Business Case Studies & Business Publications

Impact Makers

Werhane, Patricia ...

Case

Impact Makers

Werhane, Patricia H.; Hess, Edward D.; Mead, Jenny

E-0342 | Published January 21, 2009 | 27 pages Case

Collection: Darden School of Business

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Michael Pirron was a health care services consultant who had always dreamed of starting a "Nonprofit Competitive Business" with a social mission. In 2006, he launched Impact Makers, a new hybrid entity that crossed the nonprofit/for-profit lines. Although it was a small business like many others (paying competitive salaries, bidding for work, providing professional services at market prices), Impact Makers had several unique components: It would contribute strategic consulting, and all profits, to charitable community organizations; there was no stock and equity ownership; it had a volunteer board of directors and its financial information was open to the public. The first two years saw some successes and some setbacks. Impact Makers faced the challenges of growth: how to get more customers, more revenue, and a more predictable revenue stream. How would Impact Makers raise investment capital with its unique organizational structure? And how would the company survive?

1) Examine the creation, development, and attributes of a unique hybrid for-profit/nonprofit "social enterprise" business model. 2) Challenge students' notion that a small business must "grow or die." 3) Examine the conflict between a nonprofit mentality and the capitalist mentality? Is there an inherent conflict? 4) How do you make this business model sustainable?