Tuesday, July 27, 2010

What does it mean to be a "more than profit" organization?

Since starting my internship w/ The One Cup Project (Seattle, WA) about a month ago, I've been trying to nail down what it means to be a "more than profit" organization. After researching various media outlets, wikis, and business models, I found there was little information regarding any sort of characteristics of this growing business trend. So what do we know?

A "more than profit" organization is one that sells or distributes a product or service for a profit while simultaneously funding social change. Take a look at the business plan for Tom's Shoes. For every 1 pair Tom's Shoes sells, the company gives 1 pair back to a child in need. It's a great plan, and a great story. It's also an example of "more than profit." The One Cup Project sells a 1 pound bag of coffee for $11. $2 of that purchase goes to World Vision. Through matching grants, the $2 is turned into $11, all of which goes to fund World Vision programs throughout the world. It's an innovative dollar for dollar strategy. These are just two examples of companies that employ this kind of business plan.

When considering what it means to be "more than profit" we can also consider what is means to be a social entrepreneur. According to Wikipedia, a social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. On that note, I came across an interesting organization while sifting through recent business trends. Calfee Design is helping entrepreneurs in the developing world make locally sourced bamboo bicycles for domestic and international sale. Through the Bamboosero initiative, Calfee set up two bike-building groups in Ghana who build frames using locally sourced bamboo before shipping them to the US. The Ghanaian entrepreneurs earn about $150 for every frame they build.

Social change is indeed a growing business trend, which is evidenced by the popularity of some of these organizations. Whether you call it "more than profit" or social entrepreneurship, it's happening now, social change is afoot. I'm interested in seeing where this trend will take us in the near future.

1 comment:

  1. This is a great post that sheds light on a rapidly changing, growing and morphing business model. This is the time for those that desire to do good to actually have many different avenues to do just that. People have always voted with their wallets, now they can do so much more.
    Nice work, Matt.

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