A Social Venture (also called a

social enterprise A social enterprise is an organization that applies commercial strategies to maximize improvements in financial, social and environmental well-being. This may include maximizing social impact alongside profits for co-owners. Social enterprises ca ...

) is undertaking by a firm or organization established by a

social entrepreneur Social entrepreneurship is an approach by individuals, groups, start-up companies or entrepreneurs, in which they develop, fund and implement solutions to social, cultural, or environmental issues. This concept may be applied to a wide range of ...

that seeks to provide systemic solutions to achieve a sustainable, social objective.

Background

Social ventures may be structured in many forms, including sole proprietorships,

For-profit corporation A for-profit corporation is an organization which aims to earn profit through its operations and is concerned with its own interests, unlike those of the public (non-profit corporation). Structure A for-profit corporation is usually an organization ...

nonprofit organizations A nonprofit organization (NPO) or non-profit organisation, also known as a non-business entity, not-for-profit organization, or nonprofit institution, is a legal entity organized and operated for a collective, public or social benefit, in co ...

non-governmental organizations A non-governmental organization (NGO) or non-governmental organisation (see spelling differences) is an organization that generally is formed independent from government. They are typically nonprofit entities, and many of them are active in ...

, youth groups,

community organizations Community organizing is a process where people who live in proximity to each other or share some common problem come together into an organization that acts in their shared self-interest. Unlike those who promote more-consensual community bui ...

, and more. Typically, government organizations are not considered to be social ventures, yet even government organizations can adopt entrepreneurial practices, possibly partnering with independent organizations, to explore the innovative methods for providing social services. Elkington and Hartigan define three models for social ventures: leveraged nonprofit, hybrid nonprofit, and

social business Social business was defined by Nobel Peace Prize laureate Professor Muhammad Yunus and is described in his books. In these books, Yunus defined a social business as a business: * Created and designed to address a social problem * A non-loss, no ...

. In the leveraged nonprofit venture the entrepreneur uses external partners for financial support in providing a

public good Public good may refer to: * Public good (economics), an economic good that is both non-excludable and non-rivalrous * The common good, outcomes that are beneficial for all or most members of a community See also * Digital public goods Digital pu ...

. On the other hand, the hybrid nonprofit venture recovers a portion of its costs through sales of its goods or services. The social business venture generates profits, but rather than return those profits to shareholders, like commercial ventures, it reinvests those profits to further the social venture and the resulting social benefits. The distinguishing characteristic of the social venture versus the commercial venture is the primacy of their objective to solve social problems and provide social benefits. The social venture may generate profits, but that is not its focus. Rather profits are a possible means to achieve sustainability in providing a social benefit. The problems addressed by social ventures cover the range of social issues, including poverty, inequality, education, the environment, and economic development. The context in which social ventures operate is very complex as they are trying to bring about solutions where markets or governments may have failed or actually impede solutions. Further, these ventures are trying to provide solutions where money is usually in short supply—often these ventures have little assurance that their services can be paid for by those they seek to serve.Martin, Roger and Sally Osberg (2007). "Social Entrepreneurship: The Case for Definition." ''Stanford Social Innovation Review'', Spring:28-39. These conditions necessitate that the social entrepreneur to be creative, adaptable, and determined in finding new solutions to problems.

References

{{DEFAULTSORT:Social Venture Social entrepreneurship Entrepreneurship Sustainability Sustainable development