrepreneurs, and training in leadership and management are needed to begin such a business.
SAFFY/ SAFRUDI (SAFFY, 2019) represents a sustainable business model in the Philippines which is also working in supporting trauma-based initiatives. They provide a network through which individual merchants and artisans can produce their goods, which are then sold in bulk to an international market. This means that these producers are able to have a reliable, consistent income that runs at a higher price than they would get for their goods at local markets. Strictly adhering to the principles in the WTFO Fair Trade principles means that SAFFY ensures that they make sure producers have good working conditions, providing training, workshops and conferences for local producers, transparency with local producers as well as with their trade partners in all aspects of business, and assist the producers in being environmentally responsible, among other aspects. All of these factors means that opportunity is created for local Filipinos who might not otherwise be able to make a living while supporting their artistic and cultural work, which enhances the livelihoods of individuals and families, and ripples into creating sustainable models and increased economies in local communities. Furthermore, SAFFY works to provide a layer of protection for the producers, such as continuing to provide funds and capital for them during COVID, shielding them in some regards from the devastation and subsequent traumas of the pandemic.
References
Nielsen, C., & Samia, P. M. (2008). Understanding key factors in social enterprise development of the BOP: A systems approach applied to case studies in the Philippines. Journal of Consumer Marketing, 25(7), 446-454. doi:10.1108/07363760810915662
SAFFY. (2019). About Us. http://www.saffyinc.com/about-us/