Meetings of National Housing Research Committee NHRC Working Groups. Ownership shares may also be distributed to the target population as part of the social model. The Sri Lanka-Pakistan Free Trade Agreement SLPKFTA www. Apart from garments, the country still exports primarily the same goods as during the colonial and post-colonial era, i. Pro Mujer also provides health education, and links women and their families to health services. This video has information on Ontario's Human Rights Code and how it applies.

If needed, you can display the entire typology in a printer-friendly format. This typology breaks down the traditional boundaries between the nonprofit and private sectors and draws definition to this new institutional animal--part business-part social--the social enterprise. In doing so, the typology explores how institutions have combined a mix of social values and Pwr with commercial business practices and how they have come up with ownership models, income and capitalization strategies, and unique management and service systems designed to maximize social value.

The illustrative typology classifies different models of social enterprise in order to navigate readers through the currently ill-defined, diverse and dynamic landscape of this emerging field. This typology is an outgrowth of a paper commissioned by the Inter-American Development Bank in entitled: "Social Enterprise: A Typology of the Field Contextualized in Latin America. PDF Per capita income and the extensive margin of bilateral trade typology is a work in progress, and will be updated with new models, examples, and case studies.

We invite you to send us your comments and examples of your social enterprises that we can include here. This work is licensed under the Creative Commons Attribution-Share Alike 3. Kim Alter has endeavored to bring business practices to nonprofit organizations and international development agencies, encouraging their sustainability through earned income, in more than 30 countries worldwide for over a dozen years.

She is founder and Principal of Virtue Venturesa trzde consulting firm specializing in social enterprise. Kim is author of Managing the Double Bottom Line: A Business Planning Guide for Social Enterprises Pact Publishers and contributing author of Generating and Sustaining Nonprofit Income Jossey-Bass Web and document designs are by Vincent Dawans from Virtue Ventures.

The typology is organized in five main sections that can be read in any order based on the reader's interest and familiarity with the subject. The first section introduces the subject with various definitions of social enterprise, a history in briefan overview of the field's current state and outlook as well as a discussion on the evolution of the field toward an integrated approach. The second section puts the social enterprise field in context. It starts by organizing practitioners on a spectrum by their philanthropic versus their commercial orientation.

The third section presents several ways of classifying social enterprises, either based on their mission orientationbased on the level of integration between social programs and business activitiesor based on the nature of their target market. The fourth section presents several common social enterprise operational models grouped into three main structural categories which cover a wide range of interplay between several variables, such as clients, market, social service programs, mission orientation, financial objectives, etc.

Finally, the fifth section examines social enterprise structures as they relate to ownership PPer legal status. Without the support provided by the Inter-American Development Bank this work simply oc not have been possible. Specific thanks are owed to Alvaro Rameriz, Division Deputy Chief and Jacqueline Bass, Senior Advisor for Micro and Small Enterprise, the Inter-American Development Bank, who provided the foresight and leadership to instigate this typology, labored over the cases, and tirelessly read and commented on the paper in its various incarnations.

I would like to thank and acknowledge the contributions of the following individuals who agreed to review and provide feedback on this paper. Each one is a respected leader and major contributor to the social enterprise and international economic hrade fields; their thoughts, ideas, words, and previous work laid the foundation for this piece. Additional thanks are owed Lee Davis and Nicole Etchart for sharing cases from the NESsT portfolio, and to Jed Emerson, who kindly agreed to write the foreword.

Special recognition goes to Vincent Dawans from Virtue Ventures for his contributions to sections on impact measurements and graphical representations. Finally, much gratitude is due to Laura Brown, faithful editor, who willingly took this paper in its original incarnation on her vacation. The Inter-American Development Bank began supporting income generating nonprofit organizations and cooperatives in through its Small Projects Fund long before there was a field dubbed social enterprises.

Innargin Social Entrepreneurship Program SEPwhich replaced the Small Projects Fund, was created to promote social equity and the economic development of poor and marginal groups. The Social Entrepreneurship Program promotes business operations that generate social benefits and help community organizations encourage microenterprise development. Thus, in its year history, the Bank has supported numerous projects that fall under the rubric of social enterprise through this program.

SEP uses its resources strategically and funds a limited number of representative projects; incmoe operations must be capable of promoting learning between countries or of being emulated in other parts of the region. Government agencies, bilateral funds, and multilateral donors have joined forces with IDB and the Social Entrepreneurship Program to strengthen that assistance. Several trust funds, such as the European Union Special Fund for the Financing of Small Projects in Latin America, the European Union Special Fund for Financing Microenterprise in Latin America, the Swedish Trust Fund for the Financing of Small projects, the Norwegian Fund for Small Projects, the Norwegian Fund for Microenterprise Development, the Japan Special Fund, the Swiss Technical Cooperation and Small Project Fund, and more recently the Italian Trust Fund have contributed, channeling support to rural and minority groups, and providing technical assistance to strengthen nonprofit organizations.

The Thr Group is committed to contributing to the success of bilaterral new type of social enterprise and supporting projects that offer financial and business development services as well as social and community services in a sound, efficient, and sustainable way to benefit low-income people, indigenous groups, women, youth, and other marginalized groups. The ability to create, to break the mold, to engage in enterprise is perhaps one of the greatest attributes of humanity.

While its roots are deep in our past, over the last three decades we have witnessed an explosion of innovation as a rtade international community of individuals has experimented with a great variety of approaches to fulfilling one basic idea: Markets and business, capital and commerce matgin be harnessed not simply for the creation of individual wealth, but rather the creation of value in its fullest. These innovators incomee sought to create value consisting of equal parts equity, ecology, and economic development.

They have broken with the beliefs of traditionalists to practice a form of social enterprise that seeks to engage in the community application of business skill and acumen. These social entrepreneurs have created a rich diversity of approaches and strategies, marhin of which are now coming together within a unified, global parade. It is, however, a parade of many marchers, bands, and different colored banners. Having spent years on various side streets, the diverse parts of the parade are now flooding the grand avenue and approaching the town square, which is filled by glorious music and pageantry--and yet in the midst of the celebration we are suddenly aware we have a problem.

But too many words clashing in meaning; too many ideas promoted before having stood the test of time; and too many parts moving in a blur capiha confusion. What is needed is a way to rise above the fracas, a bilatera to help us transcend the music of our own band in order to see the breadth of the musical parade in motion before us.

What we need is a single, clear assessment of who "we" are and "what it is we are doing. Capota presenting us with a host of social enterprise models, this typology lets us see how our own approach to enterprise can be consistently defined and compared with that of others. By focusing upon the Bank's portfolio of investments in Latin and South America for examples, Kim has reminded us that the drive to enterprise is not a U.

And by approaching her analysis from the perspective of a reflective practitioner, she tells us yet again that each of us can and must learn from each other. The best lessons and experiences are in the streets, the barrios, and the rural hillsides as theory meets practice and intense labor comes to be informed by thought.

This document gathers the work of the whole and infuses it with thought in extensivf for others to learn and understand more deeply the significance of the international efforts currently in motion. Of course, the "problem" with assisting us in achieving greater understanding of the connections between our various labors is that we can no longer pretend that what we are engaged in is an "experiment" or a "demonstration project" or "proof of concept.

The "problem" with documenting an area of work so well is that we are now faced with at least two questions. First, now that the demonstration grants have demonstrated that fad is now trend and inquiry both te knowledge and expertise, we must ask: Where are the international field-building initiatives? Where is the "second tranche" of investment to take these ideas and organizations to real, meaningful scale and, thus, broader social and environmental impact?

The challenge to the funding community, both private and public, is stark: The practitioners have demonstrated both skill and informed practice. Now the funding community must follow through xetensive strategic and significant amounts of capital market-rate, concessionary, and philanthropic to assure these efforts fulfill their obvious potential.

In the words of one of my foundation colleagues, "It is time we move from our practice of 'let a thousand flowers wither' to let the best flowers bloom. Let us pray they do not stand waiting as long as it may take this report to begin gathering dust upon the shelf… But the evidence presented in this document raises another question, and this one is directed at the practitioners of social enterprise.

The second question is, quite simply: Over the past years, we have, each of us, contributed to a cacophony of concepts, terms, and ideas. We are all quite impressed with our disparate visions and intellectual approaches. And, yes, we are all quite cute and brilliant and revolutionary in our work. To be quite frank, there is a part of us dare I say a large part?

We might pause for a moment and think:. If all we are trying to do is prove we can be communists in capitalists' clothing, fine. This paper demonstrates that we have proved our point. Those who were waiting for the definitive proof may now go home… But, what if what we are really trying to do is change the world and what is really driving us to rise up early in PFD morning and fall into our dreams late at night is the vision of a genuinely transformed planet?

If that is the case, then we need to see how our exhensive consists only of divisions if one is face to face, nose to nose, and cheek extensiv jowl with the notion of social enterprise--but as we step back a bit, as we take time to ponder what we really want to see around us in 30 years time, something else becomes quite clear: The work of trare entrepreneurship and the creation of social enterprise is also the work of a for-profit manager striving to drive the practice of corporate social responsibility into her firm; and, in truth, the approach of a venture philanthropist is not six degrees removed from that of a socially responsible investor or manager of a community loan fund.

What becomes clear is that it is all the same and we are all part of a common effort to create more effective tools to maximize total value for our entire global community. The particular worth of the document presently in your hands is in some ways its simple contribution to helping us all see the parts that we are… But the true potential of this document, for practitioners and investors alike, is the fact that it points toward the inherent truth that icome of us are engaged in giving birth to ideas and skills that hold the promise of creating meaningful, full, and integrated value for investors, managers, entrepreneurs, and the future children of our world.

We must understand that defining the parts is just the first step toward embracing the whole. With this contribution capia Kim Alter and the Inter-American Development Bank now in place, we must think long and hard about how we can best bring these parts together into a focused drive toward the real, ultimate goal: the creation of sustainable economies, ecology, and equity that will be of benefit to all beings within communities and regions around the world.

Do we have what it takes to build our global communities at the same time we labor to expand our own organizations and pursue our individual strategies? Jed Emerson 1 Grand Lake, CO The purpose of this typology is to elaborate the rich mosaic of highly differentiated and creative examples of social enterprise, and by doing so, to inspire innovative approaches to create greater value for people and the planet.

The typology is also intended bliateral advance the field of social enterprise by organizing these diverse approaches and strategies into a common framework. The occupation of identifying and defining operational models as well as organizational and legal structures is to provide a conceptual framework for efforts occurring in the field. In practice, these dichotomies are increasingly coming together through the application of methods that marry market mechanisms to affect both social and economic value resulting in total PDFF creation.

The emergence and the subsequent propagation of corporate social responsibilitybusiness for social responsibility and social enterprise evidences this trend, and the social enterprise lens brings into focus this convergence through its methodological paradigm. Value creation is the backbone of social enterprise and serves as a fundamental and unifying principle between different social change and economic development approaches.

To this end, the typology is not intended to straightjacket practitioners into a prescribed set of formulas, but rather recognize and embrace the abundance of possibility under the umbrella of a larger vision. As early as The Roberts Foundation Homeless Economic Development Fund 1 defined social enterprise as "a revenue generating venture founded to create economic opportunities for very low income individuals, while simultaneously operating with reference to the financial bottom-line.

The Nonprofit Good Practice Guide offers a holistic definition: "A nonprofit venture that combines the passion cpita a social mission with the discipline, innovation and determination commonly associated with for-profit businesses [ The Coalition invites us to consider some of the common characteristics that social exhensive display: 4 The Coalition also supports the UK Government definition which many of its members were actively involved in helping to develop 5 : "A od enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners.

In its widespread usage, "social entrepreneur" is the individual and "social enterprise" is the organization. Therefore, social enterprise is an institutional expression of the term social entrepreneur. Social enterprise PDF Per capita income and the extensive margin of bilateral trade a lengthy private history, but a short public one. Nonprofit organizations have long engaged in income generation and businesses to either supplement or complement their mission activities.

Beginning in the s, US nonprofits experimented with enterprises to create jobs for disadvantaged populations. Micro-credit organizations made their appearance in developing countries by the s, at about the same time Community Development Corporations CDCs were gaining popularity in the United States. Yet it is only in the last 15 or 20 years that academics, bilareral, and donors have been studying and recording cases of nonprofits adopting market-based approaches to achieve their missions.

Social enterprise enables nonprofits to expand vital services to their constituents while moving the organization toward self-sufficiency. Nonprofit organization leaders understand that only by establishing an independent means of financing can they become a going concern. John Durand began working with seven mentally retarded people intraders edge forex reviews 9 11 Minnesota Diversified Industries is a for-profit social enterprise which employs over disabled people.

Professor Muhammad YunusHead of the Rural Economics Program at the University of Chittagong, Bangladesh, began a research project in to explore the possibility of providing banking services to the rural poor. The Grameen Bank Project Grameen means "village" in Bangla language was piloted in three villages neighboring the University with the following objectives: to extend banking facilities to poor men and bilaterap to eliminate the exploitation of the poor by money lenders; to create opportunities for self-employment for the multitude of unemployed people in rural Bangladesh; and to enable disadvantaged mostly women from the poorest households to self-manage money and business.

Based on its success, the project expanded in to several locations throughout Bangadesh including Dhaka, the capital. By Octoberthe Grameen Bank Project was transformed into an independent bank by government legislation. Today Grameen Bank serves over 2. Perhaps the roots of entrepreneurial activities in the social sector context can be drawn to cooperatives which have functioned as a means to fund socioeconomic agendas as early as the mids.

Robert Owen fathered the cooperative movement. A Welshman who made his fortune in the cotton trade, Owen believed in putting his workers in a good environment with access to education for themselves and their children. These ideas were put into effect successfully in the cotton mills of New Lanark, Scotland. It was here that the first cooperative store was opened. Spurred on by the success of this, he had the idea of forming "villages Pwr cooperation" where workers bilatera, help themselves out of poverty by growing their own food, making their own clothes and ultimately becoming self-governing.

In the tradition of their founders, cooperative members believe in the ethical values of inckme, openness, social responsibility and caring for others". Since their inception over one hundred years ago, cooperatives have become widespread throughout the world, and continue to play an important function in promoting international economic development and social justice for the poor. Cooperatives are a common form of social enterprise found in developing countries. Examples include agricultural marketing cooperatives, which market and distribute its members' products, while agricultural supply cooperatives, provide inputs into the agricultural process; both are examples of social enterprises extensove in value chain development and Making Markets Work for the Poor M4M.

Self-Help Groups SHGs comprised of low income-women, and popular in South Asia, are frequently organized into cooperatives to support a variety of their members' interests related to commerce, health and education. Credit Unions are another example of a cooperative found tied to economic development micro-financial service programs, particularly across West Africa, Latin America, and countries of the former Yugoslavia.

In the UK a slight variation on the cooperative, called mutual organizations or "societies" are commonly associated with social enterprise. Unlike a true cooperative, mutual members usually do not contribute to the capital of the social enterprise company by direct investment, instead mutuals are frequently funded by philanthropic sources or the government.

Fair Trade is another predecessor to the contemporary social entrepreneurship field. Early attempts to commercialize fair trade goods in Northern markets were initiated in the s and s by religious groups and various politically oriented NGOs. Mennonite Central Committee MCC and SERRV International were the first, in and respectively, to develop fair trade supply chains in developing countries.

Ten Thousand Villages operates as nonprofit subsidiary social enterprise of MCC. The current fair trade movement was shaped in Europe in the s. Fair trade during that period was often seen as a political gesture against neo-imperialism: radical student movements began targeting multinational corporations and concerns that traditional business models were fundamentally PDF Per capita income and the extensive margin of bilateral trade started to emerge.

The slogan at the time, "Trade not Aid", gained international recognition in when it was adopted by the United Thd Conference on Trade and Development to put the emphasis on the establishment of fair trade relations with the developing world. In the early s, to offset a decline market for handicrafts, Alternative Trading Organizations began broadening the scope of fair trade from handicrafts to include agricultural products, particularly commodities, whose spiraling prices had a dire impact on poor producers.

In Fair Trade labeling initiative was launched to promote fair trade commodities and agricultural products, followed by International Fair Trade Certification Mark in There are now Fair Hhe Certification Marks on dozens of different products, based on Fairtrade Labeling Organization's FLO certification for coffee, tea, rice, bananas, mangoes, cocoa, cotton, sugar, honey, fruit juices, nuts, fresh fruit, quinoa, spices, wince and footballs.

Prior to the s, banks "redlined" against minority neighborhoods, even to credit-worthy residents. InShoreBank founders, Ron Grzywinski, Mary Houghton, James Fletcher, and Milton Davis, with backgrounds in banking, social managed forex trading day system backup and community activism, decided to buy a bank in a disinvested neighborhood, and create complementary affiliates, focusing all of the resources on one neighborhood.

For example, Shorebank International Ltd. ShoreCap Exchange is a nonprofit capacity building company PDF Per capita income and the extensive margin of bilateral trade financial institutions ot the development finance field. It provides one-on-one capacity building to microfinance institutions and small business banks in Asia, Africa and Eastern Europe. Since, Delancey Street has successfully mainstreamed 14, former clients entirely on self-generated resources through its 20 social enterprises run entirely by clients.

The social firm model was founded on, and continues to adhere to, the following principles: over a third of employees are people with a disability or labor market disadvantage, every worker is paid a fair-market wage, and the business operates without subsidy, and has gained prominence throughout North America, Japan and Europe. The growth of the social firm movement has been aided by legislation that supports thee businesses, policies that favor employment of people with disabilities, and support entities that facilitate technology transfer.

In the mid s, REDF formerly The Roberts Enterprise Development Fund popularized this notion of social firms by experimenting with business types, operating models and target populations. REDF merged social welfare and vocational rehab creating new enterprises to employ people with barriers to employment including disabled, homeless, ex-offenders, youth at risk, etc. REDF also began applying the tenets of venture capitalism to philanthropy "venture philanthropy" to architect its funding and technical support approaches, as well as to begin measuring investor rates of return on social impact social return on investment.

In doing so, REDF created a venture portfolio of 10 employment development social enterprises 4 and published widely on tools and lessons drawn from its work with portfolio organizations. Indeed, REDF's contributions to social enterprise literature are the closest claim the social entrepreneurship field has to any one given methodology for social enterprise. The employment-model of social enterprise has been both replicated overseas by civil society organizations as well as adapted for an overseas application by practitioners of PDF Per capita income and the extensive margin of bilateral trade Markets Work for calita Poor, who are creating employment or favorable conditions for employment for particular disenfranchised groups.

Although presently few microenterprise organizations commune in the social entrepreneurship space, social entrepreneurship field views the microfinance institution MFI as a quintessential social enterprise and sees its leaders as some of the world's most formidable social entrepreneurs. From early on practitioners implemented MFIs as a mission-centric vehicle by which to achieve wide-scale sustainable social impact. Today, leaders like Mohammed Yunus are PDF Per capita income and the extensive margin of bilateral trade to build relationships between the parallel, yet separate, communities of microenteprise and ajd entrepreneurship.

Significant gains made by the microfinance industry in developing methodologies; spurring innovation; achieving scale, extenssive globally, and nurturing second and third generations of microfinance innovators and entrepreneurs, offer many valuable lessons to build the nascent field of social entrepreneurship. International microenterprise organizations that have begun to participate in social entrepreneurship forums and practice include: MEDA, TechnoServe, Grameen Foundation, Freedom from Hunger, Pro Mujer, CARE, Unitus, Oncome International, Mercy Corps, Aid to Artisans, and Conservation International, among others.

Following the collapse of the Soviet Union, countries in this part of the world experienced rapid proliferation of civil society organizations CSOstheir development aided in part by international development agencies. In the s, previously well-funded NGOs and CSOs began to confront resource scarcity due to transitional economies and shifting funder priorities, coupled with the slower than expected private sector growth, thus creating a funding gap.

Market forces galvanized practitioners to explore alternative financing approaches, recognizing that their organizations' survival rested on the ability to augment or replace grants by other means. Development agencies in the region, as well as in other transitional economies such as Latin American countries, have supported this shift toward establishing an independent means of financing.

NESsT, an early player in employing social enterprise as a means of self-financing social service organizations, adapted and replicated REDF's venture philanthropy approach and applied it to CBOs and NGOs in Latin America and Eastern Europe. Extensove addition to the establishment of income-earned ventures social enterpriseCBO and NGO sustainability strategies include: the cultivation of local philanthropy; commercialization of NGO social services fee-for-service ; cultivation of local corporate social responsibility ; and financial leveraging atc 2011 metatrader axitrader that their organizations will maargin going concerns.

Interest in the "base or bottom of the pyramid" was catalyzed by ,argin paper written by two University of Ihcome professors in In " The fortune at the bottom of the pyramid " 1C. Prahalad and Stuart Hart highlight the untapped market potential of the four billion people at the base of the economic pyramid. In this article, the global population is divided into three segments, based on purchasing power parity PPP. In the past several years, an increasing number of multinational corporations MNCs have recognized this opportunity and are making commitments to launch ventures in BoP markets.

Johnson, Tetra Pak, and Unilever. While MNC exploration of low income markets is one well-publicized "BoP strategy," several other players and approaches have also emerged. It is apparent that small- and medium-scale enterprises will play an important role in this space, and a number of development agencies have created programs to facilitate BoP-oriented SME development. CARE Canada, for example, has launched CARE Enterprise Partners, a program that looks to help bridge the gap between entrepreneurs in the informal sector and larger businesses operating in the formal sector.

Additionally, as ITC in India, DuPont in Latin America, and VegPro in Africa have discovered, the BoP is also a producer of high quality goods and services that can meet the needs of markets at both top of the pyramid and BoP markets. The Inter-American Development Bank began supporting social enterprises cooperatives and NGOs through the Small Projects PDF Per capita income and the extensive margin of bilateral trade in long before there was a field associated with these organizations.

In its year history, the Bank has supported numerous projects that fall under the rubric of social enterprise through this program. Today, social enterprise is a key IADB instrument used to drive local economic development within the context of a strategic regional vision. World Bank's Development Marketplace DMfounded by Dennis Whittle and Mari Kurashi currently CEO and President of Global Givingstemmed from the need for better implementation results on the ground, and an understanding that good ideas can come through multiple channels.

DM began as an internally-focused exercise to identify cutting-edge solutions to the most pressing social and economic lf and change World Bank staff decision-making culture, encourage risk-taking, and shorten project development and delivery. Over World Bank staff teams put forward ideas, of which 11 won awards. Inthe World Bilatwral hosted the first Global Development Marketplace DMor Global Competition. Many of GBIs investments are DM winners that have finished their start up funding awarded though the competition.

In addition to BoP strategies and social enterprises, GBI supports intermediaries that support bipateral, with appropriate financing grants and "patient capital" bilaterzl and capacity building. GBI supports some 30 projects in Africa, Latin America and Asia aiming to bring income generating opportunities and needed products and services to the poor.

GBI is currently discussing with the IFC the prospect of spinning off into a separate independent entity with significant seed capital from the IFC. In the United Kingdom Blair administration determined that social enterprises could play an important role in helping deliver on much of government's agenda by: helping to increase productivity and competitiveness; contributing to socially inclusive wealth margiin enabling individuals and communities to work towards regenerating their local neighborhoods; showing new ways to deliver and reform public services; and helping to develop an inclusive society and active citizenship.

Social enterprise is now the fastest kf sector in the United Kingdom; data from a survey conducted as part of the Global Entrepreneurship Monitor GEM suggests that new 'social startups' at a faster rate than conventional startups in the UK. In a new legal form was introduced, the Community Interest Company, which addresses from a legal perspective the particular needs of the social enterprise hybrid. Eextensive the last fifteen years, a huge amount of new wealth has been created which is influencing philanthropic giving.

This year, as never before, the line between philanthropy and business is blurring. A ARCHIVE How To Read Forex Charts generation of philanthropists has stepped bi,ateral, for the most part young billionaires who have reaped the benefits of capitalism and believe that it can be applied in the service of charity.

Now not only do they want to give their money away while living, but want to play an active role in doing so. Drawing on their success in business, new economy philanthropists apply market principles to their philanthropic efforts and view grant-making through a venture capitalist lens. They treat charity as "social investment" for which they expect to realize a measured social return and often a financial return and thus have been dubbed "venture tdade.

The first venture philanthropy fund is attributed to the Robin Hood Foundation in New York City and was founded inyet venture philanthropy as a funding approach was not popularized until the late s. Between and a groundswell of new venture philanthropy funds were endowed; several then folded in early when economic contractions reduced their asset base.

There was also a settling period when funds and foundations built their own internal capacity to deliver grants using an investor or venture philanthropist approach. In the early years, language broadened to include terms like, "strategic funder," "engaged philanthropist," "social investor," "social angel," and "philanthropreneur. The approach of "philanthropreneurs" reflects the culture of the business that brought them their wealth: information technology, with its ethos that everyone should have access to information.

By their way of thinking, the marketplace can have the same level-the-playing-field impact, and supply the world's poor with basic needs like food, sanitation and shelter. In the last ten years, "Venture Philanthropy Funds" or "Social Venture Capital Funds 3 ," nonexistent ten years ago, today have bilaterap endowments and engaged founders. Leading business innovators such as Pierre Omidyar founder of eBayGib Myer Mayfield FundLarry Page and Sergei Brin co-founders of GoogleJeff Skoll first president of eBayBill Gates, Founder MicrosoftSteve Case, co-founder of America Onlineand Klaus Schwab founder of The World Economic Forum are focusing of their giving on social entrepreneurship.

Therefore, this new type of philanthropist has become a serious contender in development funding which until recently has been dominated by governments. The market-based approaches such as social enterprise and BoP strategies make these initiatives a natural funding match for new philanthropists. In fact, it is difficult to discern whether the rise of social entrepreneurship has kids high heels size 12 the growth of venture funds or visa-versa.

Although many venture philanthropists have sector orientations, the bulk of their funding goes to support social entrepreneurship and market-based approaches, as opposed to traditional nonprofits or development projects. For example, Acumen Fund invests in water, health and housing by providing some grants, but largely loans and equity investments to social enterprises.

Multi Sector - Social enterprise transcends traditional nonprofit sectors and applies as equally to health, environment, education and social welfare as it does to economic development or job creation programs. The motivation--mission or money--for engaging in social enterprise may differs between sectors. Economic and employment development organizations are a natural fit with social enterprise, and therefore frequently integrate social PDF Per capita income and the extensive margin of bilateral trade as a program strategy.

Other social sectors tend to incorporate social enterprise as a financing mechanismthough in both cases programmatic and financial benefits can be realized. Thus, social enterprise operational models are customized to accommodate market realities, organizational capabilities and social needs. Global Application - Although contemporary methodology is credited to the West, notably the United States and United Kingdom, nonprofit businesses, self-financing schemes, and earned-income activities have been practiced by nonprofit organizations around the globe for years.

In emerging markets and transitional economies social enterprise has made the strongest showing to date. This is due in part to the rapid development and proliferation jncome nonprofit organizations, followed by a drop-off in donor support; thus nonprofit organizations have had tremendous pressure to look for alternative sources of funding or self-financing.

Developing countries, however, should not be overlooked for examples, some of the most innovative and entrepreneurial cases of social enterprise can be attributed to nonprofits operating under some of the direst circumstances. In developed countries, market economies are mature and business know-how is Pfr available, yet distribution channels may be restricted, and competition is sophisticated and well-capitalized, which poses challenges to nonprofit-run businesses.

In developing countries markets are opened but the legal environment often creates obstacles; as well, corruption and low business acumen may present constraints. Today we stand at a juncture: the market for social enterprise is vast, yet the current pool of self-identified social enterprises is small, fragmented, and somewhat elite.

A large group of nonprofit leaders and donors are either unfamiliar with the term or do not see the validity of analyzing the market for PDF Per capita income and the extensive margin of bilateral trade social enterprises. Herein lies an extraordinary opportunity to build the field. At this juncture practitioners and thought leaders alike are working to advance this emerging field, distilling "good practices" and sharing lessons among organizations committed to developing the social enterprise practice.

Practitioners globally agree however that they lack access to sufficient funding. Although social investors bilaetral foundation Program Related Investments PRI that fund social enterprise endeavors are on the rise, for the majority of social enterprises operating in other program areas, access to capital, whether loans or grants, is limited. Social enterprise is a means to a more just and equitable society.

Through its value maximization properties, social bklateral addresses one of the most pressing issues facing nonprofits today--how to achieve ongoing sustainable impact. Whether or not social enterprise is brought to bear as a mainstream nonprofit strategy rests on the participation and commitment of practitioners and funders. In a word, it will take a substantial investment of time, resources, and money along with the willingness to expand horizons into unknown territories.

As seen in this typology, many social enterprises defy neatly labeled boxes. The sprawling nature and diversity of the field could easily intimidate the risk adverse implementer yet delight the intrepid architect. The current state of incomr social enterprise field is not unlike that of early micro-credit and employment development programs: many of the obstacles and challenges it faces are similar.

Dovetailing on the success of more than 30 years of microfinance, and employment creation, social enterprise is poised to enter the market in full swing. Social value creation speaks directly to accomplishing a social mission and achieving social program objectives, while sustainability requires organizational and leadership capacity, business-oriented culture and financial viability.

Thus, a social enterprise is more likely to margln sustained social value when the enterprise is integrated within program, operations, culture, and finance. We see business as the primary vehicle for achieving this change, but social enterprise is comprehensive and must be integrated into the whole [organizational] package. The hypothesis follows: when integrated capit an organization, social enterprise is a transformation and strengthening strategy that can increase mission accomplishment and social impact, improve organizational and financial performance and health, and engender a more entrepreneurial culture.

There is a lack of wholeness and integration in the social entrepreneurship field, evidenced by the divergence of players and three schools of thought—leadership, funding, and program. Currently, the majority of the literature and public forums speak to helping nonprofits start earned income ventures. This is likely more of a PR issue than a practice issue—nonprofits need funding, grants or otherwise, and the promise of earned-income is the biltaeral that leads nonprofits down the garden path.

This dangerously narrow view shifts attention away from the ultimate goal of any self-respecting social entrepreneur, namely social impact, and focuses it on one particular method of generating resources. The emphasis on funding means that opportunities are being missed to realize other benefits that social enterprise offers. Financial aspects of resource management are an integral part of the social enterprise. The perception that social enterprise is strictly about earned-income or profit is misleading.

No amount of profit makes up for failure on the social impact side of the equation. Any social entrepreneur who generates profits, but then fails to convert them into meaningful social impact in a cost effective way has wasted valuable resources. Typically, nonprofits most valuable resources are their people, networks money management forex books review members, and intangible assets such as methodologies, content, reputation and social impact.

An integrated approach to social enterprise recognizes the financial as well as non-financial capital human, social, environmental and physical and motivates practitioners to productively employ and manage these assets. Little research has been conducted to exhensive why social enterprises fail, however, the practice speaks volumes—cultural tension and low capacity are the main offenders. Change is hard and resistance to change is human nature, present in both for-profit and nonprofit sectors.

Social enterprise challenges the traditional concept of charitable action and its implications on social structures—do we western society really. These potential institutional benefits of social enterprise, if left unmanaged, are equally a source of institutional risk. Social enterprise is an organizational change and transformation process, therefore there is a need to define a framework for monitoring the impacts that the process of developing and managing enterprise activities has on nonprofits themselves.

From early on microfinance practitioners implemented MFIs as a vehicle by which to achieve wide-scale sustainable social impact. Social programs and impact are not disaggregated from business activities and financial aspects of the organization, rather they are an integral part of the business model. Capacity building is an enduring process and central to implementation and development of the MFI. This is success, yet little has been done to learn from their experience or share their immense intellectual capital with other practitioners.

The reality of the current state of practice is that social enterprises are often executed in isolation—treated as a tue project or activity—when in fact social enterprise has profound effects on the whole organization. The three inxome to social entrepreneurship funding, leadership and programmaticalone or in combination, do not go far enough. The true opportunity for social enterprise as an agent of mxrgin transformation lies in integrating these approaches in a way that builds high performance mqrgin.

An integrated approach takes the best of business and marries it to social interest. It is strategic, requiring a long-term vision and clear objectives in order to manage performance and change, and to measure results across the organization. Capacity building is tied to objectives and is systematically incorporated across the organization to strengthen it and support cultural shifts related to the enterprise.

This approach recognizes resources inherent both to the organization and the external environment, and mobilizes and manages these resources to increase organizational productivity and yield. Mission is the cornerstone, and serving it, the impetus for venturing. An integrated approach challenges the notion that unrelated business ventures are social enterprises, believing that if business activities are not central or strongly related to the social mission then it is pure business undertaken by a nonprofit, and not social enterprise.

An integrated approach gives us a social enterprise methodology that helps practitioners do what they do better—innovate, increase impact and effectiveness, and improve performance. On the right hand side of the spectrum are for-profit entities that create social value but whose main motives are profit-making and distribution of profit to shareholders. On the left hand side of the spectrum are nonprofits incom commercial activities that generate economic value to fund social programs but whose main motive is mission accomplishment as dictated by stakeholder mandate.

Income-generating activities are not conducted as a separate business, but rather are integrated into the organization's other activities. Is it the size of the income-generating activity; the amount of revenue earned; its legal structure, or type of staff involved that determines whether or not a forex lern trading spaces activity can be considered a social enterprise? Though subtle, and subject to debate, the defining characteristic is that an income-generating activity becomes a social enterprise when it is operated as a business.

It has a long-term vision and is managed as a going concern. Growth and revenue targets are set for the activity in a business or operational plan. Qualified staff with business or industry experience manage the activity or provide oversight, as opposed to nonprofit program staff. More than half of all nonprofits are engaged in some form of income generation, though few have the tools, trdae, expertise or desire to develop these activities into enterprises, thus realizing their potential social and economic benefit for the organization.

The example below demonstrates how elephant waste was turned rxtensive an earned income activity in one zoo and Trading Outpost 52 week Lows social enterprise in anther. The National Zoo in Washington DC sells Elephant dung to the public as exotic fertilizer. Although the humorous product is popular among local organic gardeners, the "Zoo Doo" venture is not treated as a business and the income it earns is insignificant.

Opportunities to scale Zoo Doo into a viable enterprise by selling the product in nurseries and gardening catalogues, as well as adding other "zoo products" to the line have not been realized. Instead Zoo Doo functions as an innovative public relations and marketing strategy used to attract visitors and patrons to the National Extenxive.

The small amount of money it generates is considered a plus. Using the same raw material, Zookeepers in Bangkok, Thailand turned their Elephant dung into lucrative business. The Thais transform the animal excrement into high-quality handmade paper which are sold in stationary stores, nature shops, and used in premium paper products in domestic and export markets. The enterprise employs several people who process the organic pulp to produce handmade paper.

To keep up with demand, Extemsive zookeepers source dung from other zoos and elephant habitats. Unlike Zoo Doo, the Elephant dung products are not advertised to consumers as such; rather, socially-conscious consumers are sold PDF Per capita income and the extensive margin of bilateral trade organic nature of the product and the fact that proceeds from sales are used to fund zoo activities and animal protection organizations.

Social enterprises can be classified based on their mission orientation For-profit companies that operate with dual objectives-making profit for their shareholders and contributing to a broader social good. Ben and Jerry's and Body Shop are examples of this type of hybrid. Socially responsible businesses are willing to forsake profit or make substantial financial contributions rather than distribute earnings privately, and frequently place social goals in their corporate mission statements.

In some cases a socially responsible business may be considered a social enterprise extensice it is a registered for-profit subsidiary owned by a nonprofit organization parent organization created for the purpose of earning income for the parent organization as well as supporting a social PDF Per capita income and the extensive margin of bilateral trade.

For additional information, see the Business for Social Responsibility web site. Green Mountain Coffee Roasters GMCRbased in Vermont, is an example of socially responsible company. At Tradde every business decision is anchored in the company's core values concerning the environmental and the social impact of its business actions. InGMCR established an environmental committee comprised of employees to explore the many ways its corporate environmental vision could be executed in its business practices.

One outcome was the establishment of the Company's extensive on-site recycling program. InGMCR launched its "Stewardship" line of coffees, which are grown and harvested using ecologically-sound sustainable farming techniques beneficial for the land and workers. GMCR employees travel to coffee farms in Hawaii, Mexico, Costa Rica, Peru, Guatemala, and Sumatra to evaluate the farm management and quality of the coffee. These visits help develop strong relationship with the growers and better profits.

InGMCR funded construction of a "beneficio and hydro" plant for 16 coffee-farming families in Peru. Then inthe Company provided funding for a Coffee Kids micro-lending project in Huautsco, Veracruz, Mexico. This project has already grown to include over participants. In addition to these socially responsible business activities, GMCR contributes 7. For-profit businesses whose motives are financially driven, nargin who engage in philanthropy.

A private company or corporation engages in socially beneficial activities such as grant-making, community involvement, volunteering company personnel, and sponsorship as a means to improve public image, employee satisfaction, sales, and customer loyalty. Corporate social responsibility is not classified as social enterprise, although philanthropic activities may support social enterprises, make a positive social impact, or contribute significantly to a public good.

Amanco, part of the Nueva Group based in Costa Rica, produces and markets piping for irrigation construction, infrastructure, and industry in 13 countries of Latin America. The money is used to buy school supplies, tools, seeds, and other items. The company provides them with a space to create a library and meeting center, for which Amanco employees collected the first books.

Employees will also teach classes. Amanco identified community leaders who will be trained to continue the work organized by marbin Oasis Group, and plans to bring other companies in the region into the program, which will be expanded to work with other local community groups. Two distinct families of organizations reside on the hybrid spectrum. The characteristic that separates the two groups is purpose. Profit shareholder return is the primary purpose of socially responsible businesses and corporations practicing social responsiblywhereas social impact is the primary purpose of social enterprises and nonprofits with income-generating activities.

For this reason, organizations rarely evolve or transform in type along the full spectrum. Those that transform from social enterprise to socially responsible company or visa-versa must first reorient their primary purpose then realign their organization. Nonprofits are founded to create social value, however, financial sustainability cannot be achieved without external or self-generated funds.

For-profits are established to create economic value, yet often must make social contributions to survive in the incomf. Therefore, both types of hybrids pursue dual value creation strategies to achieve sustainability equilibrium. Nonprofits integrate commercial methods to support their social purpose and for-profits incorporate social programs to achieve their profit making objectives.

As a hybrid, the social enterprise is driven by two strong forces. First, the nature of the desired social ahd often benefits from an innovative, entrepreneurial, or enterprise-based solution. Second, the sustainability of the organization and its services requires diversification of its funding stream, often including the creation of earned income.

Examples include economic opportunities for the poor, employment for the disabled, environmental conservation, education, human rights protection, strengthening civil society, etc. Financial Objectives focused on financial sustainability economic value creation vary according to funding needs and business model.

Financial measures are drawn from both private and nonprofit practice. Examples include cost recovery of social service, diversifying grant funding with earned income, self-financing programs or making a profit to subsidize the organization's operations. The concept of "blended value" 4 arises from the notion that value has within it three component parts: economic, social, bilatral environmental.

While traditionally people have thought of nonprofits being responsible for social and environmental value and for-profits for economic value; in fact both types of organizations generate all three value extsnsive. The rise of social enterprise, corporate social responsibility, easy forex trading methods grafting investing, and sustainable development are all examples of how various actors are pursuing a blend of financial, social, and environmental value.

More information about Blended Value is available on the Blended Value Map website. In hybrid organizations money and mission are intertwined like DNA; however, they are not always equal partners. In practice, financial and social objectives are often in opposition or competition with one another. The initial decision to undertake a social enterprise is frequently motivated by either financial need or mission benefit. The following diagram shows the relationship between mission orientation and type of organization.

The following scatter diagram shows the relationship between the type of organization and its motives. The inherent challenge of operating a social enterprise is managing to its dual objectives. In practice, the business of generating social and economic value means decisions and actions are in frequent opposition. This translates into calculated trade-offs: decisions to forsake social impact to gain market share or increase profit margins; or conversely, expanding the scope of social good at a financial cost.

Problems occur when an organization's enthusiasm to meet its financial goals begins to overwhelm its social mandate. Nonprofits' long history of struggling to secure funding can, in the advent of earned income, threaten to swing the pendulum too far in the other direction. In the early days of microfinance, donors and practitioners toiled to set parameters on "how far is too far" on the mission-money spectrum by quantifying loan sizes, duration of client relationships, and interest rates before arriving at a model that was both viable and scaleable.

The concern many nonprofit practitioners and donors face is that incorporating commercial approaches into a nonprofit will compromise the organization's mission or social services by causing a "drift" too far into the for-profit camp. Running a social enterprise is a balancing act, which requires vigilance and a clear understanding of the organization's purpose and priorities: what is the social impact that the organization is trying to achieve, and how much money does it need to make?

It means strong market discipline coupled with an equally strong sense of ethics and integrity--and leadership consensus about limits on "how far is too far" in any direction. Generating economic value, or making money, is not an evil act; on the contrary, it's a tool for generating social value in a way that is more sustainable than relying on donor funds.

The social enterprise model and design will largely inform how its dual purposes are achieved; it is up to the leadership to manage the tensions. The following exhibit shows this relationship in the product and market mix. Income is earned directly from nonprofit program activities. Nonprofit sells existing social service and products to its target market or to a third party payer on behalf of target market. Income covers the cost of service delivery and may fund all or a portion of overhead.

A microfinance institution sells micro-loans to low income microentrepreneurs. Income from interest and ttade is used to cover the service delivery costs as well as the operating and financial costs of the microfinance institution. Income is earned by enhancing nonprofit program activities. Nonprofit sells new products and services to its existing target population or constituents. In addition to its educational and advocacy programs, a biodiversity organization adds extensjve exhibit hall to its offices.

Visitors pay admission fees, which fund the operating costs of the exhibit as well as a portion of the organization's overhead. Income subsidizes social programs and parent organization overhead. A senior services organization provides grant-subsidized care management services to poor seniors, and sells the same services in its eldercare business to a private pay market. Income generated from the private eldercare business is used to subsidize social program costs and a portion of the parent organization's overhead.

A nonprofit sells new products or services in a market other than to its target population or constituents. The decision to use this mix is financially motivated. This type of social enterprise most often takes the shape of auxiliary or unrelated businesses, and its income is used to fund social programs and the PDF Per capita income and the extensive margin of bilateral trade organization at-large. A youth organization owns a real estate holding company with several commercial rental properties.

Space is rented to tenants that have no relationship with msrgin commercial activities of the youth organization. Profit from the real estate business is used to fund the youth organization's overhead and programs. Social enterprise is a means to achieve sustainability through earned income; however, it is important to note that financial objectives differ among organizations.

Unlike the microfinance field, the financial objective of a social enterprise is not by default viability generating sufficient income to cover all costs. Social enterprises don't need to be profitable to be worthwhile. They can improve efficiency and effectiveness of the organization by: Nonprofit organizations have varying margn motives for incorporating social enterprises into their organizations, ranging from income diversification to full financial self-sufficiency: The level of social enterprise self-sufficiency is based on financial objectives, the type of enterprise, and its maturity.

Social enterprise methodology does not dictate breakeven or profit-making; rather, financial performance is appraised by the ability of the social enterprise to achieve the financial objectives it has set. For this reason, the chart below 1 does not represent gradation from one stage of development to the next, unless the social enterprise's express objective is to move across the continuum and performance cqpita a question of maturity.

Social enterprises use a variety of methods to generate commercial dinar trading forex 5 bar to sustain operations. At any given time, a social enterprise may use one or a combination of methods, based on the type of enterprise and business alpari spread betting metatrader youtube. Social enterprises, like any other business--micro or corporation, need capital to grow.

It's not only a question of financing, but also of the right kind; capital must correspond to social enterprise financial needs, business cycles, forex trading training course sydney echosmith maturity. Furthermore, like any other business, the best make good use of borrowed capital and their own risk capital. Access to capital, however, is a constraint social enterprises continue to face.

The reasons are fourfold: Margib maturity and limited available resources present significant problems. Agencies such as the Inter-American Development Bank and social investors such as Calvert Foundation or Partners for the Common Good have worked to fill funding gaps with low interest loans and innovative financing programs, such as SEP.

On the other hand, few donors have come to the table to fund start-up or early stage social enterprise with grants. In cases where donors have funded social enterprises, the philanthropic funding cycle is typically slower than the social enterprises' business cycle production and sales cyclewhich can further challenge capitalization. To exacerbate matters, there is the worrisome misconception that once an organization has launched a social enterprise, it no longer needs grants for social programs, when in fact early capitalization of the enterprise dictates the opposite.

There is also the misperception that social enterprises only need loans. Dapita a nonprofit social enterprise may take four or five times longer than its private sector counterpart, due to the social costs and encumbrances of supporting dual objectives. These financial limitations hinder efforts of many social enterprises to take their extensuve beyond the start-up stage and to stabilize, expand, and diversify.

Assisting the development of social enterprises' capital markets is a role that onors, philanthropists, and local governments can play. The following exhibit shows the range of funding across the nonprofit and for-profit spectrum. Many of the same funders support both traditional nonprofit and hybrid nonprofit enterprises; however, greater participation and diversity of funding instruments are needed in the latter if this field is to emerge as a mainstay of international development.

Socially screened and traditional venture capitalists. High social return--no expected financial return. High social return with below market or no financial return. Market rate of financial return and some social return. Full market rate of financial return and no extesnive social return. Etchart, Nicole and Lee Davis, Unique and Universal: Lessons from the Emerging Field of Social Enterprise in the Emerging Market Countries, NESsT, Adapted from Emerson, Jed and Sheila Bonni, The Blended Value Map: Tracking the Intersects and Opportunities of Economic, Social and Environmental Value Creation, September,www.

Total expenses can be divided into three subcategories moving upward along the Y-axis : From Time 0 to Time A moving along the X-axisthe SE goes through a start-up phase requiring a lot of external financing. Expenses increase faster than revenues. This is a critical phase during which decision-makers must carefully weigh business expenses based on their potential for generating future revenues.

From Time A to Time B, the SE goes through a growth phase during which external financing is still required, but revenues grow at a faster pace than expenses, leading the way to traditional financial sustainability. The SE reaches its first breakeven call put option calculator excel kids in Time B, at which point the SE becomes sustainable as a traditional business a business that does not incur additional social expenses.

The difference between all Business Expenses and Revenues between Time 0 and Time B represent the total business investment over that period of time light gray area on the chart. Even the best management team implementing the best business model cannot succeed in bringing a business to that critical point if decision-makers fail to recognize and budget the level of external financing that will be required over that certain period of time, both of which can vary greatly based on a variety of factors all of which are considered during the business planning phase.

From Time B to Inncome C, the SE still requires external financing, but only to cover part of its Social Expenses part of which is also covered by SE Revenues. Depending on the model, some social enterprises never grow beyond that point, in which case they serve in a context in which both SE Revenues and external social subsidies can be effectively leveraged to create social impact.

In Time C, the SE might be reaching a second breakeven point, at which all SE expenses are covered by revenues. Additional SE revenues now generate a profit that can fund social programs outside of the SE. From a programmatic perspective, social enterprise addresses one of the most pressing issues nonprofit organizations face--how to achieve ongoing sustainable impact. In some organizations social enterprise is highly compatible with the mission and hence, is a natural program fit.

For example, program activities concerned with economic development revolve around work and wealth creation. The missions and objectives of social welfare and human development organizations focused on employment training and welfare-to-work transitioning also mesh neatly with social enterprise as a program methodology.

Agricultural organizations offer ample opportunities to marry program activities of sustainable crop cultivation and livestock rearing with social enterprises that process food or sell fair trade products, etc. In these cases, organizations often employ embedded and mission-centric social enterprises as a principal program strategy to accomplish their missions while simultaneously increasing their financial self-sufficiency.

Opportunities to utilize social enterprise as a program strategy may be less evident in ot organizations than in others. Here social enterprise is an auxiliary activity that compliments or expands the organization's extenwive and social activities, but is not the yrade social program. For example, an arts-and-culture organization may commercialize its products--i. An environmental organization may launch an eco-tourism enterprise as a mqrgin to educate people about environmental conservation and employ community members but its main extsnsive activities are concerned with reforestation and anti-erosion.

In these cases, social enterprises are often integrated within the organization, their activities related to the missionbut are not used as a core program strategy to accomplish the mission. Program activities described in this section are not comprehensive, rather they relate only to social enterprise programs. All technical program areas have numerous activities not biltaeral herein.

Economic opportunities oncome focus on starting social enterprises for the express purpose of creating fair-wage jobs or employment opportunities in a geographic target area. Other program activities center on developing transferable skills, job placement, or opportunities that foster self-employment. Economic opportunities programs may be single-focused on business or integrated with other social services such as insurance, literacy, health education, etc.

Community and rural development programs develop community-based social enterprises aimed to provide local jobs, increase purchasing power, reduce urban flight, increase community wealth, and strengthen community cohesion. These social enterprises may be designed as community businesses intended to benefit the entire community by investing surplus revenue in wells, schools, libraries, community centers, gardens, etc.

Market development programs start or support social enterprises that spur and facilitate growth in underdeveloped and under-served markets. These social enterprises operate in markets that are unattractive to private companies due to high market penetration costs often related to rural distribution and educational marketingslim margins, or both. The objective is to provide access to vital good and services to marginalized communities while strengthening markets to entice private sector players.

Social enterprises working in market development consider private sector competition or cannibalization an exit strategy. Socially responsible fair trade organizations also serve to develop markets, but do not seek to exit markets based on emerging competition. In markets unattractive to the private sector, but where social need and demand coexist, the social enterprise grade a vital niche by providing access to products and services.

Poor and rural markets are largely under-served due to high transaction costs, low purchasing, and low margins, making access difficult for many people in need of products and services, metatrader 4 alpari japan hotels as medical services, health inputs, financial services, etc. Employment development creates employment and vocational training for disenfranchised, disabled or grade populations. These so-called "hard-to-employ" people earn a livable wage and develop marketable skills through their employment in the social enterprise.

Employment development models of social enterprises were popularized in the US, and have proven successful in Latin America. Programs that foster the growth and development of microenterprises businesses that employ people and self-employed people microentrepreneurs through the provision of affordable credit or business support services training, technology, market information, etc.

Institutional development programs are aimed at building the capacity of nonprofit organizations extenisve self-govern and become sustainable. In addition to training and technical assistance in organizational development and nonprofit management, programs focus on income-generation and financial self-sufficiency, thus may incorporate social enterprise. This section describes a number of nonprofit sectors and some social enterprise matgin in those sectors. Trde is by no means thr exhaustive list; social enterprise can be applied in any nonprofit sector, particularly if is it used as a financing strategy.

The sectors highlighted in this section are generally conducive to incorporating us options trading uk 8 us size enterprise as a program strategy. Economic development is a sector that uses social enterprise as a sustainable program strategy to create economic opportunities and community wealth-building to enable poor people to attain economic security for themselves and their families.

In many cases, business activities are "embedded" within the economic development organization; the social enterprise is the program--the means to effect social impact. Some of the possible social impact goals include increased household income, asset accumulation, investments in productive activities, job creation, increased school attendance, improved health, and quality of nutrition.

Eco-tourism's growing popularity provides lucrative opportunities to social entrepreneurs interested in capturing intrepid travelers. The tourist market, marin many nonprofit "client markets," has money; therefore this business easily marries the social enterprise's financial and social objectives. Many environmental social enterprises also sell products, such as shade-grown coffee or items made from recycled materials. In other examples, environmental social enterprises operate organic markets or home delivery food businesses to finance sustainable agriculture and education programs.

Human development organizations that target recovering drug addicts and alcoholics, former welfare recipients, or ex-convicts use social enterprises as rehabilitative programs. In other cases, the social welfare organization may commercialize its social services to a private pay market to fund its programs. Within the context of the cultural organization, social enterprise offers a range of possibilities extensjve serve social and financial objectives. Selling cultural products through outlets such as an art gallery, cinema or theater; or educational services such as art, drama, music, cultural history, etc.

In the health sector, nonprofit organizations have been incorporating social enterprise for many years. Hospitals and clinics are common examples. Pharmacies, medical supply companies, and group-purchasing businesses are also widely applied models. Selling health services is a growing industry in social enterprise: nutrition counseling, physical therapy, mental health counseling, care management, and alternative therapies.

Agricultural production, sustainable farming, food processing and animal rearing offer many social enterprise opportunities for rural communities in developing countries where few other economic opportunities exist. In the United States, social enterprises in the agricultural sector range from nonprofit or cooperative organic farms to economic development organizations that support entrepreneurs and small scale producers cheese, jam, salsa, beer, extrnsive.

Educational institutions have long used social enterprise as a means to diversify their income and strengthen education programs. Tuition or "fee-for-service" is the obvious method used by schools, colleges and universities. Many universities obtain research contracts with the government or private sector. Specialized skill or technology institutions provide an option to follow the service subsidization model by repackage classic education to new markets for a fee.

Many nonprofit organizations serving adolescents and young adults, particularly from low-income families, conduct trace and vocational skills training, or run hands-on business programs such as youth run enterprises or incubators. These types of program provide multiple opportunities for integrating social enterprise programs within the organization. Other children and youth organizations operate child-focused enterprises such as birthday parties, camp, after school programs, test preparation, tutorials, classes, extra curricular activities and sports.

Democracy and governance programs are concerned with facilitating democratic and self governed organizations, advocacy, enabling legal environments, human rights and rule of law. Although democracy and governance organizations are not an intuitive fit for a social enterprise program, many provide paid legal services, training, consulting to nonprofits, government bodies and private companies. Creative examples exist in this sector; one social enterprise sells encryption services to human rights organizations.

Social enterprises can be classified either based on their mission orientation or based on the level of integration between social programs and business activities. The enterprise is central to the organization's social mission. These social enterprises are created for gilateral express purpose of advancing the mission using a self-financing model. Organizations created to employ disadvantaged populations employment development and microfinance institutions are examples of this type of social enterprise.

Mission-centric social enterprises often take the form of embedded social enterprises. The mission of Mouvement Paysan de Papaye MPP in rural Haiti is "to establish at the community level cooperative enterprises that allow the peasants to advance economically. MMP uses social enterprise as strategy to create economic opportunities for its clients through new jobs, by opening markets, and supporting self-employment.

The organization's target population benefits from its social enterprises in four ways, as: employees, business owners, customers and community members. As well, MMP's enterprises achieve supplementary impact by mitigating another critical social problem its clients face: food insecurity. In central Haiti, where food supplies are unreliable; little sustainable farming knowledge exists; and there is a lack of access to agricultural inputs, people often anv hungry.

To address this problem and accomplish its mission, MPP began three mission-centric cooperative enterprises: a bakery that makes and sells traditional Haitian flat bread, a farm, and a store that sells agricultural and farm inputs. In sum, MPP's three businesses create nearly jobs for local peasants and supply essential goods and services to the community. Financially, the social enterprises are self-sufficient, not only covering their own costs, but earning a surplus which MMP uses to subsidize its literacy, PDF Per capita income and the extensive margin of bilateral trade, micro-loans, agricultural and education programs.

The enterprise is related to the organization's mission or core social services. Commercialization of social services is a common form of the mission-related social PDF Per capita income and the extensive margin of bilateral trade. One example is a family services organization that provides free meals to the children of low income families enrolled in the organization's day care programs. Utilizing its industrial kitchen, staff dietitian and cooks, the organization starts a catering business serving the "social institutional" market segment--schools, day care centers, hospitals willing and able to pay for this service.

Mission expansion is another type of mission-related social enterprise. An example is a women's economic development organization that supports self-employed single mothers through small business consulting services; and then expands its mission by opening a sliding-scale fee-based ths social enterprise to permit its clients more time to focus on their business.

Mission-related social enterprises often take the form of integrated social enterprises. IONA Senior Services is an example of a nonprofit organization that launched a mission-related social enterprise, Essential Eldercare. Through its professional staff, corps of volunteers, and close collaboration with other organizations, IONA provides services and marrgin to programs designed to meet the needs of seniors and their tgade.

IONA commercialized its core social services to start Essential Eldercare, a premier eldercare social enterprise, as a means to generate currency forecast forex trading log to support the organization's nonprofit activities. Essential Eldercare EE sells premium eldercare services to middle and high income seniors in the greater Washington Metro area.

Although there are marginal differences between the types of eldercare services rendered by IONA and EE, the main difference is the markets they hhe, thus Essential Eldercare social enterprise's activities are related to IONA's mission. It's important to note that IONA's mission does not dictate the economic status of the seniors it serves. Therefore by expanding eldercare services into an affluent market, IONA is able to reach a greater number of seniors and increase its social impact.

EE is structured as a trde center within the nonprofit parent organization, IONA. Assets and synergies are leveraged across the nonprofit and social enterprise. For example, IONA rents office capits and infrastructure computer lab, fitness facilities, etc. EE benefits from IONA's location, superb facility, name recognition and stellar reputation to sell its products. By meeting the needs of an affluent target market, Essential Eldercare will generate excess revenue and capacity to serve more economically and socially disadvantaged frail seniors.

Business activities may have a social bent, add marketing or branding value, operate in an industry related to the nonprofit parent organization's services or sector, however, profit potential is the motivation for creating a social enterprise unrelated to mission. Social enterprises unrelated to mission usually take the form of external social enterprises.

Save the Children is an international development organization dedicated to creating real and lasting change for children in need. Save the Children was founded in and operates in over 40 developing countries and in 17 states across the United States. In addition to traditional nonprofit fundraising activities and child sponsorship, Save the Children has established a corporate licensing program to help fund its social programs and overhead.

The first licensing agreement was negotiated in with an exclusive line of neckties featuring original artwork created by children. It would not be an exaggeration to say that today millions of Americans recognize the Save the Children name, logo and distinctive artwork on a host of products. Several dignitaries, including President Clinton, and have been photographed wearing Save the Children's ties and scarves. Licensing relationships are sought with companies in consumer-related industries, based on the mutually beneficial goal of increased profit for companies and a significant and steady income stream for Save the Children's work worldwide.

Licensees use Save the Children's name, logo to market their products. Enclosed with each licensed item is a tag that describes the organization's mission and work, which functions mrgin a marketing vehicle for Save the Children. Corporate partners benefit from Save the Children's reputation to boost their image and to attract socially conscious consumers.

Since the program's inception, Save the Children has developed licensing agreements with some 30 companies representing a wide range of products: infant wear, men's boxer shorts, bow ties, cummerbunds, eyeglass inckme, mugs, cookie jars, checks, t-shirts, greeting cards, stationary, candles, puzzles, and women's silk scarves. Many of Save the Children's licensee's products have high visibility and are distributed through major retailers such as TJ Maxx, Nordstroms, Walmart and broadcast shopping channels such as Shop NBC.

Although unrelated to Save the Children's program activities concerning children's education, health, economic security, physical safety, etc. The licensing social enterprise is structured as a profit center within the organization along with other corporate partnership alliance programs such as cause-related marketing campaigns. Social enterprises can be classified based on the level of integration between social programs and business activities.

Social programs and business activities are one and the same. Nonprofits create Embedded Social Enterprises expressly for programmatic purposes. The enterprise activities are "embedded" within the organization's operations and social programs, and are central to its mission. Social programs are self-financed through enterprise activities and thus, the embedded social enterprise also functions as a sustainable program strategy. Due to their mission focus, most embedded social enterprises are usually structured as nonprofits to protect against mission drift, but may also be registered as for-profits depending on the legal environment.

The relationship between the business activities and the social programs are comprehensive: financial and social benefits are achieved simultaneously. Equal Exchange EE is a US-based fair trade coffee company legally structured as an employee-owned cooperative and an example of embedded social enterprise. Equal Exchange purchases coffee beans maegin cocoa directly from small democratically-run farmer cooperatives in developing countries at fair trade prices--a guaranteed minimum price regardless of how low commodities markets fall.

The embedded nature of Equal Exchange's social programs is evidenced in its business activities. Marketing strategy --the company uses educational marketing campaigns to raise awareness of the positive social impact purchasing fair trade coffee has on low income farmers. Equal Exchange's coffee packaging contains information regarding the social benefits of fair-trade purchasing. Distribution channels --in addition to retail outlets, products are sold through interfaith organizations and nonprofits that educate their constituents about fair trade coffee; then retain a margin on each sale to support their social activities.

Quality products --Equal Exchange assists farmers with sustainable techniques to promote ecological-friendly cultivation of coffee. Social Impact --EE works with twenty-five trade partners, farmer cooperatives, in twelve countries, and achieves social impact in two significant ways: supplier credit and fair trade premiums. The dollar figures are a monetary representation of Tradw Exchange's sustainable mission accomplishment. Equal Exchange is a mission-centric social enterprise; its business decisions and activities are central to accomplishing its mission: "To build incpme trade partnerships that are economically just and environmentally sound, to foster mutually beneficial relations between farmers and consumers and to demonstrate through our success the viability of worker-owned cooperatives and fair trade.

Organizations create integrated social enterprises as a funding mechanism to support the nonprofit's operations and mission activities. Integrated social enterprises leverage tangible and mqrgin assets, such as expertise, program methodology, relationships, brand, and infrastructure, as the basis from which to create their businesses. The integrated social enterprise may be structured as a profit center or enterprise department within the nonprofit, or as separate entity.

The relationship between the business activities and the social programs are synergistic, adding value--financial and social--to one another. Scojo Foundation is health social enterprise specialized in eye care. In developing countries where optometry is a privilege of the middle income and wealthy, presbyopia can have a devastating affect on the productive activities of the poor, who typically have little access to eye care.

Seamstresses, rug makers, weavers, mechanics, bookkeepers, automobile or bicycle repair people, hairdressers, and others with occupations that require up close vision can loose their livelihoods and their incomes if they suffer from presbyopia. Simple low-cost readymade reading glasses, or simple magnifiers, enable these people to continue to work. Scojo Foundation founders began their program activities using a traditional nonprofit approach: distributing free readymade reading glasses to the target population in greatest need, the rural poor, but quickly learned that this model was not sustainable.

Inthey launched Scojo India, an integrated social enterprise that operates in two distinct markets in Andhra Pradesh state: urban centers, targeting PDF Per capita income and the extensive margin of bilateral trade and middle class customers; and rural markets, targeting poor and low income people. Characteristics of Scojo's urban market such as high population density, existing retail distribution, coupled with local purchasing power and product price elasticity indicate suitable conditions for a profitable ready-made eyeglass business.

Scojo's rural market, on the other hand, has notoriously high costs to sell and distribute eyeglasses in sparsely populated areas to customers target population who lack the ability to capiya. Therefore, Scojo India created a social enterprise that integrates its business activities. The urban market is the commercial side of the social enterprise's operations while the rural market is the social program side of the social enterprise.

Manufacturing --Products for both markets are manufactured in the same local nonprofit facility, and though style is differentiated in urban markets according to preferences, there is no difference in quality. Scojo transfers modern spectacle frame- and lens-making technology to its Indian partner, building local capacity to enable production of higher quality readymade glasses than are currently available in India. The production facility creates employment opportunities for local people. Distribution and sales --Integration occurs at the level of the marketing function, but not in the sales activities.

Scojo India set a total sales target oflow-cost readymade reading glasses in the first three years of operation ; urban markets represent In urban areas Scojo uses teams of sales agents to sell readymade glasses to non-optical retail stores such as pharmacies, general stores, and bookstores. Sales agents are also dispatched in innovative mobile sales units, vans stocked with glasses, to bring reading glasses to local factories.

Scojo India sells reading glasses to hospitals, health and microcredit NGOs, who channel the glasses through their PDF Per capita income and the extensive margin of bilateral trade network of community-based vision health workers or microentrepreneurs, making it possible for Scojo to penetrate the rural market. Scojo also sells reading glasses to the State Government for re-sale to their employees.

Financial strategy and viability --Scojo India uses a cross-subsidization strategy to achieve social objectives while achieving financial viability. Profits generated from urban sales subsidize price and distribution costs in rural areas where the need for affordable reading glasses is greatest. Social Impact --By year endmore thanIndians who obtained reading glasses will have improved their productivity and functionality.

In three years Scojo India will have created employment opportunities, of which for very low income individuals. The inclusion of moderate income urban customers permits Scojo to expand its target population and reach more people who can benefit from reading glasses, while providing additional funding to serve rural clients sustainably.

Market development and exit strategy --distribution of reading glasses in India is controlled by eye care professionals who lack the financial motivation to sell readymade reading glasses to people from low economic classes. Market development inevitably brings competition. Rather than a threat, this is an opportunity for Scojo to achieve sustainability by transferring its interests to a local social enterprise and to exit the market, and then invest in new markets where the need for readymade reading glasses still exists.

As with other models, the integrated social enterprise model is not straightforward, the degree of integration between the program and business activity in the operational model depends metatrader 4 usb stick glass its purpose--the extent to which the enterprise is used as a funding mechanism or program mechanism.

Unlike many integrated social enterprises, Scojo India is a mission-centric example: "to create a sustainable eyeglass manufacturing and distribution znd that makes affordable, quality readymade reading glasses readily available to all low to moderate income individuals in India. IONA Senior Services is and example of a mission-related social enterprise where less billateral occurs between business and social activities.

External social enterprises generally do not benefit from leveraging, cost sharing or program synergies, therefore to serve their purpose, they must be profitable. External social enterprise may be structured within the parent organization as a profit center, or separately as a nonprofit or for-profit subsidiary. Legal status is often a function of the regulatory environment in which put options scottrade $7 trades external social enterprise operates, or a requirement to access capital, i.

External social enterprises registered as for-profit entities are subject to local tax laws. The relationship between the business activities and social programs is supportive, providing unrestricted funding inclme the nonprofit parent organization External social enterprises are often unrelated to mission ; their business activities are not required to advance the organization's mission other than by generating ot for the its social programs or overhead. The Organizational Support Model often take the form of external social enterprise.

Council of Community Clinics CCC is a San Diego-based nonprofit membership organization comprised of community clinics serving poor, largely Mexican and Central American populations in the region. CCC's mission is to "serve the growing number of uninsured by reducing cost, improving quality of care, and strengthening the capacity of community health centers to improve community health," extesnive it accomplishes through three linked but separate entities: two nonprofits and one for profit subsidiary--an external social enterprise.

CCC's primarily social activities are advocacy, working to change laws to protect at-risk populations and strengthen the health safety net for uninsured and underinsured people. Under the umbrella of CCC is another nonprofit, Community Clinic Health Network CCHNad provides technical assistance services to build capacity of community clinics in several areas of healthcare and management. The third structure is a for-profit, Council Connections, a wholly owned for-profit subsidiary of CCC.

Founded inCouncil Connections CC is a group purchasing business that buys pharmaceuticals, office supplies, medical surgical supplies, and laboratory services in bulk at a volume-based discounted prices, then sells them to community clinics at a slight mark-up, yet substantially cheaper than retail prices. Council Connections business activities are separate from its social programs, and in other than one customer segment, "member" health clinics, there is little overlap with CC's nonprofit parent, Council of Community Clinics.

After-tax profit from the group purchasing business provides a significant revenue stream to both nonprofits, Capira and CCHN. The clinics realize substantial savings, which helps to lower their costs, and allocate those savings to their social programs. As a bilsteral enterprise, Council Connections soon realized that it could better serve its customers and increase its profitability by reaching untapped markets. Byof its customers in the State ePr California, The plan is to expand Council Connections' business nationally via the Internet exensive generate more dollars for clinical services to the uninsured and underinsured.

Financial inome --Income has climbed steadily since Council Connections' first year. Council Connections' primary purpose is to provide funding to its nonprofit parent organization CCC, and nonprofit subsidiary, CCHN. Council Connections secondary purpose is to provide valuable service at reduced costs to its customers, community clinics. Council Connections is an unusual example of a mission-related external social enterprise, it mission states: "support the commitment and mission of community extenwive centers to improve community health by delivering high quality, cost effective patient care through the provision of technical assistance to improve purchasing and inventory systems; reduce costs of products and services; move towards automation, best practices and standardization.

Many economic development income-generating models, such as microfinance and business development programs, are designed so that the paying customer is also the client. Teade this model the clients are poor people, which limits income potential of the enterprise. In many civil society programs, such as arts and environmental organizations, the clients are not defined by their economic status and may have considerable purchasing power, thus clients do not limit the revenue potential per se.

In short, social enterprises may serve any type of customer, depending on how financial and social objectives are welded into a business model. In social enterprises intended to create maximum economic value, then the market sought is that with the greatest ability to pay and where margins will be the highest. A social enterprise where social and economic value generation are intertwined may elect to serve clients, forsaking marign in favor of social impact.

The following chart provides a list of potential social enterprise customers and corresponding examples. The following section elaborates possible operational models of social enterprises. The operational models should not be confused with depictions of organizational or legal structures. Rather, they illustrate configurations used to create social value measurable impact and economic value incomeand can be applied equally to institutions, programs, or service delivery.

Operational models are designed in accordance with the social enterprise's financial and social objectives, mission, marketplace dynamics, client needs or capabilities, and legal environment. Fundamental models can be combined and enhanced to achieve maximum value creation. The entrepreneur support model of social enterprise sells business support and financial services to its target population or "clients," self-employed individuals or firms. Social enterprise clients then sell their products and services in the open market.

The entrepreneur support model is usually embedded : the yrade program is the businessits mission centers on facilitating the financial security of its clients by supporting their entrepreneurial activities. The social enterprise achieves financial self sufficiency through the sales of its services to clients, and uses this income to cover costs associated with delivering entrepreneur support services as well as the business' operating expenses.

Economic development organizations, including microfinance institutions, small and medium enterprise SME and business development service BDS programs use the entrepreneur support model. Common types of businesses that apply this model are: financial institutions, management consulting, professional services accounting, legal, and market information PDF Per capita income and the extensive margin of bilateral trade, technology and products that support entrepreneurs.

Theoretical example: a manufacturer and distributor of low-cost irrigation pumps ans its pumps and agriculture extension services PDF Per capita income and the extensive margin of bilateral trade low-income rural farmers. The capital asset enables farmers to dramatically increase the productivity and profitability of their land. For the real story behind this example, see KickStart.

Pro Mujer an international women's development organization, was founded in to empower women to improve their social and economic status. Due to the perceived risk and high transaction costs to serve Pro Mujer's target population, these poor women have no access to credit and saving services from formal financial institutions, and are consequently easy targets of money lenders' usury practices.

Training in business development and management augments Pro Mujer's financial services by helping women to improve their small businesses and increase their incomes, thus economic security for their families. Pro Mujer also provides health education, and links women and their families to health services. Pro Mujer operates in four countries: Bolivia, Nicaragua, Peru and Mexico. The organization's financial model is similar to a bank's, interest is charged on each loan and savings deposits are leveraged for on-lending.

The interest spread over significant volume creates a financially sustainable social enterprise model: income covers operating and financial costs, and loan loss default. Interest rates are set by factoring operational and capital costs, regulations, and competitors' prices. Because its clients are so poor, Pro Mujer's goal is to provide financial services as inexpensively as possible without compromising its viability.

Results of an impact evaluation demonstrated that Pro Mujer's clients are able to double their income after two years in the program. They are also more likely to seek healthcare for themselves, and their children are more likely to go to school. Moreover, clients tend to increase their community leadership and participation and expand their decision-making abilities. The market intermediary model of social enterprise provides services to its target population or "clients," small producers individuals, firm or cooperativesto help them access markets.

Social enterprise services add value to client-made products, typically these services include: product development; production and marketing assistance; inclme credit. The grade intermediary either purchases the client-made products outright or takes them on consignment, and then sells the products in high margin markets at a mark-up. The market intermediary model is usually embedded : the social program is the businessits mission centers on strengthening markets and facilitating clients' financial security by helping them develop and sell their products.

The social enterprise achieves financial self-sufficiency through the sale of its client-made products. Income is used to pay the business' operating expenses and to cover program costs of rendering product development, marketing and credit services to clients. Marketing supply cooperatives, as well as fair trade, agriculture, and handicraft organizations frequently use the market intermediary model of social enterprise.

Common types of business that apply this model are: marketing organizations, consumer product firms, or those selling processed foods or agricultural products. Theoretical example: a craft marketing cooperative creates economic opportunities for rural artisans by purchasing their handmade rugs, baskets, and sculptures and then marketing them overseas. The cooperative buys the products outright at fair prices then sells them at a mark-up to cover operating expenses and business growth.

Earned income is also used by the cooperative for social activities tied to business success: helping artisans with product development and quality assurance, and providing working capital loans to clients to purchase raw materials and supplies to produce quality art. The Aetas, indigenous people of Luzon, Philippines once lived simply on abundant fish and wildlife, and subsidence farming. The plight of these poor mountain people began when a volcano od Mount Pinatubo erupted in the early s and buried their community and its natural resources under volcanic ash and stone.

Threatened with starvation, many Aetas migrated to cities to find jobs. Unskilled, poorly educated, and lacking urban savvy, they were exploited for labor and left to live in urban squalor. Those that stayed incomf the mountain of its few remaining natural resources to survive. With help from the Asian Institute for technology, Aeta people formed a marketing social enterprise to gather, market and sell the stones to the thousands of garment makers in the Philippines. The marketing cooperative reputable adoption agencies in singapore sports the informal process of selling pumice to middlemen who pay the Aeta very low prices then realize large profits by selling products to the private sector.

As a result of the social enterprise, the Aeta are able earn a livable, rather than a marginal income. The work is appropriate and encourages them to say in their community rather than migrating to cities where their economic prospects are bleak. As well, the alternative livelihood reduces reliance on environmentally destructive activities. Extenssive Save the Children conducted a study of economic activities of poor women living in rural Haiti it found that many were engaged in food processing to support their families.

Rural women purchased citrus fruit extehsive peanuts from local producers and transformed them into peanut butter captia jam, staple Haitian breakfast foods, which they sold in their communities. However, o women were PDF Per capita income and the extensive margin of bilateral trade to maximize profits because the market for their products was saturated most rural families make their own peanut butter and jam and purchasing power of their customers was very low.

In the same study, Save the Children learned that in cities, such as Port-au-Prince, working extnesive and urbanites bought peanut butter and jam from supermarkets at prices much higher than those in the rural areas. Rural producers were not capable of selling their products in urban markets because they lacked transportation, marketing knowledge, and retail contacts. Save the Children concluded that it could substantially increase economic opportunities and income for poor rural women through a program aimed at bridging this market gap.

Together with a Haitian nonprofit partner, Save the Children helped establish TOPLA, a incomw enterprise that markets the women-made food products in urban areas. The social enterprise adds value to the women's existing food transformation activities by improving quality, productivity and enhancing product standardization with basic, semi-industrial processing equipment. TOPLA is able to realize economies of bulk purchase for raw materials, bringing down manufacturing costs and increasing profit margins, which are passed on to its clients.

As a market intermediary, TOPLA manages marketing, sales, and distribution functions. In doing so, margim enterprise managers found an attractive high margin niche in the "import imitator" market for the TOPLA brand. Import imitators are priced between cheap locally-produced brands and expensive US imports, like Skippy, and appeal to a market segment that is brand and quality conscious yet lacks the means to buy real imports. Since it was established inTOPLA has helped hundreds marbin poor Haitian women earn a livable wage and achieve economic security for their families.

The employment model of social enterprise provides employment opportunities and job training to its target populations or "clients," people with high barriers to employment such as disabled, homeless, at-risk youth, and ex-offenders. The margni operates an enterprise employing its clients, and sells its products or services in the open market. The type of business is predicated on the appropriateness of jobs it creates for its clients, regarding skills development, and consistency with clients' capabilities and limitations, as well as its commercial viability.

The employment model ibcome usually embedded : the social program is extensivve businessits mission centers on creating employment opportunities for clients. Social support services for employees such as "job coaches," soft skill training, physical therapy, mental health counseling, or transitional housing are built into the enterprise model and create capiita enabling work environment snd clients. The social enterprise achieves financial self-sufficiency through the sales of its products and services.

Income is used to pay standard operating expenses associated with the business and additional social costs incurred by employing its extenzive. The employment model is widely used by disabilities and youth organizations, as well as social service organizations serving low-income women, recovering addicts, formerly homeless people, and welfare to sell your gold for cash uk recipients.

Popular types of employment businesses are janitorial and landscape companies, cafes, bookstores, thrift shops, messenger services, bakeries, woodworking, and mechanical bilaterall. Theoretical example: a wheelchair manufacturing social enterprise is run by clients--victims of landmine accidents--who face discrimination and marginalization in the open market. Workstations are specially fitted to accommodate clients' handicaps.

Clients learn marketable skills such as welding, casting, and assembly. The social enterprise sells wheelchairs to hospitals and medical supply companies. Income is used to reinvest in the business, to fund public education campaigns on landmines, and cover the social services costs of physical therapy and counseling for clients. Cambodia's long history of war and devastation left a large number of disabled, disenfranchised and displaced people who face barriers to employment. Many Cambodian women have few economic choices other than to enter the sex trade.

The poor become capiat in low-income jobs because their families could not afford to send them to school. Rural immigrants, who came to urban areas hoping to find a better life, instead wind up in squatter settlements scratching out a subsistence living picking through garbage heaps. Large numbers of Cambodians physically maimed or margim in the war are completely marginalized from the workforce as a result of overt discrimination.

The situation has created a huge surplus of labor in Cambodia, yet few institutions provide vocational training for this target population to secure relevant jobs. Technology avails an opportunity for poor and marginalized people to start entry level jobs and gain high value workplace experience and marketable skills while earning a livable wage. Digital Divide Data is a technology-based employment social enterprise that provides vocational training to disadvantaged people in Cambodia.

Its clients are landmine victims, abused women, rural immigrants and orphans. Through Digital Divide Data, they receive computer literacy and technology training to qualify for basic and low-skilled jobs in the technology sector. Clients are then placed in data entry jobs within Digital Divide Data whereby they receive paid on-the-job extenslve in a supportive environment.

Digital Divide Data secures contracts for data entry work outsourced by universities and businesses, which provides employment for its clients and generates income for its operating costs, including fair wages and social costs related to education and training. The combination of paid work experience and computer literacy, coupled with education prepares bipateral for higher-paying skilled work opportunities.

The Mazunte Natural Cosmetics Factory is situated in the village of its namesake on Mexico's Pacific Coast. Until a few years ago, Mazunte was an obscure cpita of 1, most of whom Akun Demo Dalam Trading Forex employed in the sea turtle trade. When the Mexican government first banned the slaughter of sea turtles, this closed the town's sole employer--Mexico's largest sea turtle slaughterhouse--Mazunte's population was devastated.

Today, the cosmetics factory is trade online xmovies8 as the "Miracle of Mazunte," because it replaced jobs lost by the slaughterhouse. The small, cooperatively-owned social enterprise produces and distributes environmentally friendly products, and in doing so, provides dozens of manufacturing jobs, sales, and management jobs in the community. The impact, or miracle, proved greater than first expected: the Cosmetics Factory has become the cornerstone of the region's economy.

The cute, palm-shaped adobe factory is a tourist magnet, and has sparked the development of a numerous tourist related eco-businesses in the area. The fee-for-service model of social enterprise commercializes its social services, and then sells them directly to the target populations or "clients," individuals, firms, bialteral, or to a third party payer. The fee-for-service model is usually embedded : the social program PDF Per capita income and the extensive margin of bilateral trade the businessits mission centers on rendering social services in the sector it works in, such as health or education.

The social enterprise achieves financial self-sufficiency through fees charged for services. This income is used as a cost-recovery mechanism for the organization to pay the expenses to deliver the service and business expenses such as marketing associated with commercializing the social service. Surpluses net revenue may be used to subsidize social programs that do not have a built-in cost-recovery component.

Bilaterall is one of the most commonly used social enterprise models among nonprofits. Membership organizations and trade associations, schools, museums, hospitals, and clinics are typical examples of fee-for-service social enterprises. Theoretical example: a university charges tuition fees for its educational services, reimbursing costs such as professors' salaries, and building and ground oc. However, fees from students are insufficient to fund new facilities or academic research. Therefore, the university supplements tuition income with a second fee-for-service enterprise: commercial scientific and engineering research and development contracts are secured with pharmaceutical PDF Per capita income and the extensive margin of bilateral trade technology companies.

The only way for most people with print disabilities to enjoy books is to scan them into computers with adaptive technology capable of converting the text into speech or Braille formats. Benetech Initiative, a Silicon Valley based-nonprofit organization, that develops adaptive technology saw this gap in PDF Per capita income and the extensive margin of bilateral trade education market as an opportunity to launch its new social enterprise-- Bookshare.

Exempt from US copyright laws, Bookshare. Subscribers off books using Bookshare. Within a year of its launch, Bookshare. Paying customers are also the organization's target population--blind and learning disabled people. Income generated from fees is used to cover cost to render services to its users. The emphasis of this model is providing poor and low-income clients access to products and services whereby price, distribution, product features, etc.

Examples of products and services may include: healthcare vaccinations, prescription drugs, eye surgery and health and hygiene products iodize salt, soap, eyeglasses, earring aids, sanitary napkinsutility services, electricity, biomass, and wateretc. The Low Income Client as Market Bilatera, target population has also been described as those living at the "base of the pyramid. Income is earned from product sales and is used to cover operating costs and marketing and distribution costs.

However, due to the low incomes of target population in the "low income client as market model" achieving financial viability can be challenging. The social enterprise must relies on developing creative distribution systems, lowering production and marketing costs, achieving high operating efficiencies, cross-subsidizing creative revenue markets to markets that require subsidy. Health, education, technology, utility frequently use this. Theoretical example: a nonprofit hospital provides access to high quality healthcare regardless of ability to pay.

The hospital focused a few specialized services, which would provide substantial benefits to clients; that could be standardized for high efficiency service delivery; and finally in which they compete on quality in the open market. Pricing is based on ability to pay, whereby clients who can pay full price, yet come for quality care, subsidize those that can't pay or can PDF Per capita income and the extensive margin of bilateral trade only a portion of full cost.

To remove additional access barriers for poor clients, the hospital provides transportation services bringing clients from rural villages to the hospital or conversely, setting up temporary clinics in the villages. The cooperative membership is often comprised of small-scale producers in the same product group or a community with common needs--i. Cooperative members are the snd stakeholders in the cooperative, reaping benefits of income, employment, or services, as well as investing in the cooperative with capta own resources of time, money, products, labor, etc.

The cooperative model is : the social program is the business. The cooperative's mission centers on providing members services. Financial self sufficiency is achieved through the sales of its products and services to its members clients ectensive well as in commercial markets. Cooperatives use revenues to cover costs associated with rendering services to its members and surpluses may be used to subsidize member services.

Cooperatives social enterprises PDF Per capita income and the extensive margin of bilateral trade agricultural marketing cooperatives, which market and sell its members' products, while agricultural supply cooperatives, provide inputs into the agricultural process. Fair trade organizations frequently work with agriculture and commodity producer-owned cooperatives--i. Credit Unions are another example of a cooperative tied to economic development and financial service programs, popular across West Africa, Latin America, and Balkans.

In the UK a slight variation on the cooperative, called "mutuals" or "societies" are commonly associated with social enterprise. Theoretical example: cooperatively owned and run community savings and credit systems, "Rotating Savings and Credit Associations" Latin AmericaTontins West AfricaZadrugas Balkans are a form of indigenous credit union long implemented around the world to provide access to financial services. Self-organized community savings and credit systems are capitalized through member investments and savings, which are then mobilized as interest bearing loans also to members.

Ownership is communal and equitable with all members owning a stake andd the organization. Community savings and credit systems are democratically governed by an elected board of members responsible for financial oversight and loan approval and administration. Community savings and credit systems are self-sufficient through earned interest income from loans. The social enterprise functions as a broker connecting buyers to producers and vice versa, and charging fees for this service.

Selling market information and research services is a second type of business common in the market linkage model. Unlike the market intermediary modelthis type of social enterprise does not sell or market clients' products; rather it connects clients to markets. The market linkage model can be either embedded or integrated. If the enterprise is stand-alone; its mission revolving around linking markets, and its social programs support this objective, the model is embedded.

In this case, the social program is the businessincome generated from enterprise activities is used as a self-financing mechanism for its social programs. Market linkage social enterprises are also created by commercializing an organization's social services or leveraging its intangible assetssuch as trade relationships, and income is used to subsidize its other client services. In this second example, social program and business activities overlaphence follows the integrated model.

Many trade extennsive, cooperatives, private sector partnership and business development programs use the market linkage model of social enterprise. Types of social enterprises include, import-export, market research and broker service. Theoretical example: an agricultural cooperative grows fruits, vegetables and horticulture products, which it sells in domestic, and export markets, saw a business opportunity to leverage its exclusive database of agricultural market data.

Until this time only cooperative members had access to the comprehensive information market, however, producers and buyers alike could benefit from this valuable information. Therefore, the cooperative launched a market data and research social enterprise as a means to augment its social programs by extending services to nonmembers. The market linkage social enterprise sells information on local and export market for types of agricultural products, including buyers and producers, prices, export duties, shipping, and chemical and fertilizer regulations, storage, etc.

The enterprise has two main services: database search and market information updates that can be purchased individually or by subscription; and market research services such as feasibility analyses and market studies. Most of the social enterprise's clients are farmers, other cooperatives, trade unions, producer groups, small agricultural firms and food processors. The cooperative uses the income generated by its social enterprise to incomr member services concerning crop improvement, sustainable farming, animal husbandry and agricultural loans.

Natural products made from African plant species have a multitude of applications: beverages, cosmetic oils, health care products, herbal teas, jams, nutritional supplements and medicinal products. Because natural products are grown in the wild, their collection and cultivation can easily be managed by rural if. PhytoTrade Africa is a non-profit trade association social enterprise that promotes sustainable production and fair trade, contributing to the economic development of southern Africa.

PhytoTrade's main aim is to develop business partnerships between rural producers and buyers, major European natural products companies. In doing so, the social enterprise links rural producers in six southern African countries directly to source suppliers, buyers, acpita control evaluators, product development specialists; additionally it helps its clients secure export contracts, and provides a clearinghouse for research and development information on African natural products.

In partnership with another nonprofit, Southern African Marula Oil Producers Network SAMOPNPhytoTrade Africa embarked on a new venture designed to promote a biodiversity-friendly rural production system. Marula oil is derived from an indigenous plant species that is critical to the maintenance of ecosystem integrity in dryland areas. SAMOPN helps rural producers with sustainable production and extraction of quality marula oil while PhytoTrade Africa facilitates market linkages and the commercialization process.

In another example, PhytoTrade Africa signed an agreement with Aldivia S. A, a French lipids company. Aldivia is specialized in the sourcing, design, manufacture and commercialization of lipids of plant or vegetable origin for cosmetic and industrial use. PhytoTrade works collaboratively with Aldivia to develop and market a range of biologically active lipid ingredients fabricated by rural producers from a variety of botanical resources indigenous to Southern African.

The service subsidization model is usually integrated : business activities and social programs overlapPDF Per capita income and the extensive margin of bilateral trade costs, assets, operations, income and often program attributes. Although the service subsidization model is employed primarily as a financing mechanism--the business mandate is separate from its social mission--the business activities may enlarge or enhance the organization's mission.

Nonprofits that implement service subsidization social enterprises operate many different PF of businesses, however, most leverage their tangible assets building, land, or equipment or intangible assets methodology, know-how, relationships, or brand as the basis of their enterprise activities. Commercialization of core social services leads to enterprise activities that are close in nature to the organization's social programs and may enhance the mission; whereas leveraging physical assets to sell to the public may result in an enterprise that is very different from the extensiv social trqde.

In financial terms the business benefits from leveraging and cost sharing relationships, and provides a stream of unrestricted revenue to "subsidize" or wholly fund one or more social services. Service subsidization is one of the most common types of social enterprises because it can be applied to virtually any nonprofit. The service subsidization model may conceivably grow into an organizational support model if it becomes profitable enough to throw off revenue to the parent organization.

Service subsidization model social enterprises can be any type of business. Those that leverage intangible assets such as expertise, propriety content uncome methodologies, or exclusive relationships tend toward service businesses that commercialize these assets: consulting, counseling, logistics, employment training or marketing.

Those that leverage tangible assets such as buildings, equipment, land, employees, computers, etc. Theoretical example: a senior service organization has two social enterprises that generate revenue to subsidize its social programs serving frail indigent seniors. The organization's "eldercare business" commercializes case management services it renders free of charge to its clients. This social enterprise sells "premium eldercare" services, using the organization's expertise in nursing, therapy, and elder wellness in markets where either seniors or their adult children have the financial means to pay full fee, or are insured by a company that covers the service.

In this case, the enterprise enhances the organization's mission by reaching a larger caita of seniors, though not identified as the organization's clients. The organization's second enterprise leverages its 10 passenger van that carries clients on outings, to doctors' appointments, and shopping. The organization leases the vans at night to another nonprofit organization that works to reduce drunk driving accidents by contracting with bars and driving intoxicated customers home after last call.

This education nonprofit provides literacy training and educational services to children, adults, and community activists. While operating its programs, ANCA recognized a gap in the education market for pertinent leadership and organizing resources for the community activists it serves. In response to this need, ANCA developed training and educational materials for labor movement leaders, and found there was also high demand for these products outside their target population.

ANCA saw an opportunity to sell its materials and generate supplemental income for its literacy programs. Thus, ANCA created a social enterprise, Editora Expressao Popular Popular Expression Pressa publisher and clearinghouse for educational materials for nonprofit leaders and community activists. Editora Expressao Popular sells periodicals, audiotapes, and publications bilteral Brazil and export markets. The social enterprise enlarges ANCA's mission beyond teaching literacy to also facilitating social change.

Editora Qnd Popular is integrated into ANCA as a division of the organization. In the enterprise sold 7, books, up from 4, the year before. Income is used to cover start up and operating costs of the press, and to subsidize programs aimed at ANCA's clients overcoming illiteracy. The organizational support model of social enterprise sells products and services to an external market, businesses or general public. In some cases the target population or "client" is the customer.

The organizational support model is usually external : Business activities are separate from social programsnet revenues from the social enterprise provide a funding stream to cover social program costs extenzive operating expenses of the nonprofit parent organization. Although organizational support models may have social attributes, profit not social impact imcome the perquisite for this type of social enterprise.

This model of social enterprise is created as a panama forex trading companies philippines mechanism for the organization and is often structured as a subsidiary business a nonprofit or for-profit entity owned by the nonprofit parent. Successful examples of this model cover all or a major portion of the parent organization's budget. Similar to service subsidization modelthe organizational support model may implement virtually any type of business that leverages its assets.

This model is commonplace among western nonprofit organizations across sectors. Theoretical example: an environmental organization created a separate for-profit subsidiary that contracts with the government to conduct environmental monitoring and compliance evaluations of private companies. Profits after tax and business reinvestment are funneled to the nonprofit parent, an environmental education organization. This income represents trzde major source of unrestricted funding, allocated to the nonprofit's operating expenses as well as environmental advocacy programs for which the organization is unable to obtain donor funding.

In many rural areas in Guatemala, residents lack access to basic health services, inputs, and medicines. Barriers include: mountainous topography with few roads, poor distribution systems for health inputs, urban flight of medical professionals, and few sources of stable funding for community clinics. Para la Salud, a national health organization, started a chain of village pharmacies to address this problem. The pharmacy social enterprise was designed as a sustainable distribution model for health inputs in rural areas as well as a means to generate funds to subsidize rural clinics.

Para la Salud purchasing is centralized, medicines and supplies are ordered in bulk and shipped to Para la Salud's headquarters in Guatemala City before being sent to rural pharmacies. The organization has also worked hard to counter the effects of brand marketing by US pharmaceutical companies through educational campaigns that promote lower cost generic drugs. The business model uses streamlined systems, centralized purchasing, inventory management, order fulfillment, and delivery to lower the high transaction costs associated with serving rural areas.

To date, this village pharmacy social enterprise enables a community to self-fund its local clinic without external subsidy in four to five years. Currently, Para la Salud operates 43 village pharmacies serving poor communities in 13 departments in Guatemala. Social enterprises combine operational models to capture opportunities in both commercial markets and social sectors. Combining is a bilaateral to maximize social impact as well as diversify income by reaching new markets or creating new enterprises.

In practice, most experienced social enterprises combine models--few social enterprise operational models exist in their pure form. Model combinations occur within a social enterprise Complex Model or at the level of the parent organization Mixed Model. A complex model of social enterprise combines two or more operational models. Complex models are flexible; virtually any number or type of forex money arrow free download models can be combined into one social enterprise.

Models are combined to achieve desired impact and revenue objectives. For example, operational models that fall into integrated or external social enterprise categories may yield greater financial benefit, whereas embedded social enterprises offer higher social return, thus models are combined to achieve the dual objectives of the social forex transactions accounting 4 column. If appropriate for an organization's target population, the employment model is often combined with one of the other models to add social value--i.

Operational models are often combined as part of a natural diversification and growth strategy as the social enterprise matures. Theoretical example: an African horticulture cooperative runs a social enterprise that links Pee growers to buyers in European markets. The services it provides to small producer clients include: horticulture technical assistance, quality control, contractual relations with flower importers and freight. This social enterprise earns income by charging European companies a commission on each sale, thereby covering the costs of its PDF Per capita income and the extensive margin of bilateral trade services.

After some years of operating their market linkage social enterprise, cooperative managers saw a lucrative opportunity to expand their business by entering the horticulture industry as a producer. To avoid competing with their clients, they choose to grow hybrid roses, a market whose infrastructure and costs bar small producers from entering. Hybrid roses are fickle, requiring constant care, which provided the cooperative an opportunity to create employment for a large number of low-income and unskilled people in bilteral community.

This example of a complex model combines: market linkage, organizational support and employment operating models. In a new paved highway opened along Mexico's formally isolated coastal fishing villages in Nayarit State to tourists, and consequently, to large developers. The result was a dramatic shift in the local economy from fishing and agriculture to tourism and infrastructure development.

The shift displaced local residents, most of whom are poorly educated peasants and lack the know-how and capital to capture the changing market. In response, Cambiando Vidas--"Changing Lives," an educational organization, launched a comprehensive, multifaceted rural development program with complementary enterprise and social service components to preserve the local community and provide new livelihoods for its residents.

Cambiando Vidas built a "tool lending library" where residents can borrow hand and power tools and use them as implements in economic activities tied to tourism and construction. The second social component is a vocational training program that teaches construction skills--masonry, electric, plumbing, and carpentry--to unemployed youth and adults in the community. The library supplies tools for the vocational training program.

Next, Cambiando Vidas will create local employment by launching a construction business and bidding directly on small building contracts, where it has identified a viable niche, as well as subcontracting to large developers. Profit from the construction business will be used to fund the secondary education and vocational training program. Many nonprofit organizations run multi-unit mixed operations, each with different social programs, financial objectives, market opportunities and funding structures.

A museum for example, in addition to educational art exhibits, might have both a for-profit catalogue business and highly subsidized research and acquisition operation. Like all social enterprises, mixed models come in a variety of forms depending on the organization's age, sector, social and financial objectives and opportunities. The diagram is representative of complexity, not conformity of organizational form.

This model is common among large multi-sector organizations that establish separate departments or subsidiaries for each technical area--i. In nonprofits with mature social enterprises, mixed models are the convention, not the exception, a result of expansion and diversification. Council of Community Clinics CCC is a San Diego-based nonprofit membership organization comprised of community clinics exteensive the uninsured and underinsured poor through three linked but separate entities.

The indome entity is a nonprofit advocacy organization, Council of Community Clinics CCC that lobbies to change legislation to strengthen the health safety net for at-risk populations. The second entity, Community Clinic Health Network CCHNis a nonprofit subsidiary of CCC that provides technical assistance services to build capacity of community clinics in several areas of healthcare and management.

The third structure is a for-profit, Council Connections is a wholly owned subsidiary of Inocme. Council Connections is a group purchasing business that buys bulk pharmaceuticals, office supplies, medical surgical supplies, and laboratory services at a discounted bilteral prices, then sells them to community clinics at a mark-up, but at substantially cheaper prices than retail.

An organization can franchise its "proven social enterprise model" and sell it to other nonprofits to operate as their own business. Franchising enhances nonprofit organizations that have viable, yet non-scaleable social enterprises, through replication. Hence, the franchise model enhances scalability and social value creation through replication. Purchasers pay capitw fees to receive the social enterprise model, methodology, etc.

Buying a franchise enables nonprofit organizations to focus on running operations of a proven enterprise, rather than worrying about what type of maegin to start, which products to sell, or what markets to enter. The franchise itself can be any successful and replicable social enterprise. The social enterprise model may be any of those listed, depending on the type of business and objectives. An integrated microfinance organization sells its trademarked methodology, which combines health and business education with financial services, to credit unions in developing countries.

The US-based parent organization provides consulting and ongoing technical support to franchisees. This approach allows the franchiser to earn money, achieve greater social impact via scale, and keep costs low by leveraging its program methodology and credit unions' infrastructure. The Committee for Democracy in Information Technology CDI is a nonprofit organization with a two-fold mission: to promote digital inclusion and create awareness of citizen's rights principles through the use of information technology.

CDI works in partnership with schools and community-based associations through a social franchise model providing free computer equipment, software, and educational strategies. Each school is managed as an autonomous unit and is self-sustainable through contributions made by students, who provide the necessary funds to cover the maintenance costs and the instructors' salaries. Its methodology was developed by CDI in partnership with specialists from the Campinas State University in Brazil, Pre operates in 19 Brazilian states.

CDI is continuously expanding its national and international network and is presently located in Brazil, Colombia, Chile, Uruguay, Mexico, Guatemala, and Honduras. This educational approach to information technology has also been complemented with extensive job training and an internship program in high-tech related fields, catalyzing a powerful multiplying effect in improving the lives the students and their communities.

An interesting example is a group of CDI students from the shantytowns of Rio de Janeiro who first interned with StarMedia Brazil and later went on to secure positions teaching technology and Internet PDF Per capita income and the extensive margin of bilateral trade to youth with Globo. The private-nonprofit partnership model of social enterprise is a mutually beneficial business partnership or joint venture between a for-profit company and a nonprofit organization.

The partnership may occur with an existing social enterprise, or may result in the creation of a new entity or a profit center. The social enterprise may or may not be mission-related and leverages the nonprofit organization's assets, such as relationships with their target population, community, brand, or expertise. Partnership benefits for the nonprofit are financial return, marketing and brand equity, and in cases where the activity is mission-related, social impact.

The market is most often external--the public, but examples exist where the paying customer and the client are one. The private-nonprofit relationship may be structured as a joint venture, a licensing agreement, or formal partnership. It is worth noting that nonprofits use the term "partnership" loosely to refer to corporate philanthropy or cause-related marketing. The private-nonprofit partnership model is a partnership based on active operational involvement in a social enterprisenot thw a business relationship, which could be a funder, customer or supplier represented in other social enterprise models.

Theoretical example: an environmental organization forms a partnership with a travel and touring company to create a new "Eco Enterprise. The touring company handles marketing, and manages tourists and the touring logistics. The two organizations share the return. The nonprofit uses the proceeds to fund its environmental programs and the company retains or distributes their profit.

Benefits for the for-profit are: access to the eco-tourist market, conservation PF and local people, and an "eco-friendly" public image. Helados Bon is large progressive ice cream company based in the Dominican Republic, whose interest in diversifying its Pdr led to the introduction of a new flavor, macadamia, and the opportunity to help the country's eextensive. A partnership was forged between Helados Bon and an environmental nonprofit, Plan Sierra. The business idea leveraged each of the partners' knowledge and assets, marrying Helados Bon's ice cream industry expertise with Plan Sierra's conservation efforts.

The social enterprise that emerged helps local farmers grow macadamia trees and reforest farmland through the sale of delicious ice cream. Macadamia trees, which are capable of growing to fapita height of over meters on infertile land, are ideal for reforestation and conservation of natural resources. In the partnership, Plan Sierra manages and coordinates local farmers growing macadamia nuts which are used to make the new ice cream flavor; Helados operates the production and sale of the macadamia ice cream.

The social enterprise earns one peso for each double macadamia ice cream sold to fund macadamia conservation efforts and local farmers gain a steady customer trdae their macadamia nuts. Helados Bon also disseminates information about conservation and the importance of growing macadamia to its customers. Plan Sierra uses the ans generated by the social enterprise to promote and develop its macadamia program.

The partnership is a win-win proposition for all of those involved: Helados Bon increased its sales; Plan Sierra achieved the reforestation of more thanhectares with macadamia trees; and farmers have benefited with higher paying jobs and marketable crops. A social enterprise may be structured as a department, program or profit center within a nonprofit and lack legal definition from its parent organization.

It may also be a subsidiary of its nonprofit parent, registered either as a for-profit or nonprofit. Many organizations use a mix of different structures simultaneously. Social enterprise is structured as a department extennsive profit center within the parent organization. The social enterprise may or may not tarde share space with the parent.

From a legal, financial, management, and governance perspective the enterprise is internal to its nonprofit parent. Systems, back office, staff, and leadership are integrated. Any of the operational models can be structured internally within the parent organization; bilteral, embedded and integrated social enterprises are the most common forms using this structure. Social enterprise is structured as a separate legal entity, either a for-profit or a nonprofit.

In this case, the social enterprise may or may not physically share space with the parent. From a legal, financial, management, and governance perspective the enterprise is external to its nonprofit parent. If staff, overhead, or back office is shared, this is done so on a formal contractual basis as a business relationship. Any of the operational models can be structured as a separate entity from the parent organization; however, integrated and external social enterprises are the most common forms PDF Per capita income and the extensive margin of bilateral trade this structure.

Social enterprise is the same entity as the parent organization, meaning PD that there is NO parent or host organization, rather the social enterprise is the only activity of the organization. There is no delineation between program, administrative and infrastructure aspects indicating the existence of two or more types of activities.

This type of social enterprise may evolve into one of the other structures by adding new enterprises or social programs. A social enterprise may be incorporated either as a for-profit or a nonprofit. The decision to incorporate the social enterprise separately from the parent, and capia to do so as a for-profit or nonprofit is driven by one or more of the following factors: The law in many countries does not make provisions or recognize the social enterprise income-generating nonprofit as legitimate or legal.

Therefore, nonprofit organizations risk losing their nonprofit status and associated privileges by launching a social enterprise or income-generating activity. Some countries have made special provisions in the law and tax PD for social enterprises. Legal issues are complex and vary widely. The environment is more enabling in some countries than in others; however, there is still work to be done trare the world on this issue.

In any case, the legal situation must be analyzed on exensive country-by-country and case-by-case basis. While the legal environment varies from country to country, a general lack PDF Per capita income and the extensive margin of bilateral trade clarity in the law about the legality and tax treatment of NGOs engaged in economic and commercial activities in emerging market countries results in a variety of practical and ethical challenges for many NGOs.

Attempts to remain "off the radar screen" of local authorities forces social enterprises to remain small and thus unable to maximize their profit potential or achieve scale. In some instances, local authorities or "tax police" take advantage of the ambiguous laws and extort social enterprises, requiring them to bilateeral bribes or exorbitant taxes that can threaten the survival of both the enterprise and the NGO. In other cases, governments have eagerly looked to social enterprises as a new mechanism for building the tax base, and charged high taxes on earned income, crippling social enterprise performance and preventing them from achieving their purpose of funding social activities.

Where mb trading forex ninjatrader 8 charts laws are clearer, reporting requirements can be burdensome, penalties harsh, or tax incentives nonexistent. Furthermore, the lack of clarity in the law presents an ethical dilemma for NGOs as they struggle to promote and preserve a reputation of transparency and accountability to their constituents, donors, and public-at-large, while also ca;ita to identify the most favorable tax treatment for their social enterprise.

Although the microfinance field has made PDF Per capita income and the extensive margin of bilateral trade into creating an enabling environment for NGO financial service businesses and raising awareness about NGO income generated as a means to achieve sustainability, the legal environment for social enterprise development can still be strengthened. Advocacy efforts have the opportunity to dovetail with the work of microfinance, broadening governments' understanding of social enterprises not as a mechanism to build the tax base, but rather as an instrument to replace government funds that draw from taxes.

An unambiguous and favorable legal environment, such as tax incentives to social enterprises, would not only foster growth in this field, but would also serve to increase integrity and clarify ethical questions and public misperceptions regarding NGO commercial activities. Social enterprises are capitalized through a variety of different instruments: grants, loans, charitable contributions, program-related investments soft loans, etc.

The type of funding a social enterprise is able to obtain depends on its maturity, reputation, availability of funding PDF Per capita income and the extensive margin of bilateral trade capital marketand legal structure. On the latter point, an organization may choose a legal structure that is consistent with the funding it seeks. For-profits are often barred from receiving philanthropic funds and soft loans, whereas nonprofits have difficulty obtaining commercial funds--borrowed capital.

In this case, legal status may be guided by the requirements for the most suitable type of funding. Undercapitalization is a problem as common in private business as it is for social enterprises, particularly for capital intensive enterprises such as manufacturing. For-profits have the ability to raise equity investments that, depending on the local laws, are not an option for nonprofits, whose assets are considered publicly owned.

Some social enterprises opt to incorporate as a for-profit and many mature nonprofits convert their legal status in order to capitalize the business with private funds in exchange for equity. In the early stage, social enterprise incubation usually occurs within a nonprofit parent, which also og to capitalize the nascent enterprise. Frequently the cspita or executive director will opt to incorporate the social enterprise as a separate legal entity simply out of preference.

Integrating business practices and income-generation into a nonprofit organization rocks institutional culture and tests capacity, potentially threatening core social service programs of the parent organization and causing internal strife or mission drift. Also, when the business is unrelated to the organization's mission, it can be difficult to gain stakeholder and staff support.

In these instances, leadership may prefer to separate the entities both physically and legally. Three different types of social enterprise ownership structures exist: private, public and collective. Ownership can be either a driver for a social enterprise's legal structure or a determinate of it. In most counties nonprofits are considered "public good" or property of the public, thus calling into question the legal ownership of their assets, goodwill, brand, etc. Public ownership may be practiced in the form of decision-making and participation as long as the organization is a going concern.

Similar to traditional nonprofits, a public ownership structure indicates that governing board of directors directs strategy and financial oversight. Legally, nonprofit ownership becomes an issue if the owner s wants to sell the social enterprise, or close it and liquidates the assets. Private ownership of a social enterprise offers benefits of equity financing, unambiguous asset ownership and valuation, and the freedom to sell the enterprise.

Conflict can arise between fundamental motives of profit-making and mission. For-profits must minimally breakeven and often have tax liabilities, limiting the type and purpose of the enterprise to more productive and financially driven models than those that may thd a social needyet run at a deficit. Nonprofit Organizations -- the classic nonprofit organization is considered "public good," or property of the public. Nonprofits may own a for-profit or nonprofit social enterprise subsidiary.

In the case of the for-profit, the nonprofit may ans the subsidiary or its assets, or raise equity for new investments; whereas the nonprofit subsidiary may raise charitable funds, but not equity and is subject to donor requirements and nonprofit law regarding ownership of assets and use of revenue. The nonprofit parent of the nonprofit subsidiary may acquire the assets of the social enterprise if the business fails or is closed.

Public Shareholders -- a consortium of nonprofit stakeholders that "hold shares" in a social enterprise nonprofit or for-profit. Often the shareholders are comprised of parent organizations, partners and donors that have an existing program or financial stake in the social enterprise. Legal issues are similar for bilatreal public entities under this ownership structure. The public shareholder model is frequently used as an exit strategy when a parent organization seeks to spin traed a social enterprise into an autonomous legal entity, yet wants to maintain some decision making power and preserve the mission during the transitional period to independence.

Nonprofit cooperatives are a common form of social enterprise particularly in developing countries. Driven by their social mission, most nonprofit cooperatives have Pr legal incorporation similar to other types of nonprofits, and are thus entitled to similar benefits as well as limited by similar restrictions as nonprofits.

In practice, owners are "members" of the nonprofit cooperative and though they may have programmatic and business decision-making authority and realize certain advantages, they do not actually own the brand, infrastructure, assets, methodology, programs, revenue, etc. The nonprofit cooperative requires oversight by a board of directors. For-profit cooperatives -- "cooperatively" or group owned social enterprise registered as a for-profit is age-old structure in both developing and industrialized countries.

These cooperatives are profit-driven structures whose social contribution is aimed at improving economic conditions of a particular group, such as farmer or artisan cooperative. Often for-profit cooperatives such as Equal Exchangeour example of Embedded Social Enterprise are worker owned. Owners may also be called members and exercise legal rights and decision-making authority tied to property ownership: to sell, dissolve, liquidate the business and its assets, or expand the business and use revenue as they see fit.

Owners may elect distribute profits to themselves or retain earning to reinvest in their business. Sole proprietorship -- in several emerging-market countries social enterprises are owned by a single individual to bypass laws restricting nonprofit commercial activity. In this situation the social enterprise owner is often the parent organization's executive director or a member of its board of directors.

This structure introduces a risk of the business being cannibalized PDF Per capita income and the extensive margin of bilateral trade an unscrupulous owner. Unfortunately in many countries, until the legal environment becomes more enabling, this is the only ownership option available. These entities though created to support a nonprofit are subject to local taxes and laws governing private businesses. Private Shareholders -- in developing countries, the financial service industry is the leading example of shareholders and investor ownership of social enterprises microfinance institutions, community or rural banks, credit unions, etc.

Microfinance organizations that successfully commercialize extenwive services and transform into for-profit financial institutions may sell shares to individuals, the government, other nonprofit organizations and donors to raise equity. Public sector owners are not required to be stakeholders in the parent organization or social enterprise other than as a social investor.

Ownership shares may also be distributed to the target population as part of the social model. Benevolent Owners -- private ownership of social enterprises generally falls under the rubric of socially responsible business. In industrialized countries there are a growing number of small businesses created for the purpose of contributing to a social cause and generating revenue for their owners. In the United States, practitioners have formed their own industry organization: Social Venture Network.

These businesses operate in accordance to standard laws for small business. For more information, see also the Business for Social Responsibility web site.

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Preliminary versions of economic research. In the U.S. labor market unemployed individuals that are actively looking for work are more than three times as likely. Before contacting us: Please check our site map, search feature, or our site navigation on the left to locate the information you seek. We do not routinely respond to. PAGE 1 McAfee: Introduction to Economic Analysis, July 24, i Introduction to Economic Analysis by R. Preston McAfee J. Stanley Johnson.