Non-profit organizations and social enterprises that wish to design sustainability strategies need to have clarity around the concepts of income generation and profit, and how to achieve them.

This article aims to debunk some misconceptions around income generation, equity investments, loan finance, and the profits or surpluses that these organizations may generate or receive.

It explains that income and profit emerges from how an organization transacts with its customers. This approach will require organizations to learn new skills, practice new habits and adopt a different mindset. Although embarking on this process may feel intimidating at first, the benefits of being in a stronger strategic and financial position should make it worthwhile.

Every December I reflect on the trends among social enterprises in South Africa. I find this exercise very valuable. This year I’ve decided to share my reflection with you.

Here are the top 10 interesting issues or trends I’ve observed in 2016. Note that this is a personal reflection of my experiences; not an unbiased and objective analysis of the sector.

Many social entrepreneurs are starting out on their journey to change the world, and considering registering an organization. However, there is a drastic shortage of practical information on the type of legal form they should choose for their social enterprise.

This article from February 2016 aims to clear up some of this confusion.

It discusses the pros and cons of the various legal forms available to social enterprises in South Africa. It shows how much opportunity there is and helps to dispel some misconceptions. It encourages social entrepreneurs to launch a brand and immerse themselves in their work. The best legal form for their social enterprise will emerge; in cannot always be determined upfront.

This article was commissioned by the Red Bull Amaphiko programme in 2015. It highlights the considerable need for social entrepreneurs in South Africa. It discusses the various challenge and opportunities facing these social entrepreneurs. It also quotes some well-known leaders in the sector such as Pat Pillay from LifeCo UnLtd and Francois Bonnici from the Bertha Centre for Social Innovation and Entrepreneurship.

Even though South Africa’s social enterprise market is relatively young, the potential of using social enterprises to channel procurement spend to have a powerful social impact should act as a source of real hope for all of us. In this article I discuss how corporates can unlock this potential and overlay their existing procurement processes with a deeper sense of responsibility. I also discuss the value of committing to a more careful selection of suppliers.

This article was published in the Impact Magazine in October 2014 which was released at a conference on enterprise development.

‘Scaling social impact’ is an increasingly popular concept, but what does it mean and is it achievable in CSI? How can CSI programmes balance tight budgets with achieving audacious outcomes? In this article I discuss when it is appropriate for a CSI department to consider scaling its social impact and provides some suggestions on how to achieve this.

This article was published in the Corporate Social Investment Handbook (2014) by Trialogue Publications.

Social innovation is not a magic pill, but a process. Making a social innovation work is not simple. But when it does, it might be tempting to believe you can just duplicate the process again and again and it will keep working. But it’s not that simple. Let’s look at the reality of scaling, and some crucial questions you need to ask before trying. In this article I discuss the reality of scaling social innovation.

This article was published in the May 2014 edition of Inside Out – the magazine of the Bertha Centre for Social Innovation and Entrepreneurship.

All non-profit organizations have governance structures. In some organizations these structures are a source of insight, leadership and inspiration. In others they are a source of ineffectiveness, frustration and conflict.

This article from July 2013 presents the three primary roles of these governance structures (e.g. govern strategically, govern responsibly and manage compliance), as well as the key factors that correlate with the effectiveness of these structures. This article challenges the conventional view that boards should focus on compliance, and that this increases social and financial performance.

Imagine it’s 1946 and World War 2 has just ended. Both Japanese and allied forces have withdrawn from many small Pacific Islands. Military aircraft no longer drop supplies to their soldiers on remote islands, and the flow of goods to natives has ended. Local shamans have inspired their followers to build “pretend” airfields, control towers, and straw soldiers. Some of the more inspired local leaders have dressed their followers in imitation uniforms and now parade the fake soldiers on runways. A cargo cult has been established in an effort to trick airplanes to land and drop supplies. This is ritual mimicry married to a poor understanding of what is really going on.

It is no surprise that most strategic planning processes closely resemble cargo cults and these misunderstood rituals tend to be unsuccessful and provide little value to companies. In this article from June 2012, Dr Roger Stewart and I discuss both the failure of strategy and what organizations can do to improve their strategies.

The non-profit sector in South Africa has changed beyond recognition over the past decade. This is as I both hoped and feared. It is as I had hoped because young people, new ideas and a fresh energy have entered this sector. It is as I had feared because a number of established organizations with rich histories have failed to adapt in time and have subsequently suffered severely – some have even been fatally wounded. Overall, it feels that springtime may have arisen after a long winter.

Here is my personal story from June 2012 to help illustrate this change in seasons.