BU111 Lecture Notes - Lecture 8: Social Venture, Crowdfunding, Market Failure

• School: WLU
• Department: Business
• Course: BU111
• Professor: Sofy Carayannopoulos

Document Summary

Bootstrapping: doing more with less, making do with as few resources as possible: find and make use of free stuff, use other people"s resources where possible (ex. Crowdfunding: initiator + backer + platform: platform: virtual market that brings together initiator and the backer, small amounts from a large number of people, rewards based not investment based. Not creating financial value, but social value. Similar to traditional venture (looking for unmet needs/wants and filling that gap: social ventures look for gaps/market failures in world. Not a charity (business model in place that allows them to generate value to continue creating social value) Maximizing social value; making enough profit to keep doors open. Example of market failure: not enough food to feed people or education. Form of business can vary: importance of attaining social value proposition through legal business form (not for profit, for profit, charity, partnerships with for profits.