Importance of a Business Model to a Social Enterprise

Importance of a Business Model to a Social Enterprise

Absence of a business model for the largest volunteer ambulance service for the world

The topic of this week’s course is a topic I hold very close to my heart, probably one of the reasons why I left a career employment for pursuing graduate studies.

Coming from a developing country on top of formerly being a social sector worker and having witnessed many social initiatives funded by the government and international development agencies at all phases of project life cycle. My learning output has always been on the lack of sustainability. At a time when Pakistan is witnessing a steady increase in per capita income and growing commercialization, it becomes very difficult to keep social initiatives solely on the shoulders of the state.

At the same time, I have been a part of uncountable discussions over whether or not social initiatives should make profits or not. I have mostly inclined with the side that’s forbids profit from the poor. I think my grounding of this concept is because of an inspiring personality known by the name of Abdul Sattar Edhi, the founder and chairman of the largest volunteer ambulance service in the world, EDHI Foundation. The foundation has expanded its operations in numerous areas over the years including shelter homes, air ambulances, burial services, welfare centers, disaster relief, international community centers etc. I have read a lot about him including his biography and numerous interviews.

He is often faced with the question concerning the sustainability of a complete charity / donations backed operations and his reply has always been emotional but not rational. His argument ends with his emotional statement that the foundation started with one ambulance in 1950s and now covers numerous countries with the same model. He is also adamant to make the foundation make profit margins for sustainable operations.

Taking this class and familiarizing myself with the social ventures, I feel that Mr. Edhi has done a marvelous job in operating his organization and bringing it to where it stands right now. He has been instrumental in leading through example and his personal charisma. But the foundation really needs to adopt a better business model than the one which it has followed till now. The plight of perceiving revenue sources from social good nearly as immoral is something that should be confronted in our society and people be made aware of. A clear vision for making Edhi foundation adopt this philosophy is going to benefit all the people who are being served by them. I cannot imagine the magnitude of problems that will pop-up for the millions of beneficiaries of Edhi foundation if the operational sustainability of the foundation dives.

I have always curious inquires wherever I have travelled on similar business models or some public-private partnership model so that I can somehow communicate to the foundation. I feel that my capacity to answer such is getting better.