Giving Compass' Take:

• Annie Brown explains the pros and cons of social impact business models including non-profit, for-profit social enterprises, and cooperatives. 

• Which of these models best aligns with your mission and values? 

• Learn about six types of social enterprises. 

Traditional business models have succeeded in driving technical innovation and creating exponential change in our lives. However, capitalism as we know it today has also caused unprecedented inequality and environmental damage. Below are different social impact models that can potentially work in the context of what type of business you want to start.

  1. Non-profit-Governments and non-profits have been working to address some of these issues, however government aid is problematic and often tainted by anterior motives and as government funding disappears and donors become less reliable, non-profits are struggling to stay afloat.
  2. For-Profit Social Enterprise-For-profit social enterprises are defined by the generation of both social value (measurable impact) and economic value (revenue). Strictly speaking, there are two types of social enterprises: integrated and embedded. However, these models can be combined and adjusted according to the needs of your community and most effective revenue streams.
  3. Cooperatives-An autonomous association of persons united voluntarily to meet their common economic and social needs through a jointly owned and democratically controlled enterprise. This model can be a huge advantage for creating the most sustainable and ethical business possible under capitalism.

Read the full article about social impact business models by Annie Brown at Causeartist.