session 12 - social enterprises

Question 1

what are the three traditional economic sectors? what are each’s goal?

Answer 1

1. private sector: maximise profits for SHs
2. public sector: protect and promote welfare of citizens
3. third sector: pursue general interest of society (e.g., NGOs, non-profits etc.)

Question 2

What new organizational forms are emerging? (big graph)

Answer 2

Social enterprises:
- can focus on profit or/and on social impact
- can receive donations or be a market-based business model
- can be a private company or an NGO

Question 3

What are the 8 types of social business models with commercial purposes?

Answer 3

1. fees for service
2. robin hood
3. bottom of pyramid
4. employment
5. market place
6. pollination
7. unrelated
8. licensing

Question 4

what is the fees for service business model?

Answer 4

Product or service provided to a beneficiary, but sold to a third party (foundation, punlic institution etc)

Question 5

What is the robin hood business model?

Answer 5

Product or service sold to community at large is the same provided to beneficiaries, who pay lower price (Glasses company: who order a pair of glasses, and one is donated to african people)

Question 6

WHat is the Bottom of the pyramid business model?

Answer 6

products or services targeting beneficiaries with very limited resources are redesigned to reduce COGS, price and allow access to disenfranchised group (Grameen bank micro credit)

Question 7

What is the employment business model?

Answer 7

Beneficiaries are part of the value creation process (stuff made by the disabled and then sold)

Question 9

What is the pollination business model?

Answer 9

Product/service sold to community at large has embedded social value (positive social spillovers)
example: the color blind software

Question 10

What is the unrelated business model?

Answer 10

product and services sold are unrelated with products and services provided to the beneficiary

Question 11

what is the licensing business model?

Answer 11

Social organization’s brand licensed to third party that pays fees to use the brand

Question 12

what are six forms of social business models with non-commercial activities?

Answer 12

1. traditional philanthropy
2. subsidised
3. impact philanthropy / impact bonds
4. direct exchange
5. distributive
6. volunteeering

Question 13

What is impact investing?

Answer 13