Social Entrepreneurship

• Business on its own is already a powerful force for change. It gives employment to people, provides goods and services that are critical for the economic development of nations, and in some cases, even spurs the government to improve its laws and infrastructures.
• When business and a desire for social justice combine, the result can truly be life-changing. Social enterprises are changing the way business is done to take on social problems, improve communities, and protect the environment.
• Commercial entrepreneurs


  Might come out with the same result (i.e., solving a social problem), but that is not its main goal
• Social entrepreneurs


  Will want to go deeper into issues that speak to them, dissecting the social, economic, political, and cultural context of the problems that they are attempting to solve
• Social Enterprise


  A kind of entrepreneurship that attempts to use business techniques in tackling social, cultural, or environmental problems
• Differentiating a Social Enterprise from a Commercial Enterprise and a Non-profit/Charity

  • Social Enterprise
  • Commercial Enterprise
  • Non-profit/Charity
• Advantages of creating a social enterprise for the Entrepreneur

  • BPI Foundation which held the BPI Sinag Challenge supports aspiring social entrepreneurs
  • One of the 10-point economic agendas of the Duterte administration is devoted to the development of micro and small entrepreneurs
  • Rajo Laurel - well-known style icon and designer, shared design skills with the women of the Payatas Community who make the bags for Rags2Riches
• Community Enterprises


  • Rags2Riches was founded in 2007 by a group of students who visited Barangay Payatas in Quezon City
• Social Firms


  • The Paper Project is a company that employs women survivors of human trafficking and sexual abuse in the Philippines
• Cooperatives


  • Asiapro Cooperative which made of self-employed and non-regular workers and professionals, all of whom are co-workers of the cooperative
• Credit Unions


  • Established in 1989, Capital Credit Union is a member-owned, community-based financial organization
• Community Development Finance Institutions

  • Grameen Bank was established to provide credit and banking services to the rural poor of Bangladesh
• Development Trust

  • Gawad Kalinga is an enterprise that began with the goal of building decent homes in slum areas, transforming what used to be places of crime and violence into peaceful and productive communities
• Public Sector Spin-outs

  • The HCT Group, an award-winning social enterprise founded in England, delivers transport services all over London and in Yorkshire
• Trading Arms of Charities

  • The Focolare Carpentry Training Center (FCTC), under the Focolare Movement for Men, Inc., teaches Filipino out-of-school youth to create beautiful and world-class furniture
• Fair Trade Organizations

  • The Body Shop is a company known for advocating fair trade. One of its suppliers is the Eudafano Women's Cooperative in Namibia (in Africa)
• Based on Profit Model

  • Subsidized Social Enterprises
  • Self-sustaining Social Enterprises
  • Profitable Social Enterprises
• While many social enterprises start as subsidized, the objective of most is to become profitable businesses that can stand on their own. Proving that your model is viable attracts even more investors and traditional business owners to take notice of your cause and give support through either the funding of further development or establishing their own business with a similar goal.
• What Makes a Business a Social Enterprise?

  1. Have a solid grasp of the social/environmental/cultural problem that it wishes to address; 2. Generate the majority of its income through trade; and 3. Reinvest the majority of the profits to further its shared mission and purposes.
• Getting Started with Your Business Plan


  • Where do you get the funding? (Grants, Venture Philanthropy, Crowdsourcing/Crowdfunding, Debt Finance)
  • What are your hiring needs?
  • How do you promote your organization?
• A successful social enterprise must: 1. Be able to keep its customers happy; 2. Be able to shape their message or band to fit its target market; 3. Have the right mix of price and presentation of the product/service; 4. Know how to negotiate good deals; and 5. Be able to uphold the quality of its products and services and must deliver them to the customer promptly.
• Commercial business
• Commercial Business: Fund - Own capital, Success - Stability and Profitability, Purpose - Generate Profit
• Social Enterprise: Fund - Own, grants, or donations, Success - Social Impact and Profitability, Purpose - Sustainable, Profitable, and Impactful
• Charity: Fund - donations, Success - Impact, Purpose - Benefit Society
• Community enterprise - serve a particular geographic location where the community sits at the board
• Social firms - enterprise that caters to those who find it difficult to enter the job market
• Cooperatives - owned, controlled, and run by members
• Credit-Unions - Community-based financial institutions for loans and credits to its members
• Community Development Finance Institutions - loans and grants for social enterprises
• Development Trust - ownership and management of property
• Public Sector Spin-Outs - deliver services that were previously provided by government
• Trading Arms of Charities - undertake trading activity to raise money
• Fair Trade Organization - ensure producers are fairly paid
• Subsidized Social Enterprise - relies on donations and grants
• Self-Sustaining - covers operational costs through revenue
• Profitable - operate with an income
• Grants - non-repayable funds granted to another entity
• Venture Philanthropy - investors or partner organization
• Crowdfunding - individuals can support