Social Entrepreneurship
Domain focus
This section covers Social Entrepreneurship. The exam tests the concept, the difference from charity and conventional business, social enterprise models, and impact measurement.
Core rules and concepts
- Social entrepreneurship uses entrepreneurial methods to solve a social problem. The social mission is primary, while earned income supports sustainability.
- Charity depends mainly on donations; a conventional business mainly maximises profit; a social enterprise blends mission and market.
- Models include cross-subsidy, cooperative, fee-for-service and hybrid grant-plus-revenue models.
- Impact is measured by reach, outcome change, cost per beneficiary and financial sustainability.
Worked example
A low-cost sanitary-pad unit employs rural women, sells through self-help groups and schools, and uses part of the surplus for training. Reasoning: the mission is health and livelihoods; sales revenue reduces donor dependence; impact is measured by women employed, pads sold and school attendance reports. A pure donation model would not test market demand or sustainability.
Traps that cost marks
Do not equate a social enterprise with an NGO or charity. Do not ignore financial sustainability. Do not claim impact without evidence. Do not lose the social mission while chasing profit.