In a period where resources for social needs are becoming scarcer, nonprofit organizations are exploring new avenues to generate the resources necessary to sustain and grow their organizations. One of these options is social enterprise œ the use of profitable business ventures as a means to generate unrestricted income.
In many cases, the challenge of creating a successful business from the ground up is larger than many nonprofits are prepared to undertake. Business success largely depends on identifying a viable opportunity, creating a profitable business model, and consistently mastering operational systems and processes. Nonprofit organizations often struggle to identify and exploit such opportunities for financial gain. Although nonprofits may have a clear understanding of the needs in a given community and be able to raise the necessary capital to start a business, they are frequently unable to address the service delivery, marketing, and accountability challenges that all small businesses face.