Social Entrepreneurship Cheat Sheet
The core ideas of Social Entrepreneurship distilled into a single, scannable reference — perfect for review or quick lookup.
Quick Reference
Social Enterprise
An organization that applies commercial strategies to maximize improvements in social, environmental, or community well-being, rather than maximizing profit for external shareholders. Social enterprises can be structured as nonprofits, for-profits, or hybrids.
Theory of Change
A comprehensive description and illustration of how and why a desired social change is expected to happen. It maps the causal pathways from activities and inputs through short-term and long-term outcomes to ultimate impact.
Impact Investing
Investments made with the intention of generating positive, measurable social and environmental impact alongside a financial return. Impact investors actively seek ventures that produce both profit and purpose.
Benefit Corporation (B Corp)
A legal corporate structure that requires a company to consider the impact of its decisions not only on shareholders but also on workers, community, and the environment. B Corp certification is granted by the nonprofit B Lab.
Social Return on Investment (SROI)
A framework for measuring the extra-financial value — social, environmental, and economic — created by an organization relative to the resources invested. SROI assigns monetary proxies to outcomes that do not have conventional market prices.
Microfinance
The provision of small loans, savings accounts, insurance, and other financial services to low-income individuals or groups who lack access to traditional banking. Microfinance aims to empower the economically marginalized to start businesses and build assets.
Scalability
The ability of a social venture to increase its impact by expanding operations, replicating its model in new geographies, or enabling others to adopt its approach without a proportional increase in cost or complexity.
Collective Impact
A structured framework for cross-sector collaboration in which organizations from government, business, philanthropy, and civil society align around a common agenda, shared measurement systems, mutually reinforcing activities, continuous communication, and a backbone support organization.
Blended Value
The concept that all organizations simultaneously generate economic, social, and environmental value, and that these forms of value are inseparable rather than existing in trade-off. Coined by Jed Emerson, it challenges the traditional divide between for-profit and nonprofit sectors.
Social Impact Bond (SIB)
A pay-for-success contract in which private investors fund social programs upfront and are repaid by the government only if the program achieves pre-agreed measurable outcomes. SIBs shift financial risk from taxpayers to investors.
Key Terms at a Glance
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