Social Enterprise (Social Entrepreneurship)

Assembled by Carter McNamara, MBA, PhD

"Nonprofits have to recognize that they're businesses, not just causes. There's a way to combine the very best of the not-for-profit, philanthropic world with the very best of the for-profit, enterprising world. This hybrid is the wave of the future for both profit and nonprofit companies."
-- From "Genius At Work" - an interview with Bill Strickland, CEO of the Manchester Craftsmen's Guild and the Bidwell Training Center Inc.

The nonprofit environment has changed.

  • Community needs are growing in size and diversity.
  • More nonprofits are competing for government and philanthropic funds.
  • Traditional forms of funding are becoming smaller and less reliable.
  • New for-profit businesses are competing with nonprofits to serve community needs.
  • Funders and donors are demanding more accountability.

"In the face of this new reality, an increasing number of forward-looking nonprofits are beginning to appreciate the increased revenue, focus and effectiveness that can come from adopting "for profit" business approaches. Increasingly, they are reinventing themselves as social entrepreneurs, combining "the passion of a social mission with an image of business-like discipline, innovation, and determination."
-- From "The Meaning of Social Entrepreneurship" by J. Gregory Dees.

Sections of This Topic Include:

Basics and Definitions of Social Entrepreneurship
Reasons for Social Entrepreneurship
One Type of Social Entrepreneurship: Earned-Income Generation
Another Type of Social Entrepreneurship (or Fundraising?): Cause-Related Marketing
Yet Another Type of Social Entrepreneurship: Venture Philanthropy
Becoming a Social Entrepreneur
Various Organizations and General Resources

NOTE: The above organization of information in this topic is but one approach. Andy Horsnell, social enterprise consultant, also suggests organizing information into:
1) Nonprofits doing business - This camp is broken down into two perspectives: mission-related and unrelated. Venture philanthropy is a way to fund either kind of activity.
2) Social innovation - Coming up with new and novel solutions to social and environmental issues, which may or may not involve a business enterprise.


Basics and Definitions of Social Entrepreneurship

Social Enterprise Defined
Frequently Asked Questions About Nonprofit Enterprise
Social Enterprise Lexicon
Social Enterprise Topology


Reasons for Social Entrepreneurship

Background on Social Entrepreneurship
Social Entrepreneurship: The Double Bottom Line
The Nonprofit's Motive
The Citizen Sector: Becoming as Entrepreneurial and Competitive as Business
A Level Long Enough to Change the World
Flashes of Genius


Nonprofits Doing Business: Earned-Income Generation

a definition of earned income (scroll down the page)
Nonprofits Can Generate an Earned Income
The Case for Supporting the Earned-Income Activities of Nonprofits
A Diversified Approach to Self-Financing: A Case Study of Hogar de Cristo
Social Entrepreneurship and Earned-Income Strategies: The Next Wave

Additional Resources About Earned-Income Generation

Also Learn About Nonprofit Business Planning
Earned-income generation often includes developing a nonprofit business plan. The Library includes extensive resources about nonprofit business planning.
Nonprofit Business Planning

Online, Free, Forum for Those Interested in Social Enterprise
Here is a free, online forum with 1,000s of participants, including experts, practitioners, researchers, etc.
npEnterprise Forum


Social Innovation: Cause-Related Marketing (method of fundraising)

Cause-related marketing is really a fundraising strategy, where a nonprofit "sells" the rights to use its seal of approval and/or brand to a corporation that can increase its sales through an association with that nonprofit. Many believe that cause-related marketing is more of a fundraising strategy than a strategy of social entrepreneurship.

What is Cause-Related Marketing?
Cause-Related Marketing May Be the Key to Your Target Market
Cause-Related Marketing
Numerous Articles on Cause Marketing Best Practices
a bibliography on cause-related marketing
Show Your Business Heart With Cause Marketing


Social Innovation: Venture Philanthropy

Social Enterprise Meets Venture Capital
Does Venture Philanthropy Work?
Venture Philanthropy -- the Changing Landscape
High-Engagement Philanthropy: A Bridge to a More Effective Social Sector


Becoming a Social Entrepreneur

Moving Toward the Market: Nonprofit Enterprise in a Changing World
What is a Social Entrepreneur?
25 Entrepreneurial Death Traps


Various Organizations and General Resources

Stanford's Educational Resources
FAQ from npenterpise online group
Directory of Social Enterprises
Miningco on Social Entrepreneurship
Social Entrepreneurship Toolkit
Ashoka -- Innovators for the Public
Community Wealth
Roberts Enterprise Development Fund
Social Enterprise Alliance
Social Venture Network
The Initiative on Social Enterprise at Harvard Business School
Social Enterprise Coalition
Social Enterprise Magazine
Social Entrepreneurship Resources and Links
Social Entrepreneurship Resources
Social Enterprise Reporter's list of academic programs
Social Entrepreneurship: Innovative care for the elderly


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Vast, Additional Resources in the Category of Social Entrepreneurship!

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