Social Business Models

Business Key success

How it works Examples
model factors
Microfinance
Sells business
Entrepreneur organizations, Appropriate training
support to its target
support consulting, or tech for the entrepreneur
population.
support
Supply
cooperatives like Low start-up costs,
Provide services to
Market fair trade, allows clients to stay
clients to help them
intermediary agriculture, and and work in their
access markets.
handicraft community
organizations
Disabilities or
Provide employment youth
opportunity and job organizations
Job training
training to clients and providing work
Employment appropriateness and
then sells its products opportunities in
commercial viability
or services on the landscape, cafes,
open market. printing, or other
business
Membership Establishing the
Selling social services
Free-for- organizations, appropriate fee
directly to clients or a
service museums, and structure vis a vis
third-party payer.
clinics the benefits
Similar to fee-for-
Creative distribution
service in terms of
Healthcare systems, lower
offering services to
Low-income (prescriptions, production and
clients but focuses on
client eyeglasses), utility marketing costs,
providing access to
programs high operating
those who couldn’t
efficiencies
otherwise afford it.
Bulk purchasing, Members have
Provides members collective common
Cooperative with benefits through bargaining (union), interests/needs, are
collective services. agricultural coops, key stakeholders,
credit unions and investors
Facilitates trade Import-export, Does not sell clients’
relationships between market research, products but
Market linkage
clients and the and broker connects clients to
external market. services markets
Service Sells products or Consulting, Can leverage
subsidization services to an counseling, tangible assets
 external market to
help fund other social
programs. This model (buildings, land,
employment
is integrated with the employees) or
training, leasing,
non-profit intangible (expertise,
printing services,
organization; the methodologies, or
and so forth
business activities relationships)
and social programs
overlap.
Similar to service Similar to service
subsidization, but subsidization–
Organizational applying the external implement any Similar to service
support model; business type of business subsidization.
activities are separate that leverages its
from social programs assets