1. Entrepreneurial Nonprofit These are tax-exempt entities supported, at least in part, by earned income (although I’ve seen it argued once or twice that an innovative nonprofit idea, even without earned income, makes the cut). To reach entrepreneurial

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6 types of social enterprises

Awareness Brand

primary activities don’t necessarily address the root cause of the social problem they’re bringing awareness to.

those that sell products designed to engage community and bring awareness to a social issue

Give One, Get One/Donate Portion of Proceeds Model

Revenue-generating activities are generally wholly separate from change-making activities and, in many cases, the social component is an add-on to the company’s core business.

These companies direct some portion of their business toward charitable work and are almost always layered into the preceding and subsequent categories

Socially Responsible Business

Primary funding options here include traditional angel investments and venture capital, as well as program-related investments in some circumstances.

created primarily to address a social issue, it’s more common that this categorical distinction is based on the adoption of practices benefiting community, employees or environment (generally more aligned with the idea of doing business better).

Everything else

Democratic ownership by employees, including accountability and decision making within the company. No possibility of sale, keeping the company permanently stewarded by the workforce for the benefit of society. Unleashing 100% of profits for social good.

The social enterprise employment model, which uses the business to provide meaningful work and empowerment to a disadvantaged population

Non-Nonprofit

They exist primarily to address a social issue (“mission-first” or “mission-centric”), with revenue-generating activities intertwined with change-making activities.

These organizations start with social mission, much like a nonprofit, and then figure out a way to make it work outside the restrictions of a tax-exempt model — in other words, they’re a for-profit business.

Entrepreneurial Nonprofit

Definition and characteristics

Their main funding sources typically are grants from foundations and donations from the general public

These are tax-exempt entities supported, at least in part, by earned income