88 Questions
What is the primary goal of social enterprises?
To tackle social problems and challenges
How do social enterprises differ from traditional businesses?
They have a social mission as their core purpose
What happens to the profits made by social enterprises?
They are reinvested into the business or local community
What is a characteristic of social enterprises?
They have a commercial activity
What is the minimum percentage of income that social enterprises aim to derive from commercial activity?
50%
What is a key feature of social enterprises' governance?
They have community accountability through a co-operative structure or management by voluntary trustees
What drives the activities of social enterprises?
An explicit social aim
What is the relationship between social enterprises and the voluntary sector?
They can draw upon best practice from each other
What is a potential source of income for social enterprises besides investments?
Local government grants
What is the primary goal of social enterprises in terms of scaling up?
To create employment opportunities
What is a characteristic of entrepreneurial readiness in social enterprises?
Double aims of equal importance
What should a social enterprise mission statement explain?
What the enterprise will do, how it is entrepreneurial, and why it is important
What is a benefit of having a good mission statement?
It provides focus and attracts support
What should a social enterprise mission statement specify?
What the enterprise will and will not do, how it creates and measures value, and how it innovates or adapts
What is an improvement in the revised XYZ mission statement compared to the initial one?
It is more specific about the organization's intended actions
What is a characteristic of mixed funding in social enterprises?
Open and responsible decision-making and governance
What distinguishes a social enterprise from other types of businesses?
It reinvests profits into the business or local community.
Which of the following is an unethical business practice?
Adjusting business expense accounts for personal profit
According to the business model for Boaz and Ruth, who are considered strategic resources?
Founder's attributes and donations.
Which value is NOT typically associated with co-operatives?
Competitiveness
Which entity is NOT listed as a partner in the business model description for Boaz and Ruth?
International NGOs
What component links the vulnerable population to job training in Boaz and Ruth's model?
Commercial enterprises
What is an example of a WISE (Work Integration Social Enterprise)?
A recycling organization focused on employability training
Which of the following is a demand side threat to a social enterprise?
Product finding no market.
Which of the following is a traditional ethical value held by co-operative members?
Openness
Which of these is not aligned with the ethical values of co-operative members?
Misleading for contracts
What is a common reason for the failure of many social enterprises?
Persistent lack of income.
What kind of social objectives are valued in a social enterprise?
Specific, measurable, and realistic goals.
What is a key characteristic of a co-operative?
Equity
What does a supply side threat entail for a social enterprise?
Too much capital needed or ongoing costs that are too high.
What is a key aspect of social values in business?
Environmental sustainability
What is an example of ethical behaviour in business?
Providing quality goods and services
What is a key principle of empowerment in business?
Giving employees more autonomy
What is a benefit of good employment practices?
Fair pay and job satisfaction
What is an example of unethical behaviour in business?
Using insider knowledge for personal gain
What is a key aspect of transparency and trust in business?
Openly communicating with stakeholders
What is a benefit of co-operation between enterprises?
Increased collaboration and innovation
What is a key aspect of equality in business?
Treating all stakeholders with dignity and respect
What type of measures are used in the Ashoka metrics?
A mixture of binary and continuous measures
What is benchmarking in the context of social enterprises?
Comparing performance to another organization in the field
What is Social Return on Investment (SROI) attempting to quantify?
Both economic and social impacts of social enterprises
What is enterprise value in the context of SROI?
Net revenues minus total expenses, measured in dollars
What is social purpose value in the context of SROI?
Impact of the enterprise on people's lives
What is blended value in the context of SROI?
Economic + socioeconomic value of the enterprise
What is typically the case for social enterprises in terms of enterprise value?
It is typically negative
What are private donations considered to have in terms of social purpose value?
Positive social purpose value
What is a key characteristic of continuous measures?
They use numeric, quantitative data.
Which component involves systematically studying the quality, success, or worthiness of an enterprise?
Evaluation
What is measured using a binary approach?
Occurrence of an event
Which aspect of social enterprises makes value measurement more difficult?
Maximizing social impact
What type of measurement compares performance to a schedule or timeline in a plan?
Developmental
Which component is defined as an organization’s ability to attain desirable outcomes?
Effectiveness
What kind of scale could range from 'very effective' to 'very ineffective'?
Rating scale
Which of the following is not a possible target for measurement in a social enterprise as per Figure 5.1?
Marketing
What value is added to calculate the social purpose value?
Social cost savings
How is the Blended index of return calculated?
Sum of Enterprise value and social purpose value divided by philanthropic investment
Which measure might make social enterprises appear inefficient compared to commercial enterprises?
Net revenue/total assets
What does the Enterprise index of return measure?
Enterprise value divided by philanthropic investment
At what point in Figure 5.3 is mission adherence maximized?
R*
What is included in the calculation of enterprise value?
Value of sales
What represents a common tradeoff for social enterprise managers?
Choosing between delivering services and raising funds
What is the optimum point of mission adherence referred to in Figure 5.3?
Mmax
What can a social venture do after winning and wanting to move on?
Redefine to meet a new social mission
What is likely to happen to many new social organizations within their first four years?
Facing high failure rates
How should the failure of a social enterprise primarily be interpreted?
As a market mechanism at work
Which type of organizations were noted as being particularly fragile in the 1990s?
Religious and arts organizations
What opportunity arises from the failure of one social enterprise?
A chance for another organization to succeed
What is NOT a potential outcome for social ventures after achieving their mission?
Expanding into international markets
Which growth strategy involves finding new consumers for existing services?
Market driven growth
What competitive force involves the threat of new entrants to a market?
Ease of entry
In the context of social enterprises, what do socio-economic changes influence?
Ability to create social value
Which example best represents product diversification?
College Summit advising colleges on how to reach low-income teens
Which factor represents a parallel threat to social enterprises?
Substitutes for service
What is essential for a merger proposal in a growth strategy?
Willingness to partner
Which competitive force involves clients finding alternative ways to meet their needs?
Substitutes
What does product development in social enterprise growth involve?
New activities or programs
What type of growth strategy involves market penetration?
Providing service to more clients in the same market
What does competition with other groups serving the same clients represent in social enterprises?
Competitive pressure from rivals
What is a key element in the intrapreneurial process?
Entrepreneurial personnel
What characteristic of social entrepreneurship involves both degree and frequency?
Intensity
Which practice within an organization helps to create an intrapreneurial environment?
Encouraging informal communications
What is often necessary to support the implementation of ideas in an entrepreneurial process?
Resource allocation
Why is it important for an organization to encourage the development of new ideas?
To foster innovation and growth
Which groups are typically resistant to market-based change?
Community relationships
Which dimension of entrepreneurial intensity involves incremental improvements?
Degree
What is a common challenge during social venture growth?
Managing human resources
How can an organization make innovation a goal?
Rewarding innovation
What can trigger an intrapreneurial process within an organization?
A triggering event
Learn about social enterprises, businesses that trade to tackle social problems and challenges, and how they reinvest profits back into the business or local community.
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