Learning Activity Sheets

in
Business Ethics and Social Responsibility
Quarter 4

Lesson. Social Entrepreneurship

A business is a social institution developed according to a certain perception which saw it as fundamentally
concerned with making a profit. It gives employment to people, provides good and services that are critical
for the economic development of nations. But when business and a desire for social justice combine, the
results can truly be life-changing.
Social enterprises are founded to solve a range of social needs and often vary in their model.
Entrepreneurs are first and foremost advocates or champions for a social cause. These individuals
launched social entrepreneurship by which a social enterprise centers itself around a social mission and
uses commerce as tool to maximize sustainability and impact.
What is social enterprise?
A social enterprise is a business model to solve social issues and problems while providing goods and
services. It is a kind of entrepreneurship that attempts to use business techniques in tackling social,
cultural, or environmental problems. One common thing about it is that profit is not their priority.
Differentiating a Social Enterprise from Commercial Enterprise and a Non-profit/Charity

Business Social Enterprise Non-profit/Charity

Capitalization From own savings; bank Initial Capital may come From donations and
How will the venture be loans, other financial from own savings by sponsors
funded? institutions may also be sourced
from grants and
donations
Measures Financial stability and Profitability but also a Social or environmental
How do you measure profitability social and impact
the success of the environmental impact
venture?
Purpose To generate profit To be financially Benefit society
What is the main goal of sustainable but also
the venture? have a positive impact
on the chosen cause

Principles of Social Enterprise

There are seven principles of social enterprise which serve as a guide to social entrepreneurs in achieving
their and broaden their impact on their beneficiaries.
1. Cause-driven: A social enterprise is a business without a profit maximization purpose where the
objective and purpose is to overcome or alleviate a global or local issue such as poverty, education, health,
technology access, or the environment.
2. Financial and economic sustainability: Like any other business, financial numbers and cash flow must
be in line with what is expected and sustainable in the long-term.
3. Investor returns: Investors will receive a return on their investment amount only — no dividend.
Investors must only receive back what they put in.

Business Ethics and Social Responsibility

ABM – Grade 12
4. Profits generated remain: Once the investments are paid back, profit will stay with the company for
expansion and improvement.
5. Gender-sensitive and environmentally conscious: Tackling gender discrimination and inclusion is
vital as well as integrating environmental impact actions.
6. Employees are treated fairly: More emphasis on well-being at the workplace is given, fostering long-
term relationships with employees and striving for their happiness.
7. Joy in their work: Businesses that work for a purpose of helping a cause do it with joy.

Types Of Social Entrepreneurship

 Based on Service
1. Community Enterprises are businesses that serve a particular geographic community or community of
interest and have representatives from the community that sits on the board of directors.
2. Social Firms are enterprises that seek to place people who might otherwise find it difficult to enter the
mainstream job market, such as those with learning difficulties or mental health problems.
3. Cooperatives are organizations owned, controlled, and run by their members.
4. Credit Unions are community-based financial institutions that provide savings and loan facilities for their
members.
5. Community Development Finance Institutions provide loans and other types of investment to support
social enterprises and other small businesses.
6. Development Trusts aim to develop a community through the ownership and management of the
property.
7. Public Sector Spin-outs are independent social enterprises that deliver services that were previously
provided by public sector organizations.
8. Trading Arms of Charities are set up to undertake trading activity to raise money for its charity parent
company.
9. Fair Trade Organizations are companies committed to ensuring that producers are paid a fair price for
what they produce.
 Based on Profit Models
1. Subsidized Social Enterprises is the more conventional type, wherein the business relies on funding,
grants, donations, and other forms of traditional funding to pay for operational costs.
2. Self-sustaining Social Enterprises are self-sustaining social enterprises, on the other hand, do not
receive grants and can cover operational costs through the revenue generated by their sales.
3. Profitable Social Enterprises operate with an income and are considered profitable.

Business Ethics and Social Responsibility

ABM – Grade 12
A social business model is a structure, design, or framework that a business follows to bring value to its
customers and clients. Social entrepreneurs can use a combination of the nine business models to reach
more people who can benefit from their social services.

Business Model Name How it works Examples

Entrepreneur Support Model sells business support services Microfinance organizations,
directly to the entrepreneurs in its consulting, or tech support
target population
Market Intermediary Model helps their clients by marketing Supply cooperatives like a fair
or selling their clients’ products ortrade, agriculture, and also
services for them handicraft organizations
Employment Model in which a social enterprise Disabilities or youth
provides its clients with job organizations providing work
opportunities and job training opportunities in landscape, cafes,
printing, or other business
Fee-for-service Model charges the customer directly for Membership organizations,
the socially beneficial services it museums, and also clinics
provides
Low-Income Client model generally offers social services Healthcare (prescriptions,
directly (as in the fee-for-service eyeglasses), utility programs
model) while focusing on low-
income clients
Cooperative Model a fee-based membership Bulk purchasing, collective
organization that provides bargaining (union), agricultural
member services to a group that coops, credit unions
shares a common need or goal
Market Linkage Model that focus on building Import-export, market research,
relationships and otherwise and also broker services
connecting their clients with
markets for their clients’ products
and services
Service Subsidization Model that fund social programs by Consulting, counseling,
selling products or services in the employment training, leasing,
marketplace printing services, and so forth
Organization Support Model sell products or services and the implement any type of business
revenue generated is used to that leverages its assets
fund an organization that runs
the program that the social
enterprise supports.

Business Ethics and Social Responsibility

ABM – Grade 12
Activity 8. “Build Your Business”
Name: __________________________________
Grade and Section: ________________________
Instruction: Choose a particular business, social enterprise, and non-profit/charity and fill out the table
below.

Business Social Enterprise Non-profit/ Charity

Where did it get

capitalization?

How does it measure

success?

What is its primary

purpose?

Business Ethics and Social Responsibility

ABM – Grade 12
Activity 9. “Business Environment”
Name: __________________________________
Grade and Section: ________________________
Instruction: Look around you. Cite an example of a social enterprise for each type, based on the service
provided.

Type of Social Enterprise Name of Company

1.Community Enterprises

2.Social Firms

3.Cooperatives

4.Credit Unions

5. Community Development Finance Institutions

Business Ethics and Social Responsibility

ABM – Grade 12