Forms of ownership: For-

profit social enterprises

Making money = good
Making money + helping people = even better
Quote of the day:
“The question really is, are you improving the world? You can do that in
government, you can do that in a nonprofit, and you can do it in
commercial enterprise.”
—Jeff Bezos, Richest man in the world
Learning Consider the main features of the following types of for-
Goal profit social enterprises
- cooperatives
- microfinance providers
- public/private partnerships

Success - Highlight: (dis)advantages for the different types of

Criteria enterprises
- Respond: What are the features of the different for-
profit social enterprises?
- Consider/discuss: Why do we have these different
types of enterprises anyway? Who benefits?
Social “Revenue generating businesses with
social objectives at the core of their
Enterprises operations.”

What are social objectives?

 Social Enterprise List
(
http://inventshift.com/list-of-
Task: What are social-enterprises
examples of social )
enterprises?
1. Pick a social enterprise
2. What social objective(s)
does this business aim
for?
 Social enterprises

Not-for-profit social For-profit social enterprises

For profit: enterprises
Focus is on providing
shareholders with value
● Achieve social ● Achieve social
Not-for-profit: objectives objectives
Focus is on achieving (solve social issues)
social objectives (solve social issues)
● Profit is not the main ● Profit + solving social
focus objectives is a focus
Is it possible:
For-profit social enterprises?

Three main types

1.Co-operatives
2.Microfinance
3.Public- Private Partnerships
(PPP)
Quick look: Jamie Oliver

Fifteen Restaurant
- Trained disadvantaged youth to become chefs
(expelled students, low income homes)
- Chain of restaurants (UK, Amsterdam, Netherlands)
- Profit used to give young people more opportunities
to have a better future
Jamie Oliver: Fifteen Restaurant
Cooperatives

- Owned and run by members

- Goal: create value by operating in a socially responsible way
- Not just for the business, but for the community as well!
- Equal votes
- Profits are shared
Types of Cooperatives

Consumer Co-ops

Members (customers) buy

goods/services for personal use
Types of Cooperatives

Producer Co-ops
- Producers support each other
- Farmers - share equipment
- Artists - share living spaces
- Profits are shared by everyone
in the co-op
Types of Cooperatives

Worker Co-ops
- Organized to help provide
work (usually in production
and manufacturing)
- All workers = Co-op members
with equal voting rights for
business decisions
Co-ops - (dis)advantages
- Incentive to work (why?)
- Decision making power
- Social Benefits (what?)
- Public Support (why?)
- Limited sources of finance
- Slower decision making process
- Limited opportunities to be
promoted to a higher position
(why?)
Microfinancing

Lending services aimed at Why’s it different from a bank?

loaning money (financing) Microfinancing is usually aimed at

to entrepreneurs individuals in developing nations who
might have trouble accessing loans
from larger organizations

● Female entrepreneurs
● low income
● small businesses
 Look it up:
- Visit:
Quick task: brac.net/program/microfinance
- What are the goals of BRAC?
Microfinancing - What are the benefits of
microfinancing?
Where is it used? Who benefits?
“More than 500 million individuals have
directly benefited from access to
microfinance.” — World Bank
Ideas: Muhammad Yunus, Inventor of microfinancing
Public Private Partnerships (PPP)

Public Private Partnerships

Government and Private
sector work together to
provide certain goods or
services.
Interesting fact: In Japan, PPPs are seen as another
sector (after public and private). It’s called the
Daisan Sector.
Why use a PPP model?
Healthcare around the world
What does each bring to the table?

Private Public
Innovation Funding (lots of it)
Finance Public support
Efficiency
For tonight...

Before you go:

- What’s something new you learned today? (completely new, or
extended your knowledge)
- What’s something that you want to know more about?

Read For your notebook:

1. Case study (next slide) for class
tomorrow
2. Complete handout 1.2: Focus on
relevant questions/definitions from this
class
21
Case Study: Hong Kong Disneyland
pg 24

Answer the following questions: 1.2.5.

a.What are 2 benefits of the HKDL PPP to
Hong Kong?
b.Should governments use tax revenues to
fund PPPs?