Homeboy's Financial Plight

Social entrepreneurship often takes on many different forms. In my hometown of Los Angeles Homeboy Industries is taking a social justice approach to tackle high re-incarceration rates in the city. Homeboy serves as a rehabilitation program for formerly incarcerated men and women that seek to reintegrate themselves into society through services like tattoo removal, anger management, and job training at Homeboy’s various enterprises. Through Homeboy’s café, bakery, food truck, and silk screen apparel shop the company employs and trains people over an 18-month period. Participants then reenter the workforce with increased confidence and practical vocational skills that assist them in finding and keeping a job. The revenue that is made from these enterprises is then used to support the free social services offered by the company. However, the work Homeboy has been able to accomplish comes at a price. The business itself is suffering a budget deficit of $1 million dollars. Homeboy doesn’t want to sacrifice any of the social services it offers its community, but it is having financial trouble doing so. The money that is made from its various social enterprises is not enough to supplement the cost of the services offered by the company.[1] Homeboy’s financial plight is not new for non-profit social ventures, but Homeboy has an opportunity to capitalize on its success.

Homeboy’s services have worked in quelling increased violence in the city and they have the support of various government officials who constantly praise the effectivity of the program. Homeboy addresses the severe need in Los Angeles County to reintegrate previously incarcerated people into the workforce. Previously incarcerated people have a 2/3 chance of reentering jail in their lifetime.[2] Homeboy’s impact has been recognized by the County of Los Angeles, with the assistant police chief saying he “shuddered” at the thought of Los Angeles without Homeboy. In the last year gang-related crime has fallen by 18% in Los Angeles. It isn’t clear if Homeboy’s efforts are solely responsible for the drop, but government officials say it is a large contributing factor.[3] The city doesn’t hesitate in using their services either. The city has had a history of busing juveniles in detention to Homeboy on the days that they offer free tattoo removals. [4]

Expanding their existing brand would help diminish Homeboy’s costs and allow them to continue providing necessary social services to their community. Relying on donations and government funds doesn’t promote sustainability and if Homeboy wants to continue making an impact, then sustainability should be one of their main concerns. Successful social ventures like Homeboy should focus more of their efforts on their profit making enterprises so they can maintain a level of independence to keep on doing what makes them great.

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[1] Lopez, Steve. "Homeboy Industries Is a Struggling Success Story." Los Angeles Times. Los Angeles Times, 26 Jan. 2014. Web. 5 July 2015

[2] "Recidivism." National Institute of Justice. Office of Justice Programs, 17 June 2014. Web. 5 July 2015.

[3] Lopez, Steve. "Homeboy Industries Is a Struggling Success Story."

[4] Lopez, Steve. "Homeboy Industries Is a Struggling Success Story."