Social enterprise models

Corporate Social Responsibility model

The first model is the Corporate Social Responsibility model (CSR). This model is essential for an existing company. It is the model in which firms have an enterprise with an activity that has a relation with creating a positive social impact as against the primary activity of the firm which is to make profit. With this model, firms use some of that financial return generated with the primary business function and finance a secondary activity. u00a0So essentially, companies’ primary goal that follows this model is to have a good venture return. And one assumption that they are based on, and what they need to prove to potential investors, is that their company is selling first. They will generate a central return. And secondly, that the financial return that they will reinvest into their social project will have a positive social impact.

Microfinance model

The microfinance model for companies can be considered intermediaries as providing a service for producers to get their product. In this model, social enterprises have an activity with a direct positive social impact. However, social impact is inversely proportional to their financial return. In other words, the more potential return they will have, the less they will create the microfinance model. Microfinance institutions willingly create better conditions for the not demanding or demanding people, but they charge lower interest rates. All these are costs that will diminish the financial return potential, yet by doing so, the institution creates a fair-trade company that exports territories products. Investors will describe that as sacrificing financial return, but not in a negative way.

WordPress Model

In this model, just like the second model, the firm owner has their enterprise with an activity. The primary activity has a positive social impact, but it differs from the second model because your financial returns are directly proportional. Business leaders are keen to check that their income rates increase without compromising on your social impact. Model enterprises provide substitution because they are trained to operate within the market that provides a product with returns on business income and social impact. An excellent example is from environmentally friendly renewable energy sources. u00a0

In practice

In between is this concept of social enterprise, a vehicle, the institutional form that social entrepreneurs will employ to achieve their goal. And these social enterprises meld and bring together both concerns about mission and margin.

So, let’s reflect on the three concepts inu00a0practical terms. Think about microfinance; Muhammad Yunusu00a0is the man who drove this fundamental global movement and innovation that turned banking upside down and said that banking must be available to the poor because they are the ones who need it most. And he radically changed the terms and the scale of banking to make it accessible to millions and millions of people worldwide. That makes him au00a0social entrepreneur. His social innovation is microfinance, but he needed an institution andu00a0needed a form. He created a social enterprise called Grameen Bank, which would lend money to the poor. So, you need a social entrepreneur, and you need a social relation, but you also need in the middle a form, a vehicle, a social enterprise.

One of the exciting things about social entrepreneurs is that their vehicles range significantly from one person to another. A big question will come up about what type of organization to create, whether for-profit, non-profit or something in between. To give you a little, better sense of all the options, there are many different possibilities available for Social Entrepreneurs. It is an idea of a spectrum, not black or white, one type of organization or not for profits. u00a0But in between those two posts, think about the possibility that their organizational forms and types are spread across those two poles, and they give you more choice than the pure by kind of binary choice of for-profit, non-profit.

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Emmanuel Addo
Founder
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Emmanuel Addo is the founder of the Young Global Leaders Network, an international non-governmental organization registered in six (6) countries namely, Ghana, United Kingdom, Nigeria, Sierra Leone, Democratic Republic of Congo, and South Sudan and has a membership strength of over 15,000 young black professionals, students, graduates, and aspiring leaders.

The organization also operates in 25 other African countries. Emmanuel also doubles as the chief convener and founder of the Young African Leaders Summit, one of the largest continental youth summits in Africa.  

Currently works at Kingston University as a Business Engagement Team Member in their Partnerships and Engagement Department. 

He characterizes energy, integrity, result-oriented, and ground-breaking service in each detail of strategic management, change management, stakeholder management, and leadership acquaintances.
Emmanuel owns a core background in Sociology and Psychology from the University of Ghana.

Leveraging his experience as a youth activist and a dynamic young man, Emmanuel founded the Young Global Leaders Network, a youth organization that comprises young diplomats, young politicians, and aspiring politicians, business/entrepreneurial business leaders with the aim of championing a mutual agenda for the African youth and promoting youth participation in governance as well as promoting entrepreneurial culture.
Emmanuel nurtures an environment of teamwork and has expertise in data collection and analysis as well as both quantitative and qualitative methods.

Emmanuel worked as an Associate Lecturer at the London College of Advanced Management where he delivered a wide range of business management courses that involved principles of marketing, leadership, operation management, and research methods. Emmanuel has always maintained high teaching and learning standards to ensure that his students’ stand out in academic achievements and successful progression. As a stout believer and passionate key player in volunteering; Emmanuel creates quality time to giving back gladly to his community what he has learned and to educate individuals with free consultancy on career development. He is a leader anyone would love to look up to and with great integrity, commitment, and passion to make the world a better place.
Emmanuel worked as Qualifications Manager at the Open University in the UK.

Emmanuel is also the founder of Kickstart Innovation Hub Ltd, the entrepreneurial hub of Young Global Leaders Network.