3 Types of Social Enterprise Models

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3 Types of Social Enterprise Models
Anneke Zwart, Student (University), Netherlands, Moderator
The concept of ‘social enterprise’ is often understood differently by different people, mainly because it is an umbrella term which includes various business models. Cheng and Ludlow (2008) introduce a framework that outlines three models of social enterprises. Each of these types is different in the way through which its activities create financial and/or social returns. This framework is useful for investors and others in thinking about the consequences of certain investments/activities in both social and financial terms. The following three social enterprise models exist:
1. PROFIT GENERATOR MODEL: within this business model, the activity itself is only focused on the financial returns, which can then be used - after having created the returns – to create social returns. In other words, the trading activity has no direct social impacts; only an indirect effect through using the financial returns to generate social impacts. Examples are: companies with a CSR pr...Sign up


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