HOW TO MAKE A SOCIAL
ENTERPRISE &
BUSINESS PLANNING
Topics Brief Assignment
COMM 410 Strategies of Social Enterprise
Group 1:
Carolina Araujo
Siddhant Arya
Sam Barnard
Mac Armstrong
Oscar Andersson
Professor:
Kareem Roberts
COMM 410 Strategies of Social Enterprise
September 19, 2022
Table of Contents
INTRODUCTION .......................................................................................................................................... 1
STEPS TO START A SOCIAL ENTERPRISE ............................................................................................ 1
1.
2.
3.
4.
5.
ARTICULATE A SOCIAL PROBLEM .............................................................................................................. 1
SURROUND YOURSELF WITH THE APPROPRIATE TEAM ............................................................................... 2
ESTABLISH A SOLID BUSINESS PLAN .......................................................................................................... 2
MARKET EFFECTIVELY TO DRAW IN INVESTORS ........................................................................................ 3
MEASURE YOUR IMPACT ........................................................................................................................... 3
REAL-WORLD EXAMPLE: ARTSCAPE ................................................................................................... 3
SOCIAL ISSUE ...................................................................................................................................................... 4
FUNDING ............................................................................................................................................................ 4
BUSINESS PLAN .................................................................................................................................................. 4
STRATEGIC OBJECTIVES ..................................................................................................................................... 5
ARTSCAPE’S PLAN .............................................................................................................................................. 5
OUTCOMES ......................................................................................................................................................... 5
CONCLUSION............................................................................................................................................... 5
REFERENCES ............................................................................................................................................... 6
Introduction
The concept of a social enterprise was originally developed to challenge the traditional
corporate culture that focused on maximizing profits and minimizing costs. It has since
emerged as a not-for-profit project where all revenue generated is reinvested into the
organization so that it can keep changing to meet current challenges. The funding for social
enterprises primarily consists of investments, grants, and fundraising endeavours.
Nowadays there are several ways to choose how to organize a social enterprise and various
issues in the world that need to be addressed. There is no right way to manage a social enterprise
since the solution to every challenge is individually tailored for each company. However, there
are five general steps to take into consideration:
Steps to start a social enterprise
1. Articulate a social problem
Firstly, it’s essential to find a social issue that can be addressed (and hopefully one that
resonates deeply with the founders!). It is also crucial that a revenue stream can be developed
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in the process of building the social enterprise. There are some social problems that need to be
addressed but don’t necessarily allow profit generation at long term, preventing the success of
the enterprise. Hence, both elements need to be thought out properly before proceeding.
2. Surround yourself with the appropriate team
Having a team that is not only invested in the cause but also an expert in the field is essential
to the company’s success. A group of diverse people allows you to get a global viewpoint: for
example, people from different backgrounds, work experience, and skillsets bring with them
different knowledge and experiences.
Hiring staff with a collective goal and similar values, and always communicating honestly and
clearly, is indispensable in establishing a good culture within the organization. The consequent
benefits include lower turnover rates, higher employer satisfaction, increased innovation, and
better employee work ethic.
3. Establish a solid business plan
A business plan is a document describing a company's core activities and how it plans to
achieve its goals. It essentially consolidates and formalises the previous planning and thinking
done into a document. In the context of a social enterprise, this document can be used to attract
investors and get an idea set in motion. Furthermore, they can be used by all companies as an
internal guide to keep an executive team focused on and working toward short- and long-term
objectives.
It should be noted that a business plan is not a static document; it is considered ‘living’ as it
evolves with the business. As an enterprise grows and changes, so too should its’ business plan,
so company board’s usually have an annual review to update their plan, based on successes,
setbacks, and other new information.
Although the elements of every business plan vary, they typically should include the goals,
structure/hierarchy, and sections on their products and services, marketing strategy and analysis
(e.g., SWOT analysis), financial planning, and a budget.
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An important consideration when creating a document like this is to have accurate assumptions
when making financial projects, or else cash flow shortages or restrictive budgets may pose a
problem down the line. Another consideration is that some flexibility must be built into your
plan, as market demand and economic situations constantly fluctuate, so both the company
staff and external stakeholders need to know that there are some precautions that have already
been implemented so that an enterprise can pivot if need be.
4. Market effectively to draw in investors
Decide on how to finance your endeavour: this can be publicly, through fundraising, or through
private channels instead, such as investors. Choosing the best method usually requires an
appropriated analysis of markets, competitors, and audience.
Hence, the enterprise must start by finding the right marketing strategy to reach the total
addressable market (TAM), and then create material that best represents its purpose and goal.
This could be by using its’ business plan to discuss gaining funds from investors, or by using
crowdfunding, charity events, incubators, etc., to secure grants from others who believe in your
social mission and want to contribute to the company’s success. Either way, communicating
the urgency of your issue and the novelty of your solution is key to developing your enterprise
further.
5. Measure your impact
Once the social enterprise can operate, shareholders and stakeholders will constantly monitor
its progress. Developing KPIs (key performance indicators) is fundamental since they help you
understand the performance of the company. These indicators can measure anything, from
finances, employees' productivity, the efficiency of PPE (personal protective equipment), etc.
Investors will need proof that their investment is making a difference, and these KPIs will
highlight that, building more confidence for the firm and hopefully leading to more funding.
Real-World Example: Artscape
Artscape, a non-profit organization, is a real-world example of a social enterprise. This
company with artists, community leaders, public policy advocates, and urban developers, with
the mission to make space for creativity and to transform communities. The core of its work
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focuses on developing real estate projects, programs, and services to empower artists and better
connect them with society.
Social issue
In 1986, Toronto’s real estate market was booming, and the city was cracking down on illegal
artist workspaces without any health and safety concerns. Artscape was founded of the need to
address this challenge.
Funding
The early success of Artscape was marked by a commitment of operational funding by the City
of Toronto and a collaboration with Toronto Economic Development Corporation. This
funding allowed the creation of its first artist studio project at 60 Atlantic Avenue in Liberty
Village, in 1898.
Business Plan
Artscape was born with a clear mission: making space for creativity and transforms
communities. Their first business plan, Artscape 1.0 (1986-1990), focused on conducting
research and building a relationship with the City of Toronto. Key accomplishments during
this period included, for example, the publication of No Vacancy, a report that related
challenges facing Toronto artists and art organizations.
Over more than thirty years, Artscape has evolved from a Toronto-based affordable artist
studio provider to a global leader in creative placemaking. In the beginning of 2018, Artscape
understood there were some challenges that artists were going through, mainly: Affordability
crisis (e.g.: lack of affordable space for artists); and Precarious work (e.g.: their incomes were
often supplemented by low-wage service jobs). Consequently, the struggle to sustain a career
as an artist was intensified.
With this said, let’s investigate Artscape 5.0 (2018-2022) – Artscape’ strategic plan developed
to face those challenges.
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Strategic Objectives
Based on their background and mission, Artscape 5.0 was able to define its own major strategic
objectives: Cultivate thriving communities; Serve more people and communities; Build
organizational resilience.
Artscape’s Plan
After an appropriated analysis of markets as well as competitors, Artscape was able to decide
how to make its objectives become real. At this point, the enterprise selected its business’
services, decided their marketing and sales strategies and, finally, implemented Artscape 5.0.
Some of the main features of this business plan were: Expand programs and services; Develop
new projects primarily in Toronto; Build a creative placemaking knowledge locally/globally
(e.g.: Artscape Daniels Launchpad – a new hub for art and design entrepreneurship scheduled
that opened in the Fall of 2018).
Outcomes
Finally, by establishing and monitoring its quantifiable financial/mission goals, and defining a
financial plan, Artscape 5.0 presented clear and realistic projections for its outcomes, for
example: Tenants, members, owners, and clients of Artscape’s facilities, programs and services
will grow from 2,700 to 10,000; Artscape's Toronto-area facilities will grow from 11 to 18;
Volunteer and staff satisfaction of 74% in 2017 will be improved.
Conclusion
Social enterprises give entrepreneurs the opportunity to run a healthy organization that has a
positive impact on society. However, the work also involves some challenges that must be
considered to achieve the best possible result. The company must have a strong foundation of
competence and knowledge so that it can appropriately distribute revenue to the social projects
that it hopes to address. A business plan will therefore be of utmost importance for the company
to have a functioning structure and clear objectives. There must also be mechanisms to measure
its’ impact on society, usually using KPIs (key performance indicators). These indicators can
also serve as proof for investors or contributors, which can be a large part of a social enterprise's
source of income. Finally, it is important to be able to analyse a company’s development and
performance, so that it can make changes as required and continue to evolve.
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References

https://www.investopedia.com/terms/b/business-plan.asp

https://www.propelnonprofits.org/wpcontent/uploads/2017/10/social_enterprise_business_plan_Propel.pdf

https://www.growthink.com/businessplan/help-center/social-enterprise-business-plan

https://www.artscape.ca/about-us/evolution/

https://www.artscape.ca/wp-content/uploads/2017/10/Artscape-Strategic-Plan-2018-to2022.pdf
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