<S>A social enterprise combines business principles with social good by offering innovative goods and services to address significant societal problems.
Social entrepreneurship focuses on citizens building or transforming institutions to advance solutions to social problems, aiming to make life better for many by addressing issues like poverty, illness, illiteracy, and corruption
Social enterprises include both nonprofit and for-profit organizations that aim to deliver a double bottom line – financial and social returns
Social return on investment refers to the quantifiable social impact of a venture
Types of social enterprises include nonprofits with income from products/services supplemented by external support, nonprofits with income not supplemented by external support, and for-profit companies generating financial return while creating social outcomes
To judge the social enterprise track entrants, one must consider traditional business criteria as well as socially specific assessments, such as the integration of social and financial missions and the potential to achieve both goals simultaneously
Classifying a social enterprise involves characteristics like having a social purpose, engaging in trading activities to achieve social goals, not distributing profits to individuals, and holding assets for community benefit
Entrepreneurship is the act of building and creating a business enterprise.
Entrepreneurship is a process of doing something new (CREATIVE) and something different (INNOVATIVE) for the purpose of creating wealth for the individual and adding value to society.
An entrepreneur is an innovator who creates economic opportunities through the creation or expansion of businesses.
Traditional Nonprofit Activities is defined as Tax-exempt, mission-related activities that are not commercially motivated
Traditional Nonprofit Activities' objective is Social return on investment through achievement of mission
Nonprofit Earned Income is defined as Business activities that generate earned income to support a nonprofit mission
Nonprofit Earned Income's objective is Financial and social return on investment
Businesses with Social Outcomes is defined as A for-profit company that pursues financial return and simultaneously generates social outcomes
Businesses with Social Outcomes' objective is Financial and social return on investment
Traditional Business Activities is defined as Activities motivated by the primary purpose of returning profits to shareholders
Traditional Business Activities' objective is Financial return on investment
Traditional nonprofit activies' example companies are:
Mercy Corps
American Cancer Society
Nonprofit Earned Income's example companies are:
Greystone Bakery
Pioneer Human Services
Businesses with social outcome's example companies are:
Edison Schools
Micofinance
Solar/green power cos.
Traditional Business activies' example companies are:
General Motors
American Express
Traditional Nonprofit Activities and Nonprofit Earned Income are conducted by Nonprofit Organizations
Businesses with Social Outcomes and Traditional Business Activities are conducted by For-profit Organizations
Social Enterprise Track with mission-focus
Traditional Nonprofit Activities
Nonprofit Earned Income
Social Enterprise Track with profit-focus
Businesses with Social Outcomes
Traditional Business Activities
Social enterprises are defined as nonprofit or for-profit business ventures that strive to achieve a quantifiable double bottom line of financial and social returns. These ventures are financially self-sufficient.
Double Bottom Line:
Social return on investment
Financial return on investment
Social return on investment is a quantifiable social impact of the venture.
Social return on investment is a double Bottom Line with aims for social impact.
Financial return on investment is a double Bottom Line with aims for profitability.
Types of Social Enterprises
Nonprofits with income from products/services supplemented by external support and subsidies
Nonprofits with income from products/services not supplemented by external support and subsidies
For-profit company that pursues financial return and simultaneously generates social outcomes
To judge the social enterprise track entrants, one has to consider traditional business criteria as well as socially specific assessments
Traditional Business Criteria
Social Enterprise Track Criteria
Traditional Business Criteria (in line with UH’s current judging criteria)
Feasibility of business model in chosen marketplace
Marketability of product or service to customer base
Potential for financial return
Attractiveness for funding from additional investors
Management team strength, experience, and readiness
Sophisticated understanding of risk and contingency plans
Social Enterprise Track Criteria
Integrationoftheventure’s social and financial missions
Is it reasonable to expect that the financial and social goals can be achieved simultaneously? Do these goals make sense together?
Social Return on Investment
How does the enterprise serve a social purpose.
Are socially responsible core values expressed throughout the venture.
What is the venture’s potential to meet its social goals.
What is the social impact both monetized and non-monetized of this enterprise?
Classifying a Social Enterprise:
Having a social purpose
Engaging in trading activities to achieve social purpose (at least in part)
Not distributing profits to individuals
Holding assets and wealth in trust for community benefit
Democratically involving members of its constituency in governance of organisation
Independent organisation with accountability to defined constituency & wider community
The phrase: “Six defining characteristics and values of social enterprise” was coined by (Pearce, 2007)