Creating Social Entrepreneurship through Social Purpose Vehicles (SoPVs)

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2 months agoopen0

The purpose of this proposal is to propose a new model for supporting social responsible entrepreneurship, a Social Purpose Vehicle (SoPV), that will employ focus vulnerable group (persons with disabilities, transgenders, tribal communities, etc).

At the core of the SoPV concept is a not-for-profit society formed by like-minded individuals who will create a corpus fund to support socially responsible small-scale entrepreneurship opportunities in areas like agriculture, packaging, woodwork, pottery, art, bag manufacturing, weaving ti create employment for vulnerable groups.

The society will mentor and financially support private entrepreneurs to set up small-scale business (an SoPV) in one of the identified area. The private entrepreneur, in turn, will be required to invest to his capacity and also train and employ a certain percentage of his workforce from a pool of identified vulnerable group: persons with disabilities, tribals, transgenders, etc. .

While the society will be a not-for-profit company, each SoPV will be a for-profit enterprise with the society as the majority partner and the private entrepreneur as the minority partner. However, the private entrepreneur will be given full management and operational control of the SoPV and the society will only act as an independent guide to provide necessary oversight in business operations and to protect the interests of special individuals.

The model will not only help develop local entrepreneurship but will also lead to local employment and employment of focus vulnerable groups, whoich would not have been possible otherwise. The profit share of the society from each SoPV can be ploughed back to add to the corpus fund.

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