This document discusses different types of social ventures and business structures for social enterprises. It describes for-profit corporations, non-profits, charities, partnerships, sole proprietorships, and cooperatives. It also addresses business models for social enterprises, including how they create, deliver and capture value. The document provides an overview of the development process for social enterprises, including opportunity review, business planning, and project status reviews. It concludes with references on social enterprise financing and legal structures.

1. Dr Anis Amira Ab Rahman 2015

2. SOCIAL
ADMINISTRATION
SOCIAL
ENTERPRISES
PUBLIC
ENTERPRISES
PRIVATE
INDUSTRIES
Social Purpose
Primary
Objectives Of
The Enterprise
Commercial
Purpose
Public
Ownership
Private
Dr Anis Amira Ab Rahman 2015

3. TYPES OF SOCIAL VENTURE
Dr Anis Amira Ab Rahman 2015

4. For-profit Corporation
Partnership
Sole Proprietorship
Non-profit Corporation
Charity
Co-operation Corporation
Dr Anis Amira Ab Rahman 2015

5.  pay corporate tax
 cannot access grants
 cultural/ psychological
barriers with operating a “for-
profit social business
For-profit Corporation
 incorporated under the Business Corporations Act (Ontario) ( the “OBCA”) or the Canada
Business Corporations Act (federal) (the “CBCA”)
 with share capital
 most flex in terms of profit-
making activities
 can access all forms of
investment (debt, equity, etc)
 provides clarity of purpose
(i.e. the financial bottom line)
 limited personal liability
 Χ
Dr Anis Amira Ab Rahman 2015

6. Charity
 incorporated via Letters Patent under the Corporation Act (Ontario) or Canada
Corporations Act (federal)
 without share capital
 don’t pay corporate tax on
earnings
 can issue tax receipts
 can access many
government/ foundations/
corporate grants
 least flex in terms of profit –
making activities
 limited in the types of
investment you can access (e.g.
equity)
 psychological barriers with
operating a “social business”
 an aversion to “risk taking”
 can lose status if “too
successful”
 Χ
Dr Anis Amira Ab Rahman 2015

7. Sole Proprietorship
 registered via Business Name Act (Ontario) or Canada Corporations Act (federal)
 without share capital
 the simplest (and
quickest)legal form
 you have full control of
business decisions
 flexibility to make business
decision quickly
 no separate filing for
income tax
  unlimited liability!!
 the business is the
entrepreneur
 hard to find investors
 limited creative input (i.e.
you’re the only one with
ideas!)
 less “professional” than
other forms
Χ
Dr Anis Amira Ab Rahman 2015

8. Non-profit Corporation
 incorporated via Letters Patent under the Corporation Act (Ontario) or Canada
Corporations Act (federal)
 generally without share capital
 can access grants
 can access debt financing
 tax exempt as long as
organized and operated for
defined social/ community
benefit
 some NPs are more open to
(limited) risk-taking

 can’t access issue tax
receipts
 limited in the types of
investment you can access (e.g.
equity)
 psychological barriers with
operating a “social business”
 can lose status if “too
successful”
Χ
Dr Anis Amira Ab Rahman 2015

9. Partnership
 registered under the Partnership Act (Ontario)
 with or without share capital
 usually organized using a Partnership Agreement
 similar benefits to sole
proprietorship
 combines skills/
competencies of two people
 can sign contracts and
borrow money in its own right

 for most partnership,
unlimited liability! (at least in
Canada..)
 acrimony between partners
is common
 difficult to find investors
Χ
Dr Anis Amira Ab Rahman 2015

10. Co-operative Corporation
 incorporated under the Co-operative Corporation Act (Ontario) or Canada
Cooperatives Act (federal)
 wither with or without share capital
 well- established structures
 integrated the concept of
“community benefits” already

 cannot issues tax receipts
 generally not exempt from
paying tax
 psychological barriers with
operating a “social business”
 difficulty making decisions
(too many people at the table)
Χ
Dr Anis Amira Ab Rahman 2015

11. Emotional:
Empathy
Cognitive: Moral
judgement/Empathy
Perceived
Desirability
Self-Directed
Self-Efficacy
Others-Directed Social
Support
Perceived
Feasibility
Behavioural
Intentions
Social
Entrepreneurial
Behaviour
Social Enterprise
Cognitive
Emotional
Enablers
Dr Anis Amira Ab Rahman 2015

12. Definition of Business Model
A business model describes
the rationale of how an
organization creates,
delivers and captures value
Dr Anis Amira Ab Rahman 2015

13. Business Model
The business model spectrum revisited
Dr Anis Amira Ab Rahman 2015

14. Social Enterprise Model
Non-Profit Continuum
Gifts Grants
Free for
services
Subsidized
Supported
in part
with other
funds
Self-
sustaining
Supports
itself from
sales
income
Profitable
Income
exceeds
expenses
----Traditional Models---
------Social Enterprise Models-------
Dr Anis Amira Ab Rahman 2015

15. Social Entrepreneurship Business Model
Dr Anis Amira Ab Rahman 2015

16. Dr Anis Amira Ab Rahman 2015

17. Legal Innovation : CIC (UK)
Dr Anis Amira Ab Rahman 2015

18. Legal Innovation : L3C (US)
Dr Anis Amira Ab Rahman 2015

19. Legal Innovation : B Corp (US)
Dr Anis Amira Ab Rahman 2015

20. Dr Anis Amira Ab Rahman 2015

21. 1
2
3
4
5
6
7
Dr Anis Amira Ab Rahman 2015

22. Social Enterprise’s Development Path
Process
Steps
Framework to
support
Process
Overall Portfolio
Strategy
 Review
processes
 Investment
objectives
 Seed pitch
 Seed
Evaluation
 Business plan
 Business plan
Evaluation
 Product
development
plan and status
 Project plan and
status review
Speed
Opportunity
Review
Business Plan
review
Project status review
1 2 3 4
Dr Anis Amira Ab Rahman 2015

23. Social enterprise’s business plan
 Executive summary
 The social enterprise
 The organisation
 The market
 The social impact
 Business development
 People
 Operations
 Finance
 Appendices
Dr Anis Amira Ab Rahman 2015

24. Conclusion
Dr Anis Amira Ab Rahman 2015

25. REFERENCES
 http://www.barnhartlawplc.com/1660/social-enterprise-public-
benefit-corporation-movement-gaining-momentum
 http://www.slideshare.net/socialentrepreneurship/07-entr-aps-1015-h-
class-7-business-model-considerations-for-social-
enterprise?qid=ad96cbb9-33e3-4b75-a965-
6f23d22dbbdc&v=qf1&b=&from_search=4
 http://www.slideshare.net/Alex.Osterwalder/business-models-
beyond-profit-social-entrepreneurship-lecture-wise-etienne-
eichenberger-iqbal-quadir-grameen-bank-grameen-phone
 http://impact.sosense.org/en/blog/finance-paradoxon
 http://tricofoundation.ca/wordpress/2012/03/learning-about-social-
enterprise/
 http://www.slideshare.net/socialentrepreneurship/entr4800-class-5-
part-2-financing-considerations-for-social-enterprises-
9720754?qid=ad96cbb9-33e3-4b75-a965-
6f23d22dbbdc&v=qf1&b=&from_search=3
Dr Anis Amira Ab Rahman 2015