Social Entrepreneurship Business Models

Inc Magazine lays out some social entrepreneurship business models. What do you think? (the article goes into more detail on each type of social venture).

The Social Entrepreneurship Spectrum: B Corporations

To become B Corps, businesses must prove that they care as much about society and the environment as they do about profits.

The Social Entrepreneurship Spectrum: Nonprofits

Nonprofits are fueled by tax-deductible donations—cash from individuals, public grant funding, or money from foundations. As of 2010, nearly 1.3 million 501(c)(3) organizations were registered with the IRS; they raise more than $300 billion in charitable donations a year.

The Social Entrepreneurship Spectrum: Nonprofits With Earned Income

A 501(c)(3) nonprofit can still generate earned income. And plenty do. The National Center for Charitable Statistics estimates that nearly 70 percent of the $1.4 trillion generated by nonprofits in 2008 came from the sale of goods and services.

The Social Entrepreneurship Spectrum: Hybrids

In the hybrid model, a nonprofit and a for-profit are linked. In some cases, one is a subsidiary of the other; in others, the two entities are bound by long-term contracts in which one entity fulfills a basic need for the other and vice versa.

The Social Entrepreneurship Spectrum: Impact Investors

All investors obsess about returns. But for impact investors, ROI is an especially tricky matter, because in addition to financial success, they are seeking social and environmental results.

The Social Entrepreneurship Spectrum: For-Profits With a Social Mission

For some businesses, social impact can be measured by the size of the checks they write. For others, the mission is woven directly into the business.

Are these all the models? What are some others that you believe fall under the umbrella of social entrepreneurship  – #socent #dogood #socialinnovation

via Social Entrepreneurs 2011: How a Business Can Change the World.

One thought on “Social Entrepreneurship Business Models

  1. Non-profit social entrepreneurs often struggle to scale up their innovations without adequate access to the growth capital, distribution systems and infrastructure readily available to conventional businesses. Rather than accepting these limitations, many are increasingly pursuing hybrid models that draw from the best of both worlds, incorporating traditional business structures and strategies to achieve a social bottom line.

    Thanks for the information,

    Juan

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