1. November 2009
Kristen J. McCormack
Institute for Nonprofit Management and Leadership at Boston University
Getting Ready for an Earned Income Venture

2. Todays Agenda
Defining Social Enterprise/Earned Income
Fun facts about earned income ventures
Are you ready?
If so, now what?
Lessons learned from successful ventures
Questions
3. 4. Most Common Ventures
Fee for service or tuition based
Service businesses (cleaning, moving)
Retail
Manufacturing/assembly
Software
Real estate
Rental housing
Restaurant/catering
Consulting
Agriculture
Packaging
Home repair
5. Why pursue a social enterprise?
Further the mission of the organization
Generate income
Diversify the revenue base
Serve constituents
Community relations
Revitalize neighborhood
6. Did You Know?
7. In U.S., 20.9 million women lived below the federal poverty threshold in 2007
8. The Womens Bean Project in Denver CO employs women from backgrounds of chronic unemployment and poverty to manufacture gourmet foods.
9. The Women's Bean Project does not hire women to make and sell bean products. We make and sell bean products to hire women.
10. Characteristics of organizations operating successful business ventures
6.45-10 years old
100+ employees
$12-24million budget
Top management is critical force
11. Profitable?
35% generate a financial surplus
19% are break-even
35% of ventures require a subsidy
12. On generating revenue
On average successful enterprises generate 12% of annual budget revenue

26% say more than 20%

13. 7% between 16-20% 14. 7% between 11-15% 15. 24% between 1 and 5% 16. 13% less than 1%