“To reach scale at speed, you need investment, and the vast majority of investors need some cash return on their investment. Even social investors need the cash to invest in the next generation of social enterprises. Which is why community interest companies find it so much more difficult to raise the sums they need. The first workshop I attended as an Ashoka fellow I picked up some great advice about how to structure a social enterprise to recruit investors while safeguarding the mission. For example, you can create a non-profit that carries out the social mission, and is funded by the royalties or revenues from a for-profit company that can receive investment. It is important to get good legal advice on how to structure correctly early on.”
Just a reminder: Spread the word about social enterprise (#SocEnt) by sharing the #GlobalLove Campaign with your friends and loved ones this Valentine’s Day. Purchase an ethically-made or fairtrade product, learn about social enterprise and share it through Twitter and Facebook.