|
What is the 70/30 principle?
The 70/30 principle is a Strategic methodology practiced
in-house consulting4London.
The justification of this Principle is derived from the concept of Social Enterprise
Sustainability.
Most social enterprises have adapted the
Social enterprise status purely because it is seen as the right thing to do or
current in vogue. Hence Voluntary sector policy is becoming less popular.
At this stage however it is necessary for
us to differentiate between a social enterprise and a Voluntary organization.
Social Enterprise
A social enterprise is a non-for profit
organization that is not totally reliant or dependent on Funding and Grants for
it’s sustenance.
Voluntary Organization
How ever Voluntary organizations have been
run and sustained with no contingency but alternate funding as solutions to
financial requirements.
Change And Development
Change has immemorially been a catalyst
that leads towards new results. Change
has undeniably been linked to Development and Improvement. Complacency has led
to down falls and diminishing of many great ventures.
The 3 stages of Development in any mature
society are always
- Dependence-Incapable of sustaining oneself mostly seen as an
infant stage
- Independence –The stage where situations make sense and
self-assertiveness pays off this is wher most young people or
organizations are classified. And
- Interdependence-A Level where maturity is deemed manifested, it
is a stage where although independence is desirable it is often sacrificed
for social integration and social responsibility.
From the above illustration one can see
where a Voluntary organization may fall in relation to economic development of
a community
The danger in this to Our Communities true
social objectives is that worthwhile projects could be ermined at any time
In this article I will not further expose
the damage this has caused through premature abortions of projections.
The 70/30 principles, is a simple strategic
plan that seeks to operate over a 10 year period.
The 1st 3years every
social enterprise should work towards at 30%of it’s income coming through trade
and business sources.
The next 7 years this should be
increased by up to another 40%, this would mean that social enterprises could
have up to 70% of their income coming in through trade and business sources.
The practicality of this is quite straight forward and the esteem for this new
generation of Entrepreneurs is immense.
(Culled from a live seminar conducted by
Sam Onigbanjo of Consulting4London)
For information and strategic mentoring on
Social Enterprises call Our offices on
0207 737 3251
|
