Framework

Schools of social enterprise

The question it answers

A non-profit founder weighing up selling goods to fund the mission has to pick a model: is a social enterprise defined by earned income, by social innovation, or by the Grameen rule of no dividends?

Origin
Defourny and Nyssens, 2010; Yunus, Moingeon and Lehmann-Ortega, 2010
Diagram type
Comparison table
Level of analysis
Industry
Rocket lifting off from a glass light bulb, icon for entrepreneurship and innovation

Diagram

Schools of social enterprise

CriterionEarned-income schoolSocial innovation schoolGrameen-style social business
FocusCommercial activity in support of a non-profit's missionSocial entrepreneurs as change makers: outcomes matter more than incomeSocial goal first; a non-loss, non-dividend company
Legal formNon-profit; the broader strand includes for-profit companiesOften non-profit, but boundaries with the private and public sectors are blurredCompany
Place in the classificationFirst US school of thoughtSecond US school of thoughtTied to the mission-driven business strand of the first school, with stricter conditions

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Defourny, J. and Nyssens, M. (2010) ‘Conceptions of social enterprise and social entrepreneurship in Europe and the United States: convergences and divergences’, Journal of Social Entrepreneurship, 1(1), pp. 32–53.doi:10.1080/19420670903442053Cited in 1 article
  2. Yunus, M., Moingeon, B. and Lehmann-Ortega, L. (2010) ‘Building social business models: lessons from the Grameen experience’, Long Range Planning, 43(2–3), pp. 308–325.doi:10.1016/j.lrp.2009.12.005Cited in 1 article