BUSINESS FUNDAMENTALS

FOR ENTREPRENEURS

Prof. Devdip Purkayastha

Indian Institute of Technology Bombay

Desai Sethi School of Entrepreneurship
[Link]

1
 MODULE 22
STARTING UP A NEW SOCIAL
VENTURE
 WEEK 11, MODULE 22
STARTING UP A NEW SOCIAL
VENTURE

PART 1
WEEKS 9 - 12

BUSINESS RISK BUSINESS INFORMATION

17 18
& MANAGEMENT & MANAGEMENT

BUSINESS TYPES SOCIAL BUSINESS

19 20
& MODELS DEVELOPMENT
STARTING UP A NEW STARTING UP A NEW
21 22
TECHNOLOGY VENTURE SOCIAL VENTURE
CREATION
BUSINESS CASE COURSE RECAP
23 24
DISCUSSION & WRAP UP
Module-22 Topics
What is a Social Business?

Social Business Planner

Business Plan Elements

Social Business Schemes

Social Business Models

Impact Funding
 What is a Social Business?
A social business is a ‘social mission’ driven
enterprise designed to address a social or
environmental issue in a financially
sustainable manner.
Unlike traditional businesses, whose primary
goal is to maximize profit for shareholders,
or non-profits that rely on donations and
grants, social businesses seek to create a
positive impact on society while generating
revenue to support their operations and
growth.
The profit generated by a social business is
reinvested into the business itself to further
its mission, rather than distributed to
shareholders.
Types of Business
FOR PROFIT BUSINESS

NON-PROFIT BUSINESS

SOCIAL BUSINESS
SOCIAL BUSINESS PLANNER
Beneficiary Profile
Demographics: Key details such as
age, gender, family size, and income.
Geographic Location: Regions or
communities where beneficiaries
reside.
Current Situation: Economic, social, or
environmental issues they face.
Skills and Education: Levels of
education, skill sets, and training.
Aspirations and Goals: Personal and
professional goals beneficiaries aim to
achieve.
Social Business Opportunity
Problem Identification: Specific social
or economic issue the business
addresses.
Market Gap: Existing gaps in services
or products for the beneficiaries.
Sustainable Development Impact: How
the business aligns with SDGs or social
impact goals.
Growth Potential: Future scalability and
scope of the opportunity.
Competitive Edge: Unique aspects of
the opportunity that other solutions do
not address.
Beneficiary Business Model
Value Proposition: Benefits the business
offers to improve beneficiaries' lives.
Revenue Model: Sources of revenue that
make the business sustainable.
Impact Model: How the business delivers
both financial and social returns.
Channels: Platforms or networks used to
connect with beneficiaries.
Beneficiary Journey: Key stages, from
awareness to impact, in beneficiaries'
interaction with the business.
Customer Profile
Segmentation: Specific sub-groups within
the beneficiaries or paying customers.
Customer Needs: Core needs or
challenges that align with the product’s
value.
Engagement Methods: Preferred ways
customers interact with the business.
Purchasing Behavior: Insights on how
often and when customers are likely to
buy.
Feedback Mechanisms: Regular ways to
gather insights and improve offerings.
Customer Product
Product Definition: Primary features and
functions of the product/service.
Customization: Tailoring aspects that
make the product suitable for
beneficiaries.
Sustainability: Eco-friendly or socially
responsible aspects of the product.
Quality Assurance: Steps to ensure the
product meets quality standards.
User Experience: Ease of use and
accessibility for the target beneficiaries.
Customer Pricing
Pricing Strategy: Method used to
determine affordable pricing (e.g.,
cost-plus, value-based).
Affordability: Ensuring product pricing
matches beneficiaries’ purchasing power.
Payment Terms: Flexible payment options
such as installments or subscriptions.
Discounts/Subsidies: Financial support or
discounts to improve accessibility.
Value for Money: Balancing price with the
perceived and actual benefit to
beneficiaries.
Supplier Profile
Supplier Selection: Criteria for choosing
suppliers aligned with the mission.
Supplier Relationships: Long-term
partnerships for reliable sourcing.
Ethical Sourcing: Fair trade practices and
social responsibility.
Cost Management: Maintaining affordable
costs for product sustainability.
Quality Standards: Supplier adherence to
quality for beneficiary products.
Supplier Product
Product Development: Regular
improvement based on beneficiary needs.
Production Scale: Capacity to produce
and distribute products at scale.
Distribution Channels: Routes to reach
beneficiaries efficiently.
Adaptability: Ability to evolve the product
based on changing needs.
Customer Support: Post-purchase
assistance to ensure beneficiary
satisfaction.
Supplier Cost
Cost Structure: Breakdown of fixed and
variable costs in operations.
Unit Cost: Per-product cost to ensure
pricing aligns with sustainability goals.
Cost Efficiency: Measures to reduce costs
while maintaining quality.
Breakeven Analysis: Point at which the
business covers its costs.
Long-term Financial Plan: Projected costs
over time for sustainable growth.
Beneficiary Impact
Community Impact: Effects on the broader
community or society.
Environmental Responsibility: Contributions
to reducing environmental impact.
Partnerships: Collaboration with NGOs,
government bodies, or other organizations.
Indirect Beneficiaries: People who benefit
indirectly from the business’s operations.
Social Returns: Broader social impact
beyond direct financial metrics.
Stakeholder Impact
Cost Structure: Breakdown of fixed and
variable costs in operations.
Unit Cost: Per-product cost to ensure
pricing aligns with sustainability goals.
Cost Efficiency: Measures to reduce costs
while maintaining quality.
Breakeven Analysis: Point at which the
business covers its costs.
Long-term Financial Plan: Projected costs
over time for sustainable growth.
THREE MINUTE
REFLECTION
Think of a Non-Profit or Social
Business? Please research:
▪ Who started up?
▪ How did they startup?
 WEEK 11, MODULE 22
STARTING UP A NEW SOCIAL
VENTURE

(Continued Part 2)
One District, One Product

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ODOP

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ODOP

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ODOP

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ODOP
ODOP
TRIFED

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TRIFED

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School-in-a-Box

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Feminine Hygiene

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Impact Funding

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THREE MINUTE
REFLECTION
Think of a Non-Profit or Social
Business?
▪ Please research and try to fill
up their Social Business Plan?
 End of Module

Indian Institute of Technology

Bombay
IIT Bombay, Powai, Mumbai 400 076, Maharashtra, India
Phone: +91 (22) 2572 2545 | Fax: +91 (22) 2572 3480
[Link]