MGT 167 Lecture Notes - Lecture 5: Social Enterprise, Toms Shoes, Making Money
12 Jun 2018
School
Department
Course
Professor
Lecture 5
Intro to Social Enterprise
• the est a to predit the future is to reate it
• social enterprise looks at things from business lens
• challenge was finding way for clients to pay to cover the costs
• they do the back office (accounting, payroll, number stuff) for the social enterprises and
nonprofits
• 10,000 nonprofits in SD, 60% have no employees with budgets of $50,000/yr
• bring nonprofits in and teach them business skills like they taught them how to make a
revenue model and had them make a pitch to investors
• they take a percentage (9%) of money that is made to handle all of their bank stuff and
legal obligations
• most non-profits do’t hae a usiess pla
• non-profits are kind of dumb, they frankly should go away. There are better models out
there to address your social issue. Plenty of non-profits are addressing same issue as
you and not enough donors out there and they get to choose which one to give their
monetary support
• Social enterprise
o Company with social issue and business model??
o company that’s goal is to address a soial goal as ell as a usiess goal
o Making money (profit) while also positively impacting society (purpose)
o E. To’s shoes, goodill, solo eeear, issio edge, it house offee house
▪ If it heights offee is’t good, there not necessarily going to go to
starbucks, but they wont necessarily come back
• Balance purpose and profit
o More profit you make, the more ppl you can help
o You a’t hae purpose ithout profit
o If usiess does’t ork, ou at hae ipat o people
o Pitchins for good?? Catering business
▪ Ca’t ahiee soial issio if food is’t good
• Measuring your social impact
o Cit Height’s Coffee House
▪ Providing coffee
▪ Providing jobs to underserved adults
▪ Making them more self-sufficient
▪ They are no longer on welfare and governmental support
▪ Look at
• # of employees hired/trained
• # of employees who move on to new jobs
• # of employees who get off public assistance programs, etc.
• Nonprofits he works with
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