Scaling social enterprises: A method to the goodness

Abstract

This study was conceptualized based on some experiences I had while doing my summer internship in the Private Equity space in April - May 2022, and a couple of elective courses completed thereafter. All in all, it seemed as if the tradeoff between Impact and Profitability was insurmountable, and hence any organization that set out to do both would end up compromising on one of the fronts. And if, by chance, they ended up being able to deliver both impact and profitability, then scale would be questionable. During the course of this study, however, this paradigm was called into question and instead the question that this study now tries to answer is this: 'What are the pre-requisites to successfully scaling a social enterprise?' The study reveals that, aside from the more prominently felt needs such as capital, social enterprises need to have a strong impact motive that is conceived before the business objective, and a focused founder, strong top management & grassroots level workers. Thus, the importance of good leadership, team structure & involvement as well as motivation comes through, though these are commonly dismissed qualitative factors.