These models outline how ventures create change through their operations, structures, and approaches. From seamlessly integrating impact into core operations to fostering change through supply chains, let’s unravel the five impactful models that are shaping the way businesses drive positive change.
In the dynamic landscape of social enterprise, where business meets impact, a range of innovative models has emerged to tackle pressing societal and environmental challenges. These models outline how ventures create change through their operations, structures, and approaches. From seamlessly integrating impact into core operations to fostering change through supply chains, let’s unravel the five impactful models that are shaping the way businesses drive positive change. You’re enterprise can fit into more than one impact model.
1. Impact Through Prosperity: The better the business does, the higher the impact it has
This model hinges on the idea that the better a social enterprise performs financially, the greater its positive impact becomes. The very act of running a successful business leads to increased resources for addressing societal issues. Hire Up embodies this approach, where business growth directly translates into more job opportunities for marginalised communities. As the business prospers, so does its capacity to drive meaningful impact.
2. Embedded Impact: Impact is Build into the Operating Model
Incorporating impact into the core operations of a business defines this model. It’s about going beyond philanthropic activities to ensure that the fundamental way the business operates contributes to positive change. A shining example is Streat, which not only offers culinary experiences but also uses its operations to train and employ at-risk and homeless youth. By embedding impact within their daily activities, these enterprises create sustainable pathways for transformative change.
3. Impact Created Through Supply Chain
Some social enterprises channel their impact through their supply chains, ensuring that every step of the production process generates positive change. Etiko, a brand offering ethical and sustainable clothing and footwear, exemplifies this model. By sourcing materials responsibly, supporting fair labor practices, and promoting eco-friendly production, Etiko exemplifies how every aspect of a supply chain can contribute to broader societal goals.
4. Profit Share: Donating Large Portion of Profit to a Cause
In this model, social enterprises commit to sharing a portion of their profits with initiatives that foster positive change. Who Gives A Crap follows this path by donating 50% of its profits to building toilets and improving sanitation in developing countries. By linking financial success to societal progress, businesses like these ensure that their growth directly contributes to addressing pressing global challenges.
5. Impact Created by Shared Ownership Structure
This model entails sharing ownership with stakeholders who are deeply committed to the social enterprise’s mission. When a nonprofit organisation acquires or invests in a social enterprise, they create a powerful alliance. This approach extends the reach and impact of both entities, merging the strengths of business innovation with the depth of mission-driven organisations.