social entrepreneurship final

Methods of obtaining equity capital

1 direct loans of cash, 2 guaranteeing loans made by commercial banks and 3 reducing taxes by allowing interest to be deducted.

3 primary reasons to use outside equity in your business

1. reduce your own exposure to financial loss, 2 your business will not have increased costs in the form of interest, 3 brining outside investors into existing business can often reenergize it by providing new ideas, procedures and processes.

How do we measure value?

Accountability, evaluation, outcomes and impacts, effectiveness.

Which of the following is a challenge of the resource maturity stage?

Avoiding complacency

Social enterprise marketing strategy

External analysis, internal analysis, firm development, strategy selection and evaluation, communication, pricing

A company's goodwill is its best collateral.

False

A transfer method describing the first-time public sale of a stock listed on a public stock exchange is called a(n):

IPO

Legal obligations to give up things of value in the future are known as __________.

Liabilities

Types of accounting

Managerial, Tax, Financial

Strategies behind CRM

Market penetration, production expansion, market expansion, diversification

four ways to profit from bootstrapping

Minimize overhead costs- cloud computing, virtual storefronts, business incubators, business office co-ops. Maximize returns from employees- student inters, overtime, contractors. Minimize operating costs- outsource, subcontract, rent space, rent equipment, work from home. Maximize the results of marketing-word of mouth, publicity, press releases, donate.

__________ is the most used item on the income statement.

Operating income

The number one source of financing for small businesses is from __________.

The owners themselves

The resource maturity stage is characterized by a stable level of sales and profits over several years.

True

The usefulness of the income statement for managing a small business is related to the amount of detail available in the statement.

True

When it comes to promoting a small business that is just starting out, spreading the news by word-of-mouth is one of the surest ways to build a client base.

True

Myth 1 about growth:a social venture will not grow quickly unless it is in a high growth sector.

Truth: fast growth usually depends much more on local demand, proper management, and adequate funding than it does on trends in the overall sector.

__________ is an electronic equivalent of word-of-mouth advertising.

Viral Marketing

Fundraising strategies

Win, Keep, Lift

sales promotion

a form of communication that encourages the customer to act immediately, such as coupons, sales, or contests.

liquidity

a measure of how quickly a company can raise money through internal sources by converting assets to cash.

Balance sheet

a statement of what a business owns (assets), what it owes to others (liabilities), and how much value the owners have invested in it (equity).

community development organization

an organization authorized by the SBA to make insured loans to small businesses that are expected to increase economic activity within a specific geographic area.

Financial statements

are formal summaries of the content of an accounting system's records of transactions.

Critical success factors

are processes, benchmarks, or components of the business that are essential for the business to be profitable and competitive in its market.

5 areas in which firms want to do good

community impact, building trust, promoting a positive culture, enhancing flexibility, fostering innovation.

performance measurements

continuous, rating scale, binary.

Targeted recruitment

focuses on a smaller number of individuals who have specific skills needed for the organization's operations. An example of an organization that uses this approach is Teach For America.

Warm body recruitment

focuses on developing a large volunteer force without much regard for specific skills. This technique is ideal if the nonprofit is looking for support conducting major events or staffing ongoing low-skill operations. A noteworthy example of a non-profit that uses this sort of recruitment is Habitat for Humanity.

Concentric circles recruitment

focuses on keeping a steady flow of volunteers involved in an organization.

Income sources

in the US non profits receive roughly half of their income through fees and related earned sources; donations make up a fifth, and the government provides the balance of funding.

emergence

in which a person thinks about and takes actions toward starting a firm

IPO

initial public offering is where a business sells its stock to the public on a major stock exchange.

Income statement

is the primary source of information about a business's profitability.

LLC

limited liability company is a legal form of business organization that is created by filing required documentation with a state government. LLC's have a choice under federal tax law of being taxes as either corporations or partnerships.

Why measure value?

measuring the impact of social enterprises is not straightforward because they have a "double bottom line". While they have to make ends meet financially they also are supposed to feel to maximize social impact defined by their mission.

Debt capital

money borrowed for the purpose of investment in a business.

Growth strategies

product growth and market growth

personal selling is the process of selling your products and service; includes prospect and evaluate, prepare, present, close, and follow-up.

prospect and evaluate, prepare, present, close, follow up.

Value proposition

small business owners' unique selling points that will be used to differentiate their products and/or services from those of the competition

fee income

social enterprises have a number of ways to earn fee income. the most common route is through sales of a commercial product. non sales avenues exist for a fee income as well though.

product life style

stage 1-introduction. stage 2-growth. stage 3- maturity. stage 4-decline.

Mobilizing resources

step 1-define the capabilities needed for the social enterprise. Step 2-devise a human resource outline to meet each capability need. Step 3- develop a resource plan. Step 4- put on the numbers.

customer relationship management (CRM)

the process of tracking the customer's different contracts with the firm, and using this data to help improve sales as well as the customers experience.

business life cycle

the sequence or pattern of developmental stages any business goes through during the life span.

The accounting equation

the statement that assists equal liabilities plus owners' equity (assets = liabilities + owners' equity)

Retained earnings

the sum of all profits and losses, less all dividends paid since the beginning of the business.

Socioeconomic and demographic changes

there are two main types of socioeconomic threats to anticipate- NEED and INTEREST

Bootstrapping

using funds generated by business operations to capitalize growth.

existance stage

which is defined by having the business in operation, but not get stable in terms of markets, operations, or finances.

Social Enterprise Marketing

• Define target markets. The key question for social enterprise marketing is: Who should our clients (or donors) be? • Link to the clients (or donors). The key questions or enterprise marketing are: - How do we reach the clients? - What "price" attracts them? - How do we communicate with them?