Revenue Models for Social Entrepreneurialism

Summary

There are inherent challenges to creating innovative organizational and business models that both create a large positive social impact and are financially sustainable.

Whether you call what you want to do a "Social Profit", "Social Venture", "Social Entrepreneurialism", "hybrid non-profit", "non-profit", or some other flavor how do social entreprenuers:

• Fund their startup?

• Create viable revenue models?

• Find or create private sector support?

One key issue in creating sustainable models is paying staff for value created:

Private sector firms are typically driven by win-lose strategies in contrast to non-profit/social profit organizations that are driven by win-win strategies.  In the non-profit/social profit sector, management and staff are grossly underpaid for the value they create for their communities and constituents.  Is it appropriate that management and staff in private sector firms should be pay more than their non-profit/social profit counterparts?

Constraints

• How do we create incentives in the face of disincentives to fueling more social entrepreneurialism? 

• Do people who want to make a difference in the world still need to be martyrs who barely earn enough to survive? 

• How do we design revenue models and structure compensation so that staff members are paid for the value that they create for their communities and the world at large?