Social Business in Bangladesh

Topics: Non-profit organization, Management, Strategic management Pages: 3 (832 words) Published: October 6, 2012
Social enterprises apply business solutions to social problems. The ultimate goal is to achieve sustainability by enabling non-profits to support themselves financially in innovative ways instead of relying solely on grants and donations. Since there are no shareholders in a non-profit organization, the profits from the related social enterprise are completely re-invested in the work of the organization. The emergence of revenue-generating activities for non-profits has created a new operating model where business principles, market characteristics and values (competition, diversification, entrepreneurship, innovation, and a focus on the bottom line) co-exist and work with traditional public sector values like responsiveness to community and serving the public interest. Essential to the success of a social enterprise is an effective business model. A business model includes two key elements: operating strategy that includes internal organizational structure and external partnerships that are crucial for creating the organization’s intended impact; and, 2.a resource strategy that defines where and on what terms the organization will acquire the resources (financial and human) it needs to do its work. The business model for a social enterprise is the channel that the social entrepreneur converts inputs into outcomes; the generation of both social value (measurable impact) and economic value (revenue). A social enterprise can be integrated with the non-profit organization in one of several ways: Embedded:

The enterprise and the social program are one and the same •The business is created to serve clients (central to the mission) Integrated:
The business activities overlap with the social programs •The business is created as a funding mechanism and to expand/enhance the mission of the organization External:
Social and business activities are separate and may or may not be related to the mission of the organization •The business is created mainly...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • The Business Case for Social Responsibility Essay
  • The Three Legal & Ethical Issues in Business in Bangladesh Essay
  • Essay about Business
  • The Social Responsibility of Business to Increase Its Profit Essay
  • The Business Case for Corporate Social Responsibility Research Paper
  • Real Estate Business in Bangladesh Essay
  • social business Essay
  • social purpose business plan Essay

Become a StudyMode Member

Sign Up - It's Free