How to generate steady revenues for your social enterprise

The importance of a steady revenue in Social enterprises cannot be overemphasized. Yet there exists a different between funding sources and revenue streams.

A new Social enterprise that’s just starting up may attract and secure start-up funding to support its activities for a defined period. However, a social enterprise must demonstrate to the funders that it will be able generate a revenue stream that will operate and expand its service or product in the foreseeable future past the funding period.

How do Social enterprises generate steady revenues (revenue models)?

Revenue model names vary from country to country; with the core activities and impact remaining the same. Below are three common revenue streams with examples from Zambia.

   1. Service providers- These ones provide professional services such as impact reporting, business model design,          technology and education.

      In Zambia examples include Bongo Hive, Lima links and AgriPredict.

   2. Robin hood (cross subsidizers) operate mainstream business and use the proceeds to support social activities.         Gigibonta in Zambia falls into this category.

       The Social enterprise sells Italian ice cream, pastries, coffee and juices at the mall. The proceeds are used to               support education and vocational training for OVC.

   3. Regenerators’ social impact comes by providing employment to people who are facing complex personal                 challenges such as disability, drugs and alcohol abuse.

Alive and Kicking Zambia trains and employs disadvantaged people among them people living with disabilities to hand stitch footballs which are then sold through supermarkets. The profits realized are ploughed back into the business to expand its impact.