A Double Line Venture - Assignment Example

PROPOSAL FOR A DOUBLE-LINE VENTURE Entrepreneurship is one of the promoters of the global economic development. Irrespective of limitations of opportunities and resources, most of the entrepreneurs are characterized by advanced business strategies that ensure that they survive in the contemporary business environment. A number of such opportunities in new and existing markets focus mainly on the needs of the underprivileged or undeserved customer segments. The primary purpose of investing in a double-line venture is to improve the living standards of local communities through social and economic programs. However, the business venture must assess and scrutinize the progress of the initiative to determine potential strengths and weaknesses. Meanwhile, inefficiencies and market failures will arguably contribute to emergence of numerous opportunities vital for growth and expansion of the double-line venture. Despite the numerous risks and potential challenges, the business venture will continue to capture the imagination of nonprofits and funders alike. The essay primarily focuses on a proposal for double-line venture. Keywords: Entrepreneurship, business venture, social enterprise, for-profit venture, nonprofit enterprise, double-line, second bottom line, social causes, track record, social responsibility TABLE OF CONTENTS Introduction………………………………………………………………………………………4 Context for assessing the financial and social mission impact…………………………………...6 Monitoring progress of the double-line venture…………………………………………………..7 Credibility of the double-line venture……………………………………………………………10 Impact value chain……………………………………………………………………………….10 Feasibility of the double-line venture……………………………………………………………12 Expansion of the venture and potential challenges………………………………………………13 Conclusion……………………………………………………………………………………….14 References……………………………………………………………………………………….16 Introduction Entrepreneurial ventures pursue opportunities regardless of the resources they have and control. However, discovering the opportunities that lie outside of the current market structures remains a significant challenge to virtually all entrepreneurial ventures worldwide. A number of such opportunities in new and existing markets focus primarily on the needs of underprivileged or underserved customer segments. In most cases, inefficiencies and market failures contribute to the emergence of numerous opportunities. Entrepreneurs can successfully mobilize resources to help in resolving market failures in particular sectors of the economy and provide a viable solution to specific social problems. The primary objective of the double-line venture should be to create a new socially valuable product or service that will ultimately address the aforementioned challenges. In addition, the business venture, through its double-line program (second bottom line), is committed to measuring performance in relation to potential positive impacts on local communities. It also uses the power of business to bring about environmental and social change through various social enterprises and initiatives. This paper main purpose is to analyze the entrepreneurship in the global perspective; and specifically to highlight the concept of double line business concept. The idea of measuring conventional financial accounting concurrent with the social return will be the center of focus for the company since the lines between investing and grant-making have arguably begun to blur. The social program seeks to create positive relations between the business venture and local communities. Although the company is a form of for-profit organization, it is also focused on supporting and improving the welfare of the locals, as well as venturing into social enterprises. It is worth noting that, CSR unlike double-line, has often resulted in new opportunities for further growth and revenue accumulation while at the same time creating social welfare for the benefit of employees and the local communities. In addition, the company considers Double Line as entrepreneurial venture that will significantly help it achieve measurable financial and economic outcomes. Meanwhile, the company has invested in Social Return on Investment to quantify and evaluate the economic and social implications of the double-line venture. PROPOSAL FOR A DOUBLE-LINE VENTURE Part of the strategic management objectives of a company is to uphold social responsibilities. Social responsibility will help the company sustain its profits in the long term. Incidentally, sustainability is part of the conventional management theory. The company is looking forward to generating profits essential for infrastructural growth and development. On the other hand, the second bottom line program and strategy of the company will be to reduce poverty levels and boost standards of living of the people in the area (Gidron & Hasenfeld, 2012, pp.19). The efficiency ratio and portfolio at risk shows that the business has successfully mobilized sufficient funds to improve lives of underprivileged people, as well as promoting economic justice and social welfare. For instance, the company contributes labor and money to social causes and charities. In essence, the company’s second bottom line program will create economic growth and development to local communities (Gidron & Hasenfeld, 2012, pp39). Economic development is part of the long-standing investment that will enhance sustainability of virtually all short term and long term objectives. Meanwhile, the business should assess the environmental and social impact of various processes and products. On the other hand, the double-line strategy and approach is vital for long-term growth of the company. Context for assessing financial and social mission impact The double line will help the company apply more useful and rigorous methods for the assessment of social returns and projected outcomes. The movement towards social accountability is neither unique to a sector nor focused on particular market structure (Volkmann et al. 2012, pp. 193). Instead, it aims to boost the social welfare and sustainability of the business enterprise in light of the growing economic and social challenges facing local communities. The venture will also help the company managers to assertively describe the impact the organization has on the local economy, environment, and the lives of future generations of customers and workers. In the same way, many companies worldwide are increasingly showing interest in more tangible accountability thanks to the social impact they create for each granted or invested dollar. Best practices will also emerge as the company shows a plausible commitment to investing in double-line without necessarily adhering to established standards. In line with the conventional rules and objectives of modern business, the venture is determined to follow accepted codes or principles of international legal infrastructure and accounting to help in effectively reporting on financial returns. Like many contemporary organizations, the venture is committed to assessing the social impacts of its operations (Volkmann et al. 2012, pp. 234). Similarly, the enterprise should adequately communicate and document non-financial and mission-related performance- social returns included. The future practice should focus more on carrying out in-depth interviews with workers, customers and funders about potential outcomes of the non-financial activities. However, it is important that the organization reviews the feasibility and credibility of double-line to understand its overall implication effectively for the day-to-day activities (Doherty & Thompson 2006, pp. 4). Apparently, feasibility is the extent to which the measurement tools will be helpful and applicable to a rather strenuous environment. For instance, the venture should consider costs, ranks, and man-hours when assessing sustainability of double-line. Credibility, on the other hand, implies the extent to which the most recommended approach will be adequately rigorous to provide measures that are highly credible for public policy and social returns. The venture will invest in double-line program to redeem customers and workers’ confidence in its commitment to improving lives of people and boosting the economy of the region. In essence, the program will be integral to advancing its social responsibility initiative. Part of the organization’s mandate will be to enlighten its workers and customers about the importance of social responsibility to the organization and society in general (Doherty & Thompson 2006, pp. 23). Besides, the organization will act as agents of social and economic change in the region. Monitoring Progress The business venture will have to monitor continuously and evaluate the progress of a number of social and economic enterprises and processes. The primary purpose of investing in double-line program is to improve the living standards of local communities through social and economic initiatives. As a result, the organization will have to scrutinize the progress of the venture to determine potential strengths and weaknesses. For instance, the organization ought to liaise with the management of various schools and health care facilities to evaluate the success of its long-term initiative to provide social amenities for the benefit of local communities (Ridley-Duff & Bull, 2011, pp.67). In particular, educational facilities will play a vital part in reducing illiteracy levels in the area and creating a new crop of professionals who will take up managerial jobs at the venture and in other businesses operating in the area. Hospitals, on the other hand, will help improve health of the locals and reduce mortality rate, previously resulting from lack of adequate health care services in the area. The double-line venture will also inspire the local communities to invest in business and other income-generating activities for purposes of raising their living standards (Ridley-Duff & Bull, 2011, pp.89). However, the business venture must educate community members on the benefits and intent of the venture to avert possible rebellion from a few locals who could probably be suspicious about such activities. However, the initiative will mostly receive a positive reaction from the locals because most people tend to associate with programs or initiatives that will improve their livelihoods. The organization could use process tools to track and monitor the effectiveness and efficiency of variables and indicators of change. Accordingly, the organization will evaluate the extent to which the social responsibility program has positively or negatively impacted the operations of the business and amount of revenues collected over a given period. Impact methods, on the other hand, are tools or business instruments that relate actual outputs and potential outcomes. It also attempts to prove the effects of incremental and social outcomes on the business and prospects for future expansion (Doherty & Thompson 2006, pp. 18). In essence, the organization must evaluate the feasibility and sustainability of its double-line venture, as well as examine the impact of social responsibility on long-term growth and development. Even as the business venture widely expects positive outcomes out of the social responsibility program, it should not overlook potential adverse impacts the initiative might have on its revenues (Plummer, 2011, pp.15). Since the primary purpose of starting and running a business venture is to make profit, the venture should find alternative means of meeting its social responsibility goals if the double-line programs prove hostile to its growth and development. For instance, it might partner with competitors and other business ventures in the area to collectively work toward improving the social and economic status of the local community (Doherty & Thompson 2006, pp. 51). In this regard, the business venture will arguably contribute a smaller portion of its revenues to improving the welfare of the locals socially and economically. Meanwhile, the business venture must have a high-quality assessment of the impact of double-line program thanks to vastly useful tools vital for tracking process outputs and social outcomes. The impact assessment data will particularly help the business venture decide to continue the double-line program or put an end to it (Price, 2009, pp.51). That is, the program should not compromise or impede the organization’s commitment to making profits for growth and development. Nevertheless, the venture should consider the economic and social value of its social responsibility initiatives before eliminating or increasing financial support for the program. In most cases, the cost of adopting or implementing social causes decrease in the long term as the business venture increasingly find alternative ways of solving numerous social problems affecting local communities (Phillips & Phillips, 2011, pp.120). For instance, the venture might find some reliable partners who are fully committed to helping the organization accomplish its social initiatives for the locals. As a result, the cost of implementing the double-line venture might decrease over a given period. However, the organization should understand its operational agenda/processes and cultural willingness to acknowledge the importance of accountability. It should also embrace performance assessment – a practice that will help monitor and evaluate the benefits and shortcomings of double-line venture (Price, 2009, pp.74). It might be impractical to implement the double-line venture if the top management lacks the willingness or motivation. Overall, social causes that benefit local communities require a collective commitment of the management, employees, the locals, and other key stakeholders. In particular, the local governments and environmental management authorities must take up active role of sensitizing the locals about the importance or value of the social causes in the attempt to find lasting solution to various social and economic challenges affecting them (Ridley-Duff & Bull, 2011, pp.101). The environmental management bodies should particularly put in the picture the potential danger that particular double-line initiatives might have on the surroundings. Credibility of the double-line venture The organization should employ relevant assessment tools to evaluate the credibility and trustworthiness of the program outcomes. It should particularly examine the risk factors that might compromise the credibility of the outcomes to third parties. Risk factors represent the dangers or risks in implementing individual social causes. The third parties might include public policy, academic, and social science professionals and communities. In general, the purpose and function of each social cause will depend on the inherent social problems affecting locals (Ridley-Duff & Bull, 2011, pp.91). Weak analytical tests, failure to articulate significant assumptions and scantily specified impact value chain can potentially hamper credibility of the double-line venture. Impact value chain The organization should take into account the impact of each initiative and possible avenues to improving the welfare of the people despite the copious social and economic challenges. The impact value chain is integral to the analysis of potential benefits of individual social causes undertaken in light of the existing conditions (Doherty et al., 2009, pp.107). For instance, the business venture will have to consider availability and accessibility of resources essential to effectively implement a double-line program. Capital assets, money, and staff time are vital resources for implementing the venture and general organizational initiatives both in the short term and the long-term (Gidron & Hasenfeld, 2012, pp.63). Outputs, on the other hand, include indicators and virtually all measurable variables that management can measure directly. These indicators are ostensibly derived from various operations of the organization. Meanwhile, the social outcomes entail changes in the standards of living of the local communities due to double-line venture. Outcomes might also include specific changes in behaviors, status, attitudes, skills, or knowledge of the locals as a result of social causes and other activities of the organization. For instance, construction of social amenities in the area might significantly change the attitude of the locals toward the management, employees or even activities of the organization (Bygrave & Zacharakis 2010, p. 427). Similarly, the organization’s initiatives that aim to reduce emissions (by a certain level/amount) into the surroundings might change or transform perception of the locals about environmental conservation efforts. Similarly, the organization should evaluate the impact of its enterprise activities, as well as the potential outcomes for lack of venturing into the social causes and other business activities (Kaul & Conceição, 2006, pp.33). Since the business venture is typically for-profit organization, the primary goal should be to evaluate whether the outcomes enhance or hamper projected revenues. It should also determine ways of resolving technical drawbacks of the impact relative to desired goals. Moreover, the business venture should consider the applicability of the social causes to lifecycle stages (Bygrave & Zacharakis 2010, p. 455). The organization should be capable of implementing the social and economic initiatives in stages to avoid hindrance or interference with its day-to-day operations. Feasibility of the double-line venture Feasibility shows the approximate costs and timing of all expenditures toward implementing a double-line venture. The business enterprise should conduct feasibility study to determine the practicality of engaging in particular social causes for the welfare of local communities (Ridley-Duff & Bull, 2011, pp.13). For instance, the organization should assess the cost and time (duration) for implementing a particular social initiative relative to another initiative. Feasibility is also crucial for determining the time breakdown – estimates of time required to implement the double-line venture fully. The enterprise should further apply its business planning tool to help improve the performance of its social enterprise and initiatives (Ridley-Duff & Bull, 2011, pp.31). In addition, the business venture could utilize market-based solutions to generate revenue, achieve its social missions, and address community needs. The business enterprise should further review the double-line to assess successes of the program and potential challenges after a period of three years. It is important to reiterate that social causes are part of the nonprofit operations whose primary purpose is to help improve the social welfare of communities (Bangs & Davis 2015, pp. 75). Finally, the business venture should assess its track record in providing financial and technical assistance to individuals and small businesses in the region. The organization active participation in providing financial support and other forms of assistance to people and enterprises will be vital for gauging its capacity to make substantial contribution to the area, as well as to change lives of residents. Past contributions also add to its experience as a socially responsible business enterprise. Like other social enterprises, the organization should employ double-line program to tackle various social problems, improve people’s life chances, communities, and the environment (Bangs & Davis 2015, pp. 103). It should also apply different commercial strategies to foster improvements in environmental and human well-being. Although the enterprise sells most commodities in the open market, it should focus on reinvesting profits back into the local community. The business venture should have a coherent social and environmental mission, generate most of its income through trade, reinvest the bigger portion of its profits, and always transparent and accountable (Bangs & Davis 2015, pp. 61). By investing in social programs, the business venture would appreciate the copious challenges associated with the launch and running of social enterprises. Ordinarily, most organizations find it difficult to bring their businesses to profitability. Accordingly, it is arguably harder to run for-profit organization as a social enterprise. Most of these ventures lack sufficient funds to run their social initiatives/programs comfortably and ultimately pursue their social mission. In most cases, they shoulder the huge burden of loss-making typical of startup businesses and social enterprises (Bangs & Davis 2015, pp. 82). Resources for social programs (nonprofit initiatives) such as time, money, and staff are ostensibly strained to almost the breaking point, just keeping the programs afloat. However, the business venture will eventually emerge as an entrancing alternative to the arguably endless search for private grants and public contracts. Incidentally, it brings together the money-making savvy typical of virtually all for-profit enterprises and the social-mission zeal of nonprofit organizations (Nicholls, 2006, pp.53). The venture also brings together the social service goals associated with the public sector. Despite the numerous risks and potential challenges, the business enterprise will continue to capture the imagination of nonprofits and funders alike. Advancing the venture and potential challenges The primary motivation for the business enterprise to embrace social programs is the inherent goal to promote its charitable missions. Technical assistance organizations, funders, experts, private consultants, and regular conferences will help the business venture achieve its social programs, including education support and promoting funding opportunities. However, the venture will face difficulties accessing adequate revenues to carry out its social mission. For instance, most funders would be reluctant to offer financial services to virtually all business ventures whose primary aim is to improve the social welfare of local communities or economies (Nicholls, 2006, pp.79). Conclusion The double-line venture should aim at creating a new socially valuable product or service that will ultimately address the aforementioned challenges. In addition, the business venture, through its Double-Line program (Second Bottom Line), is committed to measuring performance in relation to potential positive impacts on local communities. It also uses the power of business to bring about environmental and social change through various social enterprises and initiatives. The social program seeks to create good relations between the business venture and the locals. Even though the business venture is a type of for-profit enterprise, it is also focused on supporting and improving the welfare of the locals, as well as venturing into social enterprises. Part of the strategic management objectives of the company is to uphold social responsibilities. Social responsibility will help the company sustain its profits in the long term. Incidentally, sustainability is part of the conventional management theory. The venture looks forward to generating profits essential for infrastructural growth and development. The current business environment is dynamic and is characterized by numerous challenges. In this regard, a business venture should have a well-outlined strategy so as to cope with the existing competition and demands. The venture should further assess the response of workers, customers and other key players in the market before fully investing in social programs and social enterprise in entirety. It should further review strategies and avenues that would help boost its returns in the wake of huge expenditures on social enterprise and other activities that mainly aim to improve standards of living of the communities in the area. Furthermore, the venture should examine the current and future market prospects to avoid gratuitous financial setbacks. Similarly, it should sensitize the local communities about the benefits of investing in practices or activities, which do not hamper efforts to conserve the environment. It is worth noting that in order to succeed, an entrepreneurship venture must ensure a coherent social environment. By investing in social programs, the business venture would appreciate the copious challenges associated with the launch and running of social enterprises hence a successful venture. References Bangs, R., & Davis, L. E. (2015). Race and Social Problems Restructuring Inequality. New York, NY, Springer New York. Bygrave, W. D., & Zacharakis, A. (2010). The portable MBA in entrepreneurship. Hoboken, N.J., Wiley. Cordes, J. J., & Steuerle, C. E. (2009). Nonprofits & business. Washington, DC, Urban Institute Press. Doherty, B., & Thompson, J. (2006). Social enterprise management. Bradford, England, Emerald Group Pub. http://site.ebrary.com/id/10132679. Doherty, B., Foster, G., Mason, C., Meehan, J., Meehan, K., & Rotheroe, N. (2009). Management for Social Enterprise. London, Sage Publications. Gidron, B., & Hasenfeld, Y. (2012). Social enterprises: an organizational perspective. Houndmills, Basingstoke, Hampshire, Palgrave Macmillan. Kaul, I., & Conceição, P. (2006). The new public finance: Responding to global challenges. New York: Oxford University Press. Nicholls, A. (2006). Social Entrepreneurship New Models of Sustainable Social Change. Oxford, OUP Oxford. http://public.eblib.com/choice/publicfullrecord.aspx?p=834770. Phillips, J. J., & Phillips, P. P. (2011). The consultants scorecard: tracking ROI and bottom-line impact of consulting projects. New York, McGraw-Hill. Plummer, J. (2011). A fresh look for social enterprise. Third Sector, (683), 20. Retrieved from http://search.proquest.com/docview/910025786?accountid=45049 Price, M. (2009). Social enterprise: what it is and why it matters. Fflan. Ridley-Duff, R., & Bull, M. (2011). Understanding social enterprise: theory & practice. London, SAGE. Volkmann, C. K., Tokarski, K. O., & Ernst, K. (2012). Social entrepreneurship and social business: an introduction and discussion with case studies. Wiesbaden, Gabler. Read More