Experts enumerated the criteria for a successful social enterprise
- 03 October
The experts of Rosbank and Impact Hub Moscow enumerated the criteria for a successful social enterprise. They are self-sufficiency, the production of high-quality and competitive product and the presence on the market for more than 2 years. The key mistakes on the way to financial sustainability of a social business are insufficient analysis of target audience, dependence on grants and restricted market outlets.
These conclusions come from the review prepared by Rosbank and Impact Hub Moscow within the all-Russian program for social entrepreneurs “START DIFFERENTLY”. The review was made in order to expand the overview of social entrepreneurs from the field of inclusion about the possible models of project monetization and the achievement of financial sustainability. One of its parts is based on the study of the examples of successful inclusive businesses in Russia; another part is based on the analysis of the experience of the participants of the program.
The authors of the research recommend to beginning social entrepreneurs to work with new customer segments, restrict the number of beneficiaries, pay special attention to PR and offer optional services in addition to the main product to achieve success. These steps will help to build a successful strategy on the way to financial sustainability of a social enterprise.
“While preparing the research, we surveyed 30 experts in social business, each of which shared their view on the way how to establish a successful social enterprise. We hope that the information from the review will help the entrepreneurs to build a sustainable business that will not only help people but also net a stable income. Rosbank as a socially responsible institution makes a lot of effort to make life of people with disabilities easier and the development of social entrepreneurship is one more step in this direction”, Elena Kojadei, Director of Communications and Advertising Department of Rosbank.
“This review is a kind of a textbook with a compilation of efficient practices and verified strategies on the achievement of financial sustainability for social entrepreneurs. Its goal is to transfer the experience of successful entrepreneurs accessibly for the beginners. The review may be used as a manual for investors. We and the experts singled out 7 criteria for a successful social enterprise that will be useful in the assessment of startups”, Ekaterina Khaletskaya, Co-Founder and Director of Impact Hub Moscow.
Rosbank also held a public discussion “Inclusion without illusions: social business on the way to financial sustainability”, where the participants discussed the essentials of financial sustainability of a social business in the field of inclusion as well as the opportunities and perspectives after the ratification of the law on social entrepreneurship. The discussion started the training program for 12 finalists of “START DIFFERENTLY” who will work with Rosbank experts for 10 weeks in 5 educational blocks: social contribution of a business, finance, product development, sales and promotion.