Social Enterprise Trends for 2014

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    Earlier this month, the Stanford Social Enterprise Review published a brief article entitled “The Rise and Struggles of Social Enterprise in 2013.” Here are some of the highlights:


    • Program Related Investments. The IRS recently approved a regulation that makes it somewhat easier for foundations to make PRI investments in social enterprises.
    • Corporate Menu Grows. Legislation authorizing formation of corporate structures that support social enterprise development, including L3Cs, benefit corps, and flexible purpose corporations, was approved last year in Delaware, home to more than half of US publicly held firms. And B Corps, a set of internal policies rather than a corporate legal structure, but with similar social impacts, grew last year, now number more than 900 companies.
    • Social Impact Bonds have begun to gain some low-gear traction in a few places, including US Treasury’s formation of $300 million Innovation Fund to support SIBs.
    • While many foundation endowments have largely recovered from the Great Recession, local and state government funding has declined, reducing resources for many social enterprises with business models based on government partnerships.

    Good luck!