Social Ventures – Simple Business Plan
In today’s interconnected world, social ventures play a crucial role in solving societal problems and promoting positive change. Through placing a high value on social effect in addition to profit, these endeavors support our communities’ sustainability and general well-being, exemplifying the giving back mentality.
Society forms the basis of material interaction between the world and humans. It aims to provide all the essential ingredients required for the overall development of the personality of an individual, from education to the young developing minds to the creation of job opportunities and the availability of different services. With these rights of individuals comes the obligation towards society. In order to maintain the balance, individuals must supplement every act of taking with an act of giving back.
In the business sense, every entrepreneur starts a commercial venture with the sole purpose of catering to the desires of society, with a clear intent to profit from the opportunity. Over time, they begin to accumulate wealth and money, benefiting only a select few. Social ventures fill the void caused by this disturbance in the balance, creating stability and addressing societal needs.
By definition, the term social venture means an organization that strives for providing a systemic solution to achieve a sustainable growth path. Such organizations aim to improve the standard of living of the neglected class and provide the basic necessity essential for sustenance like education, medicines, preserving the environment, etc. Now that you know what is social venture and why we need it let us together understand the different types of social ventures.
Types of Social Ventures
Before moving ahead with the classification of different models of the social ventures let us first debunk the myth that all social ventures run on the donation money of philanthropist business tycoons, corporate houses, celebrities or sports stars.Some ventures receive sponsorship from various individuals, but this represents only one of the three models of social ventures.
The first model is of course the not-for-profit ventures which raise the money through various sources and receive donations in order to carry out their projects.
The second type of social venture can be termed as hybrid nonprofit model, which uses a mix of donations and has some of its own income generation activities to recover some portions of its costs.
The third and the last model is known as a social business, under this model a social venture is capable enough to generate its own income with profits, and then instead of using the profit for personal benefits reinvests the entire sum to its social project.
Structure of Social Ventures
Since the scope of work of a social venture is vast and expansive it can have a different structure as per its need. It can be for example have sole proprietorship and can also have the complexity of an organization with different people at the helm of affairs. On one hand, a community organization works towards the betterment of a community, while on the other hand, a youth group dedicates itself to educating people about social issues.
By the end of this article we have gathered enough information regarding the purpose, model and the structure of social venture. Its acts like a counter balance to commercial venture and strengthen the society to move positively in the direction of sustainable growth path.
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