A Fine Balance: What Inner City Renovations taught us about managing social and economic objectives inside business models

May 8, 2008| Brief

What are reasonable profitability targets for a social enterprise start-up with a mission to create employment for disadvantaged populations? How does external financing play a role in the execution of the social mission and how does a social mission as a key part of the business model impact the ability to reach profitability targets? SCP showcases one of our early investments and highlights key learnings about the inherent mission tensions in these business models.

“We knew that in order to understand the “blended value” (social and financial) of these kinds of investments, we would need a different kind of measurement tool to help us and our portfolio organizations understand their unique value creation – a Social Return on Investment.”

A document titled A Fine Balance from Social Capital Partners explores managing social and economic objectives inside business models, with insights on profitability targets, SCP's beginnings, and early assumptions about financing for social enterprises.
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