Sample Business Paper on Scaling of Social Enterprise

Sample Business Paper on Scaling of Social Enterprise

Question one

Social enterprises scaling takes place slowly due to factors like financial and human resources. Social enterprise is sometimes defined as start-up phenomena that do not overcome the start up stage. Factors relating to quality control, financing and human resource prevent a business from growing. Many social enterprises always depend on beneficiaries who at most times are unable to pay for the services. Governments do not fund social companies thus imposing huge liabilities on them. It is also hard to obtain external funds since many prefer financing new innovations.

Social enterprises founders are reluctant to give up control of the enterprise and in most times do not have all managerial skills. This refusal poses a challenge in growing the organization because the enterprise manager lacks creativity on how to scale the enterprise. The social enterprise always relies on volunteers who most of the times are employed, staff. The staffs are not ready for the growth of the organization since it means more work compared to the incentives they get. Most of the social enterprises offer services which mostly are not patented. The foundation’s innovations are always misused since no law to protect them. The lack of patent hinders the businesses from scaling since their innovations are misuses

Question two

Social entrepreneurs should evaluate ways to spread their impact to other places. Among the ideas social entrepreneurs can use is to actively disseminate information and offering technical assistance to new innovators who want to bring new innovation to their community. KaBOOM! is an example of an enterprise which has used dissemination strategy to spread its impact to new locations. KaBOOM! is a non-profit enterprise which advocates for the development of safe and accessible playgrounds for kids. In 1996, KaBOOM! in conjunction with Home Depot and local community built a playground in Washington D.C.  KaBOOM! also started offering free or low-cost resources to take its impact further. Dissemination has enabled KaBOOM! spread its implications by rehabilitating thousands of playgrounds globally.

Social enterprise entrepreneurs can also use affiliation or be associating with other enterprises to spread its impact. It involves merging of the small organizations to form a big group which can reach many parts of the globe. For instance, in 1998 Social Venture Partners (SVP) affiliated with other twenty-three organizations to form an international federation. Many independent teams were formed, and they used SVP name which led to the birth of Social Venture Partners International in 2001. Branching involves opening similar enterprises in different locations. The branches are not highly centralized, and they give room for individual offices to operate independently. Nature Conservancy which deals with conservation of environment has branches in all states in North America and other twenty-two countries in the world.  The opening of offices has helped the organization to protect over 116 million acres of land around the globe.

Implementation of the five Rs strategy, help social entrepreneurs in growing their enterprises. Five R stands for Readiness, Receptivity, Resources, Risks, and Returns.

The entrepreneur must have enough knowledge of the innovation to come up with best ways of transferring it to other communities. Reception of the innovation by the target community is an important factor to consider when setting growth strategies. For example, coming up with a project that goes against communities ideologies may not be received well hence the enterprise will not grow.  A social entrepreneur should have a clear plan on where to get resources to fund his enterprise. The success of any organization mostly depends on support available to stand for its day to day operations. The consequences to carry in case the innovation fails should also be considered. The social entrepreneur should know about ways to build the enterprise in case it fails. Also, an entrepreneur should examine the returns of the business to establish whether the organization can be able to support itself in future.