Social entrepreneurship has existed for as long as there have been social problems needing responses and solutions. In recent years, new forms of business have been developed that respond to social and environmental challenges, and which combine aspects of non-profit organizations with others of for-profit companies. In this article we start by defining social entrepreneurship, which has specific characteristics and needs that are distinct from those of conventional entrepreneurship. This difference has enabled the development of a financing market specific to this field, which attempts to provide suitable responses to the different types of organizations operating therein. We then go on to look at the financing models available to social initiatives and the cases and situations that make some more appropriate than others.
Lluerna is a business plan developed by students from both the UOC's Executive MBA course and its MBA in Social Entrepreneurship course.
This work combines classical techniques from business schools with a more innovative approach related to impact-centred (rather than profit-centred) businesses. This business plan demonstrates that it is possible to run a sustainable company with a social objective, in this case the electrification of rural areas.
Furthermore, the plan shows a profitable business model that can be exported to many countries, where it is possible to create a market with a remarkable positive impact on a great number of families. Specifically, Lluerna is implemented in Bolivia, a country with an important lack of rural electrification, and where significant levels of collaboration from local actors in the area of rural electrification can be found.
Lluerna is also an example of how putting together new technologies and new commerce management tools makes it possible to generate a positive impact, even with a population that is normally considered too poor to be part of the market.