About the organizational models

You can search for one or many social entrepreneurs from the Schwab Foundation community by name, country, region, sector in which they are active or organizational model. We distinguish three types of organizational models:

Leveraged non-profit ventures
The entrepreneur sets up a non-profit organization to drive the adoption of an innovation addressing a market or government failure. In doing so, s/he commits a cross section of society, including private and public organizations as well as volunteers, to drive forward the innovation through a multiplier effect. The organization depends on outside funding for its survival, but its longer term sustainability is enhanced because of the commitment of a multiplicity of actors to the vision and objectives of the organization, which often ends up transcending the organization itself. Over time, the founding entrepreneur can morph into a figurehead, in some cases for the wider movement, as others assume responsibilities and leadership.

Hybrid non-profit ventures
The entrepreneur sets up a non-profit but the model includes some degree of cost-recovery through the sale of goods and services to a cross section of institutions, public and private, as well as to target population groups. However, to be able to sustain the transformation activities in full and address the needs of clients, who are poor or otherwise marginalized from society, the entrepreneur must mobilize other sources of funding from the public and/or the philanthropic sectors. Those funds can be in the form of grants or loans, and even quasi-equity.

Social business ventures
The entrepreneur sets up a business to drive the transformational change. While profits are generated, the main aim is not to maximize financial returns for shareholders but to grow the social venture and reach more people in need effectively. Wealth accumulation is not a priority, and profits are reinvested in the enterprise in order to fund expansion. Entrepreneurs seek investors who are interested in combining financial and social returns on their investments.