Business Beyond Profit Motivation

By. Tr. Dolly Almonte

INTRODUCTION:
At present, a social enterprises is defined as a kind of
entrepreneurship that attempts to use business techniques in
tackling social, cultural, or environmental problems.
While the success of a typical business is measured in
profit and revenues, social enterprises also take into account
the contribution of the business towards positive societal
goals.
In order to determine if you or your business ideas can
be a social enterprise, you must first understand how is
different from a regular business.
Why Social Enterprise?
SOCIAL ENTERPRENEURSHIP :
- arechanging the way business is done in order to take on
social problems, improve communities, and protect the
environment.
Social Entrepreneurs, on the other hand ,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.
Differentiating a Social Enterprise from a Commercial Enterprise and a Non-
profit / Charity
Business Social Enterprise Nonprofit/ Charity

Capitalization
How will the venture be From own savings, bank Initial capital may come From donations or
founded loans other financial from own savings but Sponsors
institutions may also be sourced
from grants,
“crowdfunding”and
donations

Measures
How do you measure Financial stability and Profitability but also Social or Environmental
the success of the profitability social and impact
venture environmental impact

Purpose
What is the main goal To generate profit To be financially Benefit Society
of the venture sustainable but also
have a positive impact
towards the chosen
cause.
Crowdfunding is the practice of providing funds for a project venture by
pooling many small amounts from a large number of people.

What are the advantages of creating a social enterprise for the

Entrepreneur?
1. The ease of raising capital- Many governments ,special interest group, and the
advent of technology and social media have made it easier for social
entrepreneurs to raise capital.
2. The ease of marketing and promotion- Since a social enterprise is offering a
solution to a social problem, it is easy to attract people and the media. Even
governments are very eager to support social entrepreneurs because of the
positive mileage it garners.
3. The ease of attracting talent and like – minded individuals- Because of the
social side of the enterprise, it is easier to get support from talented
individuals who believe in the enterprise’s cause.
 TYPES OF SOCIAL ENTREPRENEURSHIP
BASED ON SERVICE:
1.Community Enterprise are businesses that serve a particular geographic community
or community of interest and have representatives from the community that sit on the
board of directors.
2.Social Firms are enterprise that seek to place people might otherwise find it difficult
to enter the mainstream job market, such as those with learning difficulties or mental
health problems.
3. Cooperatives are organizations owned, controlled, and run by it’s members.
4.Credit Unions are community-based financial institutions that provide savings loan
facilities for it’s members.
5.Community Development Finance Institutions Provide loans and other types of
investment to support social enterprises and other small businesses.
6. Development Trust aim to develop a community through the ownership and
management of property.
7. Public Sector Spin-Outs are independent social enterprises that deliver services that
were previously provided by the public sector organizations.
8. Trading Arms of Charities are set –up to undertake trading activity in
order to raise money for its charity parent company.
9. Fair Trade Organizations are companies committed ensuring that
producers are paid a fair price for what they produce.

BASED on PROFIT MODEL

1. Subsidized Social Enterprises are a subsidized social enterprise is
more conventional type , where in the business relies in funding,
grants, donations, and other forms of traditional funding to pay for
operational costs.
2. Self- Sustaining Social Enterprises are self-sustaining social
enterprises, on the other hand, do not receive grants and are able to
cover operational costs through the revenue generated by its sales.
3. Profitable Social Enterprises operate with an income and are
considered profitable.
SETTING UP a SOCIAL ENTERPRISE
 WHAT MAKES A BUSINESS A SOCIAL ENTERPRISE ?

In the Philippines, it is not an option for your register your business as a social enterprise.
When you apply for a business permit, you cannot simply check a box that categorizes you
as a social enterprises.
To be classified as a social
enterprise, the business must :
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 stated mission and
purpose.
If all of these are in place, then the
business is operating as a social
enterprise.
GETTING STARTED WITH YOUR BUSINESS PLAN:

1.Where do you get your funding ?

Many Social Enterprise need to get outside help in order to get their business
off ground. These are some ways by which social Entrepreneurs get hold of much-
needed capital.
a. Grants – are nonpayable funds disbursed by an organization or
individual (called grantor) to another entity ( most often a non profit school,
business, or individual) for specific purpose.
b. Venture Philanthropy- provide funding to start-ups that have a more
social purpose. Venture Philanthropy is that the organizations are given clear
performance expectations. Support typically lasts three to five years, with the
end goal of helping organizations become fully self- sustaining by the end of the
funding period.
c. Crowdsourcing/ Crowdfunding- The crowdfunding platform charges a
minimal fee for the amount that is collected.
d. Debt Finance –This the traditional means of acquiring capitalization
wherein an individual/ organization borrows money from a lending company (i.e.
bank)
2. What are your hiring needs?
A start-up social enterprise still needs people to help manage the
business. If you can get individuals who would love to contribute to a cause, on
a part-time or per project basis, there is a good chance you can solicit their
help simply by getting in touch with them.

3. How do you promote your organization ?

A good Social Enterprise should promote itself by partnering with the
right media. With the internet, it is easier to reach more people via your own
website, blog or social media page.
A Successful Social Enterprise = A Successful Business

 be able to keep the costumers happy;

 to shape their message or band to fit its target market;
 have a right mix of price and presentation of the product /
service;
 know how to negotiate good deals; and
 be able to uphold the quality of its products and services and
must deliver them to the customer in a timely manner.