Social Entrepreneurship Overview

Social Entrepreneurship

• Social entrepreneurs focus on addressing social and environmental problems through business ventures.
• They aim to aid marginalized sectors, potentially with non-profit, for-profit, or hybrid models.
• Their primary goal is to drive positive change through funding and supporting programs that benefit a cause.
• While profit may be secondary, their main focus is on philanthropic impact.
• Social entrepreneurs often bring innovative solutions to challenges like poverty, education, and healthcare.

Examples of Social Entrepreneurship

• Bambike: A company that makes bicycles from bamboo, located in Intramuros, Philippines.
• Theo & Philo: The first bean-to-bar chocolate maker in the Philippines, using Philippine cacao beans.
• Bayani Brew: Offers healthy flavored teas made from locally harvested leaves and root crops by Filipino farmers.

Business Planning for Social Entrepreneurs

• SWOT Analysis:
  • Stands for Strengths, Weaknesses, Opportunities, and Threats, a crucial tool for informed decision-making.
  • Helps evaluate internal factors (strengths and weaknesses) and external factors (opportunities and threats).
  • Provides a framework for understanding business advantages, disadvantages, potential growth avenues, and potential risks.

Defining Business Objectives (SMART Goals):

• Specific, Measurable, Achievable, Relevant, and Time-bound goals.
• Objectives align with the company's mission and vision.
• May vary based on industry, target audience, and resources.
• Examples: increasing revenue, expanding into new markets, improving customer satisfaction, and reducing costs.

Market Research:

• Collects data about:
  • Target audience: their needs, wants, and preferences.
  • Competitors: their strengths, weaknesses, and market positions.
  • Industry trends: current and future industry changes.

Target Audience:

• Understanding the target audience is crucial for success.
• Helps:
  • Tailor products and services.
  • Develop effective marketing campaigns.
  • Enhance customer engagement.
  • Identify new market opportunities.

Developing A Market Plan:

• A strategy outlining:
  • Target market analysis: understanding the needs and preferences of the target audience.
  • Product description: detailing the features and benefits of the product or service.
  • Competitor assessment: evaluating the competition within the target market.
  • Marketing plans: outlining strategies to achieve marketing objectives.

Marketing Mix (7 Ps):

• A combination of factors that companies control to influence consumer purchasing decisions.
• The seven Ps encompass the elements of:
  • Product: The core service or good being offered.
  • Price: Setting a price that aligns with customer willingness to pay, costs, and other factors.
  • Promotion: Strategies used to communicate the product's value and benefits to customers.
  • Place: How and where the products are made available to customers.
  • People: The quality and effectiveness of customer service provided.
  • Process: The steps involved in delivering the product or service to the customer.
  • Physical Evidence: Tangible cues that reflect the brand and purchase experience.

Types of Social Entrepreneurs:

• Non-profit Social Entrepreneur:

  • A tax-exempt individual or organization that invests funds in charitable or developmental causes.
  • Focuses on preserving and using resources to sustain their advocacy.
  • Example: Kariton Klasrum.

• Transformational Social Entrepreneur:

  • Establishes businesses to address national issues, often those not addressed by government entities.
  • Focuses on creating broader societal change and impacting an entire nation.
  • Example: GK Enchanted Farm.

• Community Social Entrepreneur:

  • Focuses on addressing the needs of specific geographical communities.
  • Creates jobs, offers financial assistance, or provides essential goods and services to residents.
  • Example: Kariton Klasrum, Bayani Brew, and Theo & Philo.

• Global Social Entrepreneur:

  • Addresses global issues and works to solve them.
  • Often part of companies committed to social missions as part of their core operations.
  • Strives to create systemic change on a worldwide scale.
  • Examples: Kariton Klasrum, Bambike.

Creating a Financial Plan:

• A roadmap outlining:

  • Financial Goals: Objectives that the business aims to achieve.
  • Financial Objectives: Specific milestones related to financial targets.
  • Financial Strategies: Actions taken to achieve the financial objectives.

• Components Include:

  • Financial Situation Analysis: Describes the current financial health of the business.
  • Revenue and Expense Projections: Forecasts income and expenses for the future.
  • Risk and Opportunity Assessment: Identifies potential threats and growth opportunities.

• Benefits of a Financial Plan:

  • Effective Resource Allocation: Helps ensure resources are used strategically.
  • Financial Performance Measurement: Provides a framework for tracking success.
  • Alignment with Company Objectives: Ensures financial activities support overall business goals.

Income Statement (Profit And Loss Statement)

• Shows a company’s financial performance over a specific period, typically a month or year.
• Reports the company's revenue and expenses.
• The difference between revenue and expenses is called profit (net income) or loss (net loss).