Many NGOs are looking for ways to enhance their sustainability, diversify their income streams and become less dependent on external funding. Many opt for a transition from an international development-dependent organisation to operating as a social enterprise. Being a social enterprise means offering valuable products and services, in-line with the organisation’s mission, while at the same time contributing to meaningful social impact. Social Entrepreneurship combines a market orientation with a social purpose, generating both financial and social revenues. To prepare for this transformation, NGOs need to understand the model of social enterprise: that is business models, value proposition, financing streams and outputs. They need to define a step-by-step approach to transforming an NGO into a social enterprise and how to complement an enterprise approach with a domestic support raising (DSR) approach; complementing financial sustainability with a ‘social license to operate’.
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