Source 9: Advantages and Barriers of Social Entrepreneurship
Shortcut Navigation:
Change Text Size: A A A

Source 9: Advantages and Barriers of Social Entrepreneurship



  • Provides unrestricted earned income
  • Reduces reliance on traditional funding sources
  • Allows for financial self-sufficiency
  • Provides a better understanding of community needs
  • Offers more freedom to respond to community needs
  • Provides more flexibility in providing existing services
  • Broadens support for your organization
  • Expands your services to a larger constituency
  • Empowers clients to insist on better services, giving them a sense of dignity
  • Allows for increased and better use of financial resources
  • Enhances coordination between staff and board
  • Enhances credibility with other funders, clients, and caregivers
  • Sharpens organizational focus
  • Increases community impact
  • Improves research, planning, and marketing skills
  • Expands your most effective services
  • Stops or transfers weak or duplicative services
  • Adds new services that meet emerging or growing needs
  • Promotes continuous learning and improvement


  • Risk of losing your nonprofit status
  • Possibility that board, staff, volunteers, clients, and other stakeholders will oppose efforts to generate profit and/or charge for services
  • Time and money to start a new venture—both limited commodities for many nonprofits
  • Unrealized fear that generating revenue will reduce funding/contributions from other sources
  • Lack of financial support/discretionary funds for critical research and planning
  • Lack of business skills among current staff and limited resources to hire new staff
  • No quick return for the investment of money, time, and energy
  • Fear of financial disaster, damaged reputation, and compromised mission
  • Challenge of managing the possibility of rapid growth

want to sign up

Get the latest news on health, economic security, and advocacy for older adults.

Sign Up