Jim Schorr*, executive director of Juma Ventures, a leading nonprofit social enterprise, wrote an editorial for the Summer 2006 edition of the Stanford Social Innovation Review entitled "Social Enterprise 2.0." The following are some of the opinions he expressed about nonprofit social enterprise ventures:
- The business models that have been developed during the first generation of social enterprise are not capable of generating positive social and financial outcomes (the "double bottom line").
- The primary problem is that because the vast majority of nonprofit social enterprise businesses are inherently small with potentially low profit margins, they cannot cover the additional costs of their social mission activities.
- Even though social enterprises have had little financial success, they have had remarkable success furthering their social mission objectives.
- A compelling case can be made for a new sustainable model of social enterprise involving ongoing funding subsidies and educating funding sources about such need.
You can read the full article here.
* Jim Schorr is also the co-founder and a board member of Net Impact, a charitable organization of over 7,000 new generation leaders who are committed to using the power of business to make a positive social, environmental and economic net impact. I have been very fortunate to serve on the board of this amazing organization with Jim and other highly respected and committed individuals throughout the country. You can read more about Net Impact here.