Product Overview

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?

Learning Objectives

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?