Introduction - about social entrepreneurship The SENSES project co-funded by the European Union funds (ERDF and IPA) For more information check the official website: http://www.interreg-danube.eu/senses

1. Social Entrepreneurship
Introduction
NESsT
2018

2. Definition – European Comission, 2011
Social enterprises are
• Those for who the social or societal objective of the common good is
the reason for the commercial activity, often in the form of a high level
of social innovation
• Those whose profits are mainly reinvested to achieve this social
objective
• Those where the method of organisation or the ownership system
reflects the enterprise's mission, using democratic or participatory
principles or focusing on social justice

3. Social Enterprises break the cycle of poverty
Social enterprises’ primary goal is to solve critical social problems by conducting professional entrepreneurial
activities.
Main characteristics:
 Social enterprises generate both financial and social returns.
 Rather than depending on donations to reach their impact goals, these small and growing
businesses reinvest their income into solutions to critical social problems.
 They are self-sustaining and scalable.

4. TRADITIO
NAL
NONPROF
TTS OR
CSOS
NONPROFIT
S OR
CHARITIES
WITH
EARNED
INCOME
STRATEGIE
S
SOCIAL
ENTERPRI
SES
FOR PROFIT
COMPANIES
WITH CSE OR
SOCIAL IMPACT
INCORPORATED
AS PART OF
THEIR CORE
BUSINESS
FOR-
PROFIT
COMPANI
ES
Social first-
social
objectives
constitute the
mission and
supersede
financial
objectives -
usually
funded with
donor
funding.
Earned income
activities usually
tied to the
mission
activities and
designed to
generate
income for the
organization.
Pursue both social
and financial goals;
can be nonprofit or
for profit
organizations; and
should be
sustainable.
.Financial first-
financial objectives
superseded social
objectives- and
social impact is
designed through
CSR Programs or
tied to the value
chain to the
company.
Purely for-profit
companies that
base performance
on profit.
Position of social enterprises

5. UNIVERSE OF THE SOCIAL ENTERPRISE ECOSYSTEM
Social enterprises
Traditional donor
organizations
Intermediaries,
incubators, catalysts
Financing
organizations
Governmental
sector
Consumer market
Corporations

6. SOCIAL ENTERPRISES – SOCIAL
ENTREPRENEURS
Financing strategy
Leadership skills
Entrepreneurial competencies
Expertise: business, market, social
Time
Business model
Team
Sales
Communication
Social impact
management
Cooperation
Scaling strategy

7. INTERMEDIARIES – INCUBATORS –
CATALYSTS
 Igniting sector growth by
sharing best practices
 Early-stage support for social entrepreneurs to
promote a culture of innovation
 A long-term approach to enterprise
development that ensures adequate
seed funding, capacity
strengthening, strategic business
advising, and opportunities to make
professional connections
 An emphasis on scalability and
sustainability through investment-ready
business models
 A healthy mix of financial,
intellectual, and social
capital leveraged from both
the private and public sectors

8. GOVERNMENT – REGULATIONS
Awareness raising
for the sector
Clear strategy to support strengthening of the field
Supporting regulations:
tax benefits, public procurementProviding with financing mechanisms
Following the recommendations
and best practices of EU and
developed EU countries

9. FINANCING ORGANIZATIONS
Diverse financing tools
according to the development
stage of the organization
(grant, loan, investment)
Patient financing
Also hybrid models, if needed,
including both, „impact first” and
„return first” approaches (combining
various kind of financing tools,
cooperation of financiers)

10. TRADITIONAL DONOR ORGANIZATIONS
Being open for hybrid financing
Shifting from traditional
donor activities towards
venture philanthropy
Supporting the acquisition
of assets and skills
needed to start an
enterprise
Supporting the
operations of catalyst
and incubators

11. CORPORATIONS
Providing with seed money for
the sector from CSR budget
Shifting from traditional donor activities towards venture philanthropy
Incorporating social enterprises into the value chain or
supply chain of the company
Leveraging business
expertise through
volunteer activity of
employees

12. CONSUMER MARKET
Feedback on products and
services of social
enterprises especially in
the local community
Choosing and
recommending
products/ services of
social enterprises
Conscious purchasing

13. 13
Marketin
g
Enterprise
Readiness
Product &
Market
Financial
How can we
reach our target
market?
When can we
have break -
even? What is
the financial
potential?
Business Plan
ENTERPRISE DEVELOPMENT PROCESS
Acquire a methodology, build capacity within your enterprise and minimize risk.
Operations &
Management
How do we
manage this?
What resources
and systems do we
need?
What are we
offering?
What is the market
potential?
What is our
vision? What
capacity and
resources do we
have?