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The Sedge 37 Comments January 17, There are several ways you can go about searching for social enterprise business ideas. Creating a social business has many similarities to building a traditional business, but inspiration is usually drawn from a different place.
Social enterprise ideas, unlike conventional business ideas, typically result from a desire to solve a social need; similar to how many non-profit and charity organizations find their beginning. Traditional business ideas can also come from identifying a social need. But, the difference between a social enterprise idea and a traditional business idea is the motivation of the entrepreneur.
The primary motivation for a traditional entrepreneur is more-often-than-not a desire to make money; a social entrepreneur is driven more by a passion to solve a social problem, and only chooses to use business as a mechanism to solve these problems. Because of the different motivations that drive the two types of entrepreneurs, we must consider that their businesses will function a bit differently.
We often hear the business world talk about focusing on the bottom line business practices that lead to increased monetary profitability. In comparison, social businesses focus on double — or triple — bottom line business practices that lead to social, environmental AND economic profitability.
So how do social enterprises create double and triple bottom line profit? Here are some of the most common frameworks we see successful social enterprises using: Cross-Compensation — One group of customers pays for the service. Profits from this group are used to subsidize the service for another, underserved group.
Fee for Service — Beneficiaries pay directly for the goods or services provided by the social enterprise. Employment and skills training — The core purpose is to provide living wages, skills development, and job training to the beneficiaries: Market Intermediary — The social enterprise acts as an intermediary, or distributor, to an expanded market.
Market Connector — The social enterprise facilitates trade relationships between beneficiaries and new markets. Independent Support — The social enterprise delivers a product or service to an external market that is separate from the beneficiary and social impact generated.
Funds are used to support social programs to the beneficiary. Cooperative — A for-profit or nonprofit business that is owned by its members who also use its services, providing virtually any type of goods or services. Social Supermarket Business Model: Community Shop — Create a food market that sells food to low-income communities at a discounted price.
Discounted food is donated or purchased very cheaply from food suppliers and other supermarkets, who cannot sell the food themselves for a variety of reasons such as approaching expiry dates, dented cans, and product mislabeling. Cross-compensation and Independent Support.
Students donate their used textbooks. ArtZoco and eBatuta — Help underserved artisans sell their products to the world by building a platform that makes it easy for them.
Artisans can either manage their online store directly, or the platform can act merely as a listing service that connects the artisans face-to-face with buyers. Revenue is created by either charging listing fees directly to the artisan, via a commission on goods sold, or built-in as a premium fee to the buyer.
Profit generated can be used to fund social services that directly affect the artisan communities. Sustainable Water Business Model: Water Health International — Build small water purification stations in communities in developing countries using off-the-shelf products.A business planning guide to developing a social enterprise “Senscot has been promoting the need for clear and concise business advice to emerging social enterprises for a number of years.
Business Plans: social enterprise business planning guide Skip to main content Search the history of over billion web pages on the Internet.
Social Ventures Australia has compiled this thorough business planning guide, detailing the specific things you need to consider when building a social enterprise, as opposed to a straightforward commercial business.
Developing a Social Enterprise Business Plan February 11, Margot Dushin, HBS Social Enterprise Initiative business training and other financial services – to work their way out of poverty. • Tackling youth unemployment in West Africa. • Connect people through lending to alleviate poverty.
SOCIAL ENTERPRISE BUSINESS PLANNING GRANT Overview This category has two purposes: 1. Assist existing local social enterprises to engage professional services that can assist.
A GUIDE TO FINANCE FOR SOCIAL ENTERPRISES IN SOUTH AFRICA Researched, compiled and written Prepare A Compelling Case For Your Enterprise Write A Strong Business Plan • Converting an established business into a social enterprise - .