A lot of you have probably never heard the term “social business.” Those of you that have might be a little hazy about what a social business really is. Hopefully I can help a little.
A social business is a business whose primary objective is to meet a social need (e.g. hunger, unemployment, education, etc.) using sustainable, capitalistic methods. Profit is used primarily to expand the businesses reach and services, not to increase dividends. It’s a sort of hybrid between your traditional non-profit and for-profit ventures.
If you’re anything like me, though, a simple definition isn’t always enough to fully understand the concept. So let’s try a simple example to help characterize what a social business might look like:
Let’s say you want to help poor people achieve financial independence. Let’s also say you’re a Master Chef (or you know one – which is probably more likely). Now open a for-profit restaurant that is staffed, in part, by individuals training for jobs in the high-quality food service industry that come from low-income families. Add to that a job placement program at the end of a six-month training and you have yourself a social business.
Now I’m just spit-balling here, but you can see how easy – and fun – imagining a social business can be. Factor in all the creative nuances that the for-profit arena can offer and the possibilities of how we tackle our social needs become limitless.
My challenge for you this week is to think of a social issue that has some meaning to you. Then, try to think of an innovative, for-profit business around your chosen social issue. Post them here, e-mail them to me, or keep them to yourself. The point is to engage your mind!
Until next time…

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June 26, 2010 at 4:07 am
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