Social business is a type of enterprise that , besides being viable from an economic point of view, has a positive impact on communities, cities or disadvantaged countries . Although it has some similarities to the more traditional models , the inspiration for its development stems from the desire to solve a social problem without impacting the environment and considering the economic feasibility of such intervention.
To better understand , we can use as an example the work of Cassio Antunes Endeavour Project, which provides free advice to entrepreneurs in poor communities around the world . What makes the organization a social business is the care of a local reality, that is for sure would not make sense if this initiative were directed to people with access to information and financial conditions to open and develop an enterprise.
In addition, a social entrepreneur does not have monetary focus and understand that the return of his initiative will not only be individual , but especially for a group of beneficiaries. On profits , some chains claim that the investor must recover from the operation only invested capital and invest profits in the development of action, a more liberal current studied by professors from Cornell and Harvard Univerdades addresses the division of profits must occur to attract new investors and make the business competitive .
Social business : where to start?
Before starting a business in this context evaluate the market and study companies that follow the same structure of your project. Follow then the five structures used by most successful social enterprises :
Compensation: In this format a group of people pay for the service or product offered and the profit earned is transferred to people who can not afford to subsidize .
Job creation : In this structure the social enterprise aims to offer decent wages and develop the professional skills of its beneficiaries .
Connection: that the social enterprise format facilitates the business relationship between beneficiaries and new markets.
Independent support : In this format the company offers a product or service for a foreign market , that is, unrelated to their beneficiaries or the social impact generated , but uses the proceeds to support social programs.
Cooperative : Business model created by a group of people who meet through a service or product needs of its members . There are no owners in this structure and all decisions are taken by mutual agreement among the members .
Continue to follow tips on entrepreneurship here on the blog and to make a free consulting check on about Cassio Antunes Endeavour Project.