Succeeding at Social Enterprise: Hard-Won Lessons for Nonprofits and Social Entrepreneurs

299 Pages·2010·2.04 MB·English

by  Social Enterprise Alliance

From the Social Enterprise Alliance, the organization dedicated to building a robust social
enterprise fi eld, comes Succeeding at Social Enterprise. This practical guide is fi lled with the
best practices, tools, guidance, models and successful cases for leaders (and future leaders)
of social ventures and enterprises. A groundbreaking work, it brings together the knowledge
and experience of social enterprise pioneers in the fi eld and some of today’s most successful
social entrepreneurs to show what it takes to implement and run an eff ective social venture
or organization. Succeeding at Social Enterprise focuses on real life examples, lessons learned
and the core competencies that are needed to run a social venture in a nonprofi t, highlighting
such skills as managing and leading, business planning, marketing and sales, and accounting. S Succeeding at
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Praise for Succeeding at Social Enterprise SOCIAL
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“This is a must read for anyone starting or growing a social enterprise. The lessons learned
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off er valuable, practical and real insights from pioneers in the fi eld. The frameworks and tools
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presented can be implemented immediately to help drive success and expand your social
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impact.” —KRISS DEIGLMEIER, executive director, Center for Social Innovation, Stanford n
Graduate School of Business g

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“By successfully weaving together the best thinking and advice from a diverse set of our fi eld’s
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leading experts and practitioners, Succeeding at Social Enterprise will be the new ‘must have’

handbook for Social Enterprise.”—JED EMERSON, www.BlendedValue.org
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“This is a timely book needed for a movement that’s taking off . The leading thinkers and top
practitioners in this book make today’s pressing issues clear to both the novice and the expe- C
rienced social entrepreneur.”—KEVIN JONES, founding principal, Good Capital I
A Hard-Won Lessons for Nonprofi ts and Social Entrepreneurs
“Written by the nation’s leading experts on starting, building and leading a successful social
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venture, this book is a profoundly important contribution to the growing body of literature on

social entrepreneurship. No other book brings to bear this kind of business experience, practi- E
cal advice and wisdom on the challenges of creating and sustaining a social enterprise.” N
—DAVID ROLL, founder, Lex Mundi Pro Bono Foundation T
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The Social Enterprise Alliance is advocate for the fi eld, hub of information and education, and
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builder of a vibrant and growing community of social enterprises.
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Join Us at www.josseybass.com
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NONPROFIT LEADERSHIP
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Praise for Succeeding at Social Enterprise
‘‘Thisisamustreadforanyonestartingorgrowingasocialenterprise.The
lessons learned offer valuable, practical and real insights from pioneers
in the field. The frameworks and tools presented can be implemented
immediatelytohelpdrivesuccessandexpandyoursocialimpact.’’
—Kriss Deiglmeier, Executive Director, Center for Social Innovation,
StanfordGraduateSchoolofBusiness
‘‘By successfully weaving together the best thinking and advice from a
diverse set of our field’s leading experts and practitioners, Succeeding
at Social Enterprise will be the new ‘must have’ handbook for Social
Enterprise.’’
—JedEmerson,www.BlendedValue.org
‘‘Thisisatimelybookneededforamovementthat’stakingoff.Theleading
thinkers and top practitioners in this book make today’s pressing issues
cleartoboththenoviceandtheexperiencedsocialentrepreneur.’’
—KevinJones,FoundingPrincipal,GoodCapital
‘‘Writtenbythenation’sleadingexpertsonstarting,buildingandleadinga
successfulsocialventure,thisbookisaprofoundlyimportantcontribution
to the growing body of literature on social entrepreneurship. No other
book brings to bear this kind of business experience, practical advice and
wisdomonthechallengesofcreatingandsustainingasocialenterprise.’’
—DavidRoll,Founder,LexMundiProBonoFoundation

Succeeding at Social Enterprise
Join Us at
Register at www.josseybass.com/email
for more information on our publications,
authors, and to receive special offers.
Succeeding at Social
Enterprise
HARD-WON LESSONS FOR NONPROFITS AND
SOCIAL ENTREPRENEURS
Social Enterprise Alliance
Copyright© 2010bySocialEnterpriseAlliance.Allrightsreserved.
PublishedbyJossey-Bass
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LibraryofCongressCataloging-in-PublicationData
Succeedingatsocialenterprise:hard-wonlessonsfornonprofitsandsocialentrepreneurs/Social
EnterpriseAlliance.—1sted.
p.cm.
Includesindex.
ISBN978-0-470-40532-1(pbk.)
1.Nonprofitorganizations.2.Nonprofitorganizations–Management.I.SocialEnterpriseAlliance.
HD62.6.S832010
658(cid:2).048—dc22
2009054088
PrintedintheUnitedStatesofAmerica
firstedition
HBPrinting 10987654321
C O N T E N T S
Foreword xiii
RobertEgger
Introduction xxi
Preface xxxi
KrisPrendergast
PART ONE Start-Up andStructure 1
ONE AligningMission and a Social Venture 3
KeithB.Artin
CaseStudy:From$18,000to$10MillioninFifteenYears 4
CriteriaforAligningMissionwithBusinessIdeas 12
Conclusion 14
TWO DoingGood VersusDoingWell 17
KevinLynchandJuliusWalls,Jr.
GuidingPrinciples 19
PracticalitiesBeyondPrinciples 22
MissionLeverage 23
vii
THREE BusinessPlanningforEnduringSocialImpact 27
AndrewWolk
ITNAmerica—UsingBusinessPlanningtoHelpReplicate
aFlagshipProgram 29
TheProcessofBusinessPlanning 30
Conclusion:BusinessPlanningAcceleratesSocialImpact 44
FOUR AligningStaff andBoardArounda Venture 47
WendyK.BaumannandJulannJatczak
RunningwithanIdea 48
LessonsLearned 50
HaveFun 63
FIVE The Life Cycle of SocialEnterpriseFinancing 67
JeannineJacokesandJenniferPryce
Conclusion 83
PART TWO Methods 85
SIX Productor Service Development 87
MarkJ.Loranger
What’sDifferentAboutPlanningaSocialEnterprise? 88
CaseStudy:GrowingaGreenBusiness 89
LessonLearned:FollowaStructuredProcess 91
LetMissionDriveEnterprise 97
SEVEN Image,Advertising,and Communications 99
MartinSchwartz
AnImageMustBeGroundedinReality 100
viii
Contents