SVP University – Value Creation

I recently attended a presentation of University of Rhode Island (URI) student authored  social enterprise business plans.  Social enterprise businesses are mssion-related enterprises owned and operated by nonprofits with the goal of creating jobs/ training opportunities, and/or developing a stream of revenue for the organizations. The URI student teams, along with teams from Brown, and Johnson and Wales are part of the SVPRI University program and are competing for a $5000 prize which will be awarded to the nonprofit that worked with the winning student team. 

Nonprofit Social Enterprises

 The presented plans were interesting and well developed.  I am always surprised and inspired by the spectrum of creative social enterprise ideas.  I am also impressed with the caliber of work I have seen students contribute to nonprofits.  The business plans presented included:  the House of Hope Community Development Center’s House of Hope Boutique Originals (HOHBO) proposal to employ the women residing in their shelter to produce hand-crafted tote bags using recycled green material; an innovatively packaged granola called Urban Survival Food for the Wiley Center, a community organizing group that aims to access the snack food distribution market (sales in vending machines,at sporting events and in movie theatres); a Doggie resort, that allows vacationers to Rhode Island beaches an alternative to leaving their dogs at home, to be owned and operated by the Animal
Rescue League; a property management company that would be a for-profit subsidiary of Crossroads RI, and a Baked Potato Restaurant, that differentiates itself by offering inexpensive, healthy, local foods, which would become a revenue generator for  the Trudeau Center.

Leveraging Impact

As the students presented their business plans to the representatives of the nonprofit clients who were seated around the round table, I started thinking about the value creation resulting from this SVPRI program.  SVP University’s impacts go far beyond the $5000 investment toward the implementation of the best business plan.  This investment is leveraged in ways that are difficult to quantify. SVP University facilitates pro bono talent, helps nonprofits help themselves, and builds the next generation of philanthropists.  The students, the nonprofits and the community are all winners in this collaboration.  What could be better?

Pro bono talent: student consultants and SVP judges

The SVP University program has played a role in encouraging local universities to implement a practical business plan exercise into their social enterprise curricula.  By working with nonprofits, the students are acting as pro bono consultants providing time and expertise to develop business plans, an exercise the nonprofits may not otherwise have been able to afford.  SVP partners use their business expertise to provide feedback on the student authored business plans and chose and invest in the one they believe is most feasible. 

Helping Nonprofits Determine if a Social Enterprise is Feasible

The student created business plans can help the organization determine the feasibility of their proposed revenue generating enterprise.  Not all social enterprise ideas are feasible and the determination that a business venture should not be launched is a valuable deliverable.  A decision to avoid implementing an unfeasible business, saves money and avoids reputation risk. 

Helping Nonprofits Help Themselves

If determined feasible, it is difficult to quantify the value provided to a nonprofit in helping them develop their own revenue generating enterprise.  A successful mission-related enterprise enhances the organizations impact and provides the organization with the possibility of long-term independence and sustainability.  Research has also indicated that when nonprofits launch businesses they often experience a host of other overall organizational benefits including increased efficiency, and enhanced reputation. 

Building the Next Generation of Philanthropists and Social Entrepreneurs

Contributing to a social cause and social enterprise seems to be a bit like traveling. For most, once you get a taste of it you want more.  Exposing students to the possibility of using their business skills for something more than simply maximizing the bottom line (although that is important too!)  is often a new and welcome concept.  I have seen these initial experiences lead to decisions to sit on nonprofit boards, continue volunteer engagements, become active and engaged donors, career changes and decisions to launch new socially-oriented organizations.  In general, exposing students to social innovation ideas and the feeling that their contributions can make a real difference in the lives of others increase the odds that they will become active and life long contributors to society.

In closing,it is easy to see that the $5000 SVP University business plan prize is one of the best societal investments I can imagine.