Before social entrepreneurs focus on their business plan and execution, they must select a worthwhile business model.
Find a Social Enterprise Business Model That Works For You
Compassion Politics has put together a fantastic list of social enterprise business models that you could choose from.
The 12 social enterprise business models that they put forward include:
- Collaborative Consumption
- Training, Networks, Events Association for Social Entrepreneurs
- Sustainable Sourcing
- Training and Job Support for the Disadvantaged
- Microfinance and Micro Enterprises
- Wholesale Purchasing for Selling to the Poor
- Corporate Social Responsibility Model
- Fair Trade Model
- Social Enterprise Incubator
- Business in a Box or Microfranchises
- Consulting for Green Business, Social Businesses and Non-Profits
- Recycling Businesses
- Wellness and Nutrition Businesses, especially Those Using Sustainable or Green Resources for Developing Countries
Choosing a Business Model for Your Social Enterprise
When you first start out on your social enterprise, you will most likely have to experiment with a variety of business models. Key factors for choosing your business model are the model’s scalability, profitablility, potential for social impact as well as your competitive advantages for executing a certain model.