A business model with the objective of solving social issues and problems while providing goods and services. It is driven by a cause or purpose as well as the need to address an issue or problem. Profit is not the first priority.
Social enterprises
HAPINOY - conceptualized by Senator Bam Aquino and Mark Ruiz to provide assistance to sari-sari-store owners
RAGS2RICHES - assisted the women of Payatas by teaching them to weave rugs, bags, wallets, and other products out of scraps of cloth
Microfinance institutions, banking services, and educational programs in poor communities
Principles of social enterprise
Motivated by a cause
Financial and economic sustainability in the long term
No dividend for investors
Profits generated remain
Sensitive to gender and environmental issues
Employees are treated fairly
Joy in every task
Social business model
A framework that a social enterprise follows to fulfill its mission and maintain its financial stability
Types of social business models
Entrepreneur support model
Market intermediary model
Employment model
Fee-for-service model
Low-income client model
Cooperative model
Market linkage model
Service subsidization model
Organizational support model
Methods of income generation for social enterprises
Fee-for-service
Products
Services
Membership dues
Tangible assets
Intangible assets
Investment
Types of social enterprises
Community enterprises
Social firms
Cooperatives
Credit unions
Community development financial institutions
Development trusts
Public sector spin-outs
Trading arms of charities
Fair trade organizations
Social entrepreneurs
Individuals with innovative solutions to society's most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change.
Social entrepreneurs in the Philippines
Tony Meloto - founder of Gawad Kalinga
Camille Meloto and Anna Meloto-Wilk - founders of Human Nature