Business models for social entrepreneurs

The Graduate School of Business at UCT runs a post-graduate diploma in Management Practice. This diploma contains a module on Social Innovation and Entrepreneurship. I gave a series of lectures in February 2015 to students on the different business models that social entrepreneurs have been using in South Africa.

The presentation draws inspiration from two sources. The first is the Harvard Business Review article entitled “Reinventing your Business Model”. The second source is Kim Alter’s classic 2007 paper entitled “Social Enterprise Typology”.

Income generation models for NPOs

This presentation discusses the concept of income generation – something that many non-profit organizations are struggling to do. It talks about resistance to making a profit and some basic rules for making money. It then presents 5 common income generation models that have been used by non-profit organizations in Cape Town. Finally, it discusses how non-profit organization can earn money from businesses and the government.

It was first presented in March 2013 to members of Women in Philanthropy.

Need for new funding model for non-profit organizations

The South African Institute of Fundraisers (SAIF) invited me to share my view on why its members were increasingly struggling. This presentation from July 2009 identifies five main reasons why the traditional fundraising model is “broken”. It then suggests six ways in which fundraisers can apply social enterprise thinking in earn income and manage their organizations’ financial risk.

The business model of nonprofit organizations is flawed

This letter was published in the Cape Times in May 2008 in response to a letter by Sheilagh Gastrow. It acknowledges that it is difficult for non-profit organizations to find the funding they need to fulfil their purpose, and to sustain their operations while complying with their donors’ requirements.

However, emphasizes that the business model embraced by traditional non-profit organizations has some fundamental flaws. It discusses these flaws and what non-profit organizations can do to overcome them.

Cultivating strategic clarity.

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