10 KEY POINTS OF SOCIAL BUSINESS

10 KEY POINTS OF SOCIAL BUSINESS

1. Creating social value or Blended value or creation of Empowerment and economic development.
2. Financial sustainable 
3. Utilization of social and local Resource 
4. participatory inventory with people 
5. work with innovative 
6. Eco-Findley nature
7. Identifying problem as an opportunity
8. Good connection with market  
9. work with social investor 
10. Social and auditing the value
11.  

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Difference between Cooperative and Producer Company

Difference between Cooperative and Producer Company 

Cooperative company

1. It registered under the Cooperative society Act
2.  Cooperative company is single objected
3. Cooperative company share is not tradable and transformable 
4. Cooperative company Area of operation is restricted
5. Cooperative company membership is individual and cooperatives
6. In Cooperative company one member can vote only one vote but register of cooperatives have veto power
7. Cooperative company borrowing power is restricted

Producer company

1. Producer company registered under the Indian company Act 
2. Producer company is multi  objectives 
3. Producer company area of restriction is entire union of India take operation
4. Producer company share is not Tradable but it can transferable to limited members on per value
5. Producer company membership will be individual, group, Association, producer of service.
6. In  Producer company one member can vote only one vote company can not hold veto power.
7. Producer company borrowing power is more freedom and more alternative.  

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Social Return On Investment

Types of SROI

1.      Evaluate: this is conducted retrospectively and based on actual outcomes that have already taken place.

2.      Forecast: it measures the “How much social value will be crated if the activities meet their intended outcomes.

THE PRINCIPLE OF SROI

 SROI developed from the social accounting and cost-benefits analysis and based on seven principles.

Principle:

1.      Involve stakeholder

2.      Understanding what change

3.      Value the thing that matter

4.      Only include what is material

5.      Do not over claim

6.      Be Transparent

7.      Verify the result

Judgment will be required through the SROI analysis. So the principle of materiality will be guide the judgment.

What is Materiality?

It is accounting term information is materiality if it has potential to effect the readers or stakeholders decision. Like that piece of information is material if it missing it out of the SROI it would misrepresent the organization activity.

Carrying out SROI analysis we should follows six stages

1)  Establishing scope and identifying key stakeholders

Here you have to clear boundaries about what your SROI analysis cover. Who will involved in the process and how..

2) Mapping outcomes:

By engaging with your stakeholders you will develop an impact map. This shows the relationship between inputs, outcome, and outputs.

3) Evident out comes and giving them a value:

This stage involves finding data to show whether outcomes have happen or no and then evaluating.

4) Establishing impact:

Showing the collected evidence on outcomes and mentioned them those aspects of changes that would happen.

5) Calculating the SROI

 This stage involves adding up all the benefits, subtracting any negative and comparing the result to the investment.

6) Reporting, using and embedding:

This involves sharing finding with stakeholders and responding to them, embedding good outcomes process.

How can SROI help your organization for more sustainable:

·         raising your profile

·         improving your case for further founding

·         marketing your tenders more persuasive

What is social accounting?

It is an approach used to measure the social value creation. It start from an organization’s started social objectives.

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Microfinance Note's

  What is Micrfinance?

It is providing of financial service to the low income self employed people or clients or who lacking to access the banking and related service .

Not only giving the micro credit to the poor rather than. It has an objectives is to assist poor to work their way out of poverty.

 

Characteristics of Micro finance

Microfinance services are aimed at the poor clients, who do not have access to formal financial sources? Microfinance has its unique characteristics, which are as follows:

• Mostly it is collateral free .Mostly it is collateral free.
• MFIs go to clients rather than clients going to MFIs.
•  Simplified savings and loan procedures Simplified. savings and loan procedures

Key Principles of Microfinance Key Principles of Microfinance

1. The poor need a variety of financial services, not just loans.

2. Microfinance is a powerful instrument against poverty Microfinance is a powerful instrument against 3.Microfinance means building financial systems that serve the poor serve the poor 

4. Financial sustainability is necessary to reach significant numbers of poor people number.  

5. Microfinance is about building permanent local financial institutions.

6. Micro credit is not always the answer Micro credit is not always the answer

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The Meaning of  "Social Entrepreneurship"

Social Entrepreneur:

Some one who recognizes a social problems as an opportunity and uses the entrepreneur principles to organize create and manage venture to make a social change or produce social value.  

 Basic principles of building social enterprise:

                                                                                                                                   by Jerr Borchee

• Revenue model
• "Be a player or do not play"
• Income Strategies
• Mission driven products and series
• Understanding the difference in Innovators, Entrepreneur and Professional managers
• Non profit culture  

For being social Entrepreneur:

                 Knowledge -Practice-Habit 

Innovation-Evaluation possible and gets

Creativity-Evaluation not possible and its inborn

Social Entrepreneurship:

Having business mind or head with social heart.

Key Traits of Social Entrepreneurs: 

• Willingness to self correct.
• Willingness to Share credit.
•  Willingness to Break Free Of Established.
• Willingness to Cross Disciplinary Boundaries.
• Willingness to Work Quietly.
• Strong Ethical Impetus.   

S-Simple

M-Measurable

A-Achievable

R-Realistic

T-Time bound.

Social Entrepreneurship:

Combines the passion of business like discipline, innovation and determination.

EX- Homeless Shelters that start business to train and employ their residents.

Entrepreneur:

Its originated since in 17th and 18th century French economics meaning is " Some one who undertake a significant project or activity.

Theories of Social Entrepreneurship: 

Jean Baptiste Say(19th century)

"Entrepreneurs create value"  by shifting economic resource out of an area of lower and into an area of higher productivity and greater yield.

Joseph Schumpeter:

 Its also know as Creative - destructive Theory, Entrepreneur as the innovator who derive  the "creative-destructive" process of capitalism.by serving new market or crating new ways of doing things, they move the economy forward.

Peter Drucker:

Its also know as Current theories of  Entrepreneurship. Here do not require entrepreneur to cause change, but they are the once exploit opportunities that cause change.

"The Entrepreneur always searching for change, respond to it and Exploit it as an opportunity".

Difference between Business and Social Entrepreneurs

Business Entrepreneurs:

• Mission- Is subjected to the market.
• Wealth - Profit is the main aim.
• Value-Is created when customers are willing to pay more. 

Social Entrepreneur:

• Mission-Is Explicit and External.
• Wealth -Just a means, not and end.
• Value-Value measured on the positive effect on public and difficult to measure. 

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10 Principle of Fair Trade 

1) Creating opportunity for Economically disadvantage Producer.

2) Transparency and Accountability. 

3) Fair Trading Practice.

4) Payment of a fair Price.

5) Ensuring no child labour and Forced labour.

6) Commitment to NON Discrimination, Gender Equity and Freedom of Association.

7) Ensuring Good working conditions.

8) Providing Capacity Building.  

9) Promoting Fair Trade.

10)  Respect for Environment.

 

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KEY CHARACTERISTICS OF PRODUCER COMPANIES 

1. It is registered under the Indian company act 2002. Ownership and membership are primary producers.
2.  In producer company members equity cannot be traded. However, it may be transferred only with the approval board of directors of the producer company. 
3. Clause of private limited company shall be applicable to the producer companies except the clause of specified in producer company Act.
4. Producer company is with limited liabilities  and limited only by  share capital. the liability of the members is limited to the unpaid amount of the shares held by them.
5. The minimum paid up authorized capital is 5lakh for a PC.
6. Minimum number of producer required to PC is 10 and also there is no limit for maximum number of members. For agriculture based producer company 800 to 1000 is good size for initial years to make it economically viable.
7. There cannot be private or government equity shake in PC. Which implies that PC cannot become public or deemed public limited company.
8. The area of PC operation is the entire country. 

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