Social Entrepreneurship Business Plan

Social Entrepreneurship Articles

In the last years, more and more entrepreneurs are not only looking for an investment opportunity that generates profit, but they also want to be part of a business that makes an impact on a social issue. From global warming to poverty, social entrepreneurship is about choosing a social problem and look for ways to solve it. These industries can either be for-profit or non-profit businesses. In any case, setting up and running a social enterprise is not an easy task but one that brings a great sense of accomplishment. This business plan includes a guide that contains valuable information on this topic and lays out the factors to consider when entering the world of social entrepreneurship.

social entrepreneurship plan

Business Model

A social enterprise is one capable of finding ways to help a cause sustainably. Either for-profit or not, it works focused on the aid of a social issue and its success depends directly on the increasing interest, commitment and involvement of volunteers and customers. Entering the social entrepreneurship world can be challenging but rewarding. The business model section presents a guide on how to run the business with equal financial and social goals.

Business Summary

market positioning

Market Positioning

In this section of the plan there is a complete description of the social entrepreneurship industry and how to position the business within its target market. You will find a market research report and analysis of other projects, example of similar businesses and the social issues they focus on. Moreover, there is a list of strategies for the company to become well-known within the population involved.

team management

Operations Plan

The social entrepreneurship operations plan focuses on offering consumers a valuable product or service that also provides them with the opportunity of being part of the solution to a social problem. The company will have an organized operational structure that might vary depending of the type of solution they offer but will commonly include a mix of managers, staff members and volunteers. This sections also outlines the major core processes that will help the company deliver its products or services.

Marketing Plan

The social entrepreneurship marketing plan includes the strategies to promote and advertise the product or service offered. The most effective marketing strategy is determined by the type on enterprise and its target market. This section includes a marketing plan for the social entrepreneurship as well as notes on how other social businesses promote themselves and the most cost effective means to enter the market.

trade shows

Market Segmentation

For social entrepreneurship there are generally three customers: 1) the donor or sponsors 2) the traditional customer who buys a product or service 3) the beneficiary of the organization’s mission. All three customer types require equal focus and attention as they are crucial to the company’s success. In this portion of the plan, you will find information on how to target each of these segments properly, along with identifying the segment you will serve through your social solution.

business development

Promotional Strategies

Enterprises with social mission attract customers, but they need to present a clear company focus, a problem solving plan, and a valuable product or service at a fair price. Marketing is the heart of any successful business and social entrepreneurship in no exception. Hosting and sponsoring fund raising events or online fund raising efforts, as well as other promotional strategies, are included in this promotional plan to help the project kick-off or grow successfully.

Financial Projections

The following chapter presents the financial projections for the social entrepreneurship business plan for the following three to five years. This financial plan is basically a comprehensive estimate of revenues, expenses, and capital requirements for the business.

revenue projections

Revenue Assumptions

Social entrepreneurship revenues come mostly from traditional customers who buy a product or service that results directly or indirectly in a social good. Other revenues might come from donations to the cause. In this section of the plan, there is a description of the main sources of revenues for the social entrepreneurship plan.

budget forecasts

Projecting Expenses

Even though social entrepreneurship entities have a social mission, they mostly operate with the help of volunteers, donors and sponsors. On the other hand, non-profit project select that status in order to make donations tax deductible because the mission of the enterprise can’t be sustained without this type of financial help. This section of the plan includes the costs of running a social enterprise in both scenarios, as well as a list of funding alternatives.

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