An Exploratory Study of Social Purpose Business Models in the United States

Abstract

A growing subset of nonprofit organizations in the United States are launching social purpose businesses (SPBs) that serve both as sources of additional revenues and locations for employment and job training for disadvantaged populations.This research note presents data from a study exploring SPB models for integrating business and social service technologies and organizational strategies for competing successfully in product and service markets while maintaining commitment to social goals. Data from a pilot study testing a survey instrument with a sample of 15 directors or managers of SPBs located in different regions of the United States show that slow growth, crosssubsidization, and diversification are key approaches to balancing commercial goals with social aims across a range of SPB organizational models. The relevance of these findings for future research on nonprofit social purpose enterprise is discussed.