Mobilising money for social change: the advantage of having a business model

Abstract

The main goal of social entrepreneurs is to realise social change. To reach this goal they need to mobilise resources such as human capital, knowledge and money. Compared to commercial entrepreneurs, social entrepreneurs often have an additional handicap, for example restrictions on profit distribution to shareholders. However, compared to other actors aiming at social change like non-governmental organisations (NGOs) and social movements, social enterprises may have an advantage, because their business model can generate sufficient income to enable them to survive in the long run. The literature on social movements pays considerable attention to issues of resource mobilisation. This paper uses insights from that literature in analysing the funding policies of three Dutch foundations that invest in social enterprises. Several dimensions in which resource mobilisation by social entrepreneurs differs are uncovered. A viable business case gives start-up social enterprises an advantage in their resource mobilisation approach over other organisations.