Tips to ensure a social enterprise generates profit

Presented below are some of the most common approaches/frameworks employed by successful social enterprises.

Cross compensation

A social franchise will provide a good/service wherein one group of customers pay for it. Profits acquired from the group are then utilized to subsidize the good/service to another, underserved group.

Skills training/employment

One of the core/key purposes of social enterprise is to provide living wages to beneficiaries/employees via skill development or job training.

Market Intermediary

The social company serves as a distributor, or intermediary, to an expanded market. The beneficiaries act as suppliers of the product or service that is being channeled to a wider/international market.

Also, the social company has to facilitate/enhance trade relationships between beneficiaries and the markets, addressing any concerns that inhibit effective collaboration between the two.

Independent support

A social enterprise provides a product/service to an external market that is distinct from the beneficiaries and the social impact arising from the undertaking. Funds could be employed to corroborate social programs to the beneficiary.


22 Awesome Social Enterprise Business Ideas



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