Analysis of Key Concepts in Social Entrepreneurship Ventures Report

This report delves into the core concepts of social entrepreneurship, exploring creativity, innovation, risk-taking, ambition, and self-confidence as key drivers. It defines social entrepreneurship as an approach that mobilizes resources to solve social, cultural, and environmental problems. The report then analyzes the relationship between annual revenues, general administrative costs, and executive compensation within a non-profit organization, using data from the GuideStar website to calculate the percentage of total revenue spent on these expenses. The analysis reveals the financial dynamics of a social venture, providing insights into revenue generation, expense management, and the allocation of funds in relation to program services, administration, and fundraising efforts, highlighting the importance of financial sustainability for social enterprises.

Running head: CONCEPTS IN SOCIAL ENTREPRENEURSHIP VENTURES 1
Concepts In Social Entrepreneurship Ventures
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CONCEPTS IN SOCIAL ENTREPRENEURSHIP VENTURES 2
Concepts In Social Entrepreneurship Ventures
Social Entrepreneurship ventures is an approach by start-up enterprise and entrepreneurs
in which they mobilize funds and come up with solutions of solving cultural, social, or
environmental problems. It majors on the process in which the economy of a region develops
with its capability to take suitable trustee to take plans to the customers ("Candid: Search",
2019). The main purpose of this paper is to provide a definition of social entrepreneurship and
motivate large scale social change and such strivers simultaneously do to direct such matters of
social issues and problems and permit change to go higher all over the way.
Community problem solvers promote differences to happen. They take hold of chances
which others fail to attain, make the ways better, design discovered attempts and to come up with
opportunities modify societies. Some make use of their knowledge and perception to put the
universe in a good position. They put together overarching plan of a company with meaningful
engagement with employees in a manner that aid in coming up with important developments in
areas around the universe.
Core Concepts Specific to Social Entrepreneurship
The main concepts include:
Creativity and Innovation
Most entrepreneurs are innovative and creative. They possess the act of turning new ideas
or imaginations into reality. Entrepreneurs work on creating more business opportunities thus
providing more employment options which increases their income. Through innovation, social
entrepreneurs can apply the created ideas to those opportunities to meet societal needs. The main

CONCEPTS IN SOCIAL ENTREPRENEURSHIP VENTURES 3
purpose of social entrepreneurs is to continuously grow and renew enterprises with new or better
quality products.
Risk-Taking
Social entrepreneurs ought to take risks which needs them to be patient in such a way that
they venture into a business not minding the outcome. This takes time and effort to go from
interpretation to making use of the ideas.
Ambition
In entrepreneurship, entrepreneurs strive to thrive and succeed. Ambition is the key
value that one needs because it involves coming up with new businesses to gain profit.
Self -Confidence
A social entrepreneur must be confident with himself before venturing into any
entrepreneurial practice since it is a key to success. They believe that whatever they do will bring
them favourable outcomes. They also believe that what they are doing will bring them prosperity
regardless of external challenges.
The Relationship Between Annual Revenues, General Administrative and Compensation of
Executive officers
Taking an example of a non-profit organization that is listed on the guide star website, the
social venture was able to raise $499,553 as total revenue. In expenses the company spend
$451,274 on program services, $106,144 on administration and $27,569 on fundraising, bringing
the total amount of expenses to $584,987("Candid", 2019).

CONCEPTS IN SOCIAL ENTREPRENEURSHIP VENTURES 4
The Percentage of Total Revenues Spent on General and Administrative Costs
Based on the above figures, the percentage of total revenue as compared to general and
administrative costs can be calculated as below,
=$499,553÷$584,987
0.8540 = 85 %
Percentage of fundraising to Total Revenue = $499,553 $ ÷ 27,569 18.12 1812%
The percentage of total revenue to general and administrative is 85%, which means that the
revenue raised is only able to meet 85 % of the expenses. An extra amount of 15% would have to
be sought from elsewhere to meet the best part what has been spent.
Revenue and Expenses
Fiscal Year 2010
Revenue
Contributions, Grants, Gifts $246,654
Program Services $252,926
Membership Dues $0
Special Events $0
Other Revenue $0
Total Revenue $499,553
Expenses
Program Services $451,274
Administration $106,144
Fundraising $27,569
Payments to Affiliates $0
Other Expenses $0
Total Expenses $584,987
Source: Self-reported by organization

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References
Candid. (2019). Retrieved 10 October 2019, from http://foundationcenter.org
(2019). Retrieved 10 October 2019, from https://www.guidestar.org/profile/13-3238657