Social enterprise is revenue generated from the sale of products, services, or any other work performed. This includes selling a product or a service for a fee, running a nonhealth business to create profits that are used to provide a service at no cost to clients, or providing training and consulting services at a fee to other organizations such as CSOs, businesses, and community groups.
A CSO can remain a nonprofit and use this revenue-based model. Although, if revenue becomes enough to sustain the organization, the CSO could transition into a for-profit, impact-focused business. Alternatively, a CSO can launch a separate for-profit subsidy or affiliated organization that is solely focused on revenue generation to support the CSO mission.
This model is especially good for:
A CSO with a service and/or product that community members or other organizations would be willing to pay for.
Key factors to Consider
Supportive policy and regulatory environment: Ability to identify and/or develop a product/service that can be legally sold with minimal or reasonable change to organizational registration or legal structures
Abundant market demand: Sufficient demand in the market and ability of consumer to pay for product or service at a price point that allows the organization to make a profit.
The right team: Team with the knowledge and skills to market a product/service and manage the revenue generation operations
Where to begin?
Is there a service/product the CSO can offer that a market is willing to pay for?
Examples in practice
➡️Nonhealth business generates profits to support the CSO mission: Population and Community Development Association in Thailand operates the popular restaurant Cabbages and Condoms. All the profits support the association and its programs in primary health and HIV prevention among other areas. Over the years, Cabbages and Condoms has expanded into resorts and inns and has established restaurants in Japan and England.
Source: Cabbages and Condoms.net [Internet]. Bangkok: Population and Community Development Association. 2023 [cited 2023 Jan 18]. Available from: http://www.cabbagesandcondoms.net/.
➡️Providing a service to other organizations for a fee: CAREMAT, a key-population-led organization in Thailand, recently established a social enterprise with support from USAID EpiC Thailand. CAREMAT staff developed a web-based data app that supports improved client case management and quality improvement across the health services workflow. CAREMAT formed Accelerate Community Technology Limited (ACTSE), a private social enterprise, to market the app to hospitals, clinics, and other potential client organizations.
➡️Selling a product/service for a fee/cost: Blue Sky Social Enterprise (BSSE) grew out of a small community-based organization (CBO) founded in 2008 with a focus on communications on HIV prevention in Ho Chi Minh City, Vietnam. In 2017, BSSE was established with a vision of becoming a leading organization in provision of HIV services. The same year, BSSE established the Nha Minh Clinic, which provides fee-based services, including HIV and STI screening and treatment, counseling, and home care for HIV patients. Profits from the clinic operation have enabled BSSE to set up “Helping Hands” funds that aim to reach the wider community, including emergency support during epidemics.
➡️Selling a product/service for a fee/cost: With financial and technical support from international projects between 2011 and 2015, Glink transformed from a four-member self-help group in Vietnam into a social enterprise chain of health clinics. The clinics provide a suite of testing and treatment services for a fee to support men who have sex with men (MSM) and transgender women. In 2021, Glink Foundation was established to invest in and fund business projects owned by MSM and transgender women. In early 2022, Glink Academy was launched as a training and capacity building center for community leaders who want to learn about social enterprises and community clinics.
