Developing a Social Enterprise

Developing a Social Enterprise

Creating Value

Customer Segments

One of the profound issues hounding the country is the growing trend in homelessness and poor families. In part, this may be attributed to the misguided policies and harsh economic performances over the past two decades.

Nonetheless, it is estimated that half a million people go homeless in a single night in the United States of America. It means that approximately 65% of the population is found within shelters while the rest are located in the streets (Family Promise). The statistics indicate that nearly 51% of homeless children are under the age of six, which means that 1 in 30 children experience homelessness annually. The statistics, in turn, affect the level of poverty in America.

Worse still, nearly 40 million people in the United States live below the poverty line (FRAC 1). Poverty, as a result, affects almost 12.9% of women and 10.6% of men who work minimum wage, affecting both those who live in the rural and urban areas in the country (Poverty USA). More than 1 in 5 (15 million) children live under the poverty line (Family Promise). Only 25% of this population is eligible for Federal housing, which grapples with financing. This means that for every 100 extremely low-income households, there are 37 affordable rentals available in the market (Family Promise). These statistics may indicate that increased homelessness means that individuals are no longer employed, lack basic needs, including food and shelter, and face extreme hardships.

On the other hand, the poor are unable to sustain daily requirements for human rights privileges. In a report by the Food Research and Action Center, social determinants such as social, economic, physical, and other conditions affect how people acquire their basic needs (1). Concerning food and nutrition, needy and homeless individuals struggle with the resource-related acquisition for food and water. As a result, this contributes to poor diet, health, and disease management.

Value Proposition

Given the circumstances of those living below the poverty line, addressing this social issue has inspired the generation of a social enterprise. The social enterprise proposition is setting up a social supermarket. The concept is borrowed from a standard supermarket. A supermarket is a large retail self-service shop that sells foods and household items. Appropriating from this concept, the social enterprise idea is to set up a supermarket that offers a wide range of products for the homeless and poor families. Given that with the increase in poverty, unemployment, and lack of housing, it is essential to provide one of the basic needs that is essential to any human being: proper nutrition and food accessibility.  The enterprise seeks to target an area that is quarantined to be populated with both the target market: the poor and the homeless.

The social supermarket brand name proposition is Hope Shop. The vision of the supermarket is to provide cheap and affordable food and drink products at a discounted price. The mission is to ensure that each individual within the neighborhood has improved health and nutrition access. According to FRAC, the need to provide access to proper nutrition and drink allows those living under the poverty line and those who are homeless to improve their overall health outcomes- which is reported to be a problem among such communities (2). Therefore, the goal of the brand is to provide a dignified element for the people who are using the service to sustain their livelihoods. Additionally, the shop will ensure that an individual or a family can support themselves per week, given that they can afford to purchase the products from the community supermarket.

The need to provide access to nutrition and food accessibility is a social determinant that will improve the living and health standards of the target market. Those living under the poverty line, as well as those who are homeless, cannot account for their health and nutritional quotient requirements. According to the study done by the Food Research and Action Centre (FRAC), reports on people living or near poverty have disproportionate worse health outcomes and have considerably less access to health care (1). Neighborhoods that have poor and homeless individuals have fewer resources that ought to promote healthful living standards, especially health. These include full-service grocery and stores offering affordable and nutritious foods. FRAC documents that children who grow up poor or homeless are more likely to experience good insecurities. Health-related issues such as obesity, substance abuse addiction, including tobacco exposure, lead exposure, poor oral health, and poor growth, among others (1). As for adults, there are more significant risks of health issues, including heart diseases, stroke, and obesity. It is, therefore, necessary to find a solution to the social problem with specificity to food and nutritious access.

The social supermarket’s vision is to provide food and nutrition access to those living in neighborhoods determined to be for the poor and homeless. The provision will encompass the provision of a wide range of food and drink products all-under-one-roof. This might range from bread to cheese to fruits and vegetables. The social supermarket shall resemble the average supermarket, which entails isles and price tags. In this case, there shall be a food provision center which shall be set-up different from the supermarket. This is to provide food for those who cannot afford a meal, including the homeless. The two outlets shall be housed under one roof but in different sections. Access to the supermarket shall be different from the food court. The value-provision for this is to ensure that those families or individuals living under the poverty line can be provided with discounted and affordable food products.

On the other, individuals housed under shelters and those without shelter can access a meal at least one meal a day. The social impact is to reduce any cases of hunger and starvation, which has been reported to be on the rise as a result of a lack of access to proper food and water (FRAC 2). This mostly affects children under the age of 18 years who do not have access to adequate nutrition. From a society’s perspective, a healthy nation is built on good standards of a healthy population. This eventually may facilitate further social entrepreneurs who may want to venture into skill and knowledge training for those living under the poverty line or are homeless. Therefore, the value that this social supermarket creates is to ensure a self-sustaining project that can also fund the meal provision for the destitute. Those who can afford to purchase the products from the supermarket can feed those who cannot.

Channels

The valuation of the enterprise is likely to be higher, given the vision and mission of the social supermarket. Currently, the value estimate is at $ 100, 000, which is high, considering that the discounted prices for the products will be acquired directly from the manufacturer or distributor. In an attempt to ensure minimal cost incentives, the proposed channel of acquisition is through partnering with existing stores. By using the social corporate responsibility concept, the social enterprise may take a profound business approach. The proposition is to approach stores such as Walgreens and Walmart, which have extensive reach on products and services. By providing an alternative route for any of their rejected produce for fruits and vegetables as well as food products and drinks, the supermarket shall be the charitable entity for such stores.

To approach such entities, there might need to have a conduit in doing so. Approaching the current Community Shop charity organization will be the best idea (Rayner). In this, the supermarket might have the right partner in ensuring that the produce from the larger supermarkets is purchased on discounted prices on behalf of the target market. Approaching them via e-mail and phone calls might be the best option. The managers of each store will be contacted and given the best choice in disposing of the products that they can offer.

Customer Relationship

Interaction with the customers is crucial to how the enterprise succeeds. The main goal is to ensure that there is a dignified environment from which the customers feel welcomed and not ashamed to purchase products in the supermarket. To do so, the proposed hiring of a manager who will oversee the running of the shop will be required. The manager will oversee the purchase of the products and equal distribution between the two sections: the shop and the food court. Additional hiring of attendees will be required. It will entail the training of such individuals on how to service the needs of the customers without making them feel ashamed of what they are doing. With the need to alleviate poverty, the proposed employment tactic is to hire among the target market. Open hiring will be the protocol in the sections. The potential employees will be vetted, and their credentials verified. From then, they will be trained on how to handle the clients, stock the isles, and process discounted products at the point-of-sale. The customers will have to go through an automated system where the purchase is made by them but, they can be helped if they wanted. For the seniors, the trained employees shall be conducting a self-service aid for them, including delivering the products to the seniors’ residence within a given radius from the shop.

For the food court, the hiring basis shall be both on a voluntary and professional basis. Given that food that is cooked shall be served, it is paramount that those being hired should have a background in hospitality or culinary skills and knowledge. Sanitary conditions shall also be emphasized, which can only be achieved if the individual within the food court maintains such standards. Given the provision under the State, the food court needs to ensure a food-grade mark of B and C, which is necessary to acquire the permit to provide food for the community. Servers shall also be trained on how to handle the crowd; for instance, it should be emphasized that the crowd be divided into men, women, and children. Children are given priority in this food court. Hence, by ensuring that each group is catered for, the meals provided shall be at least twice in a day.

Delivering Value

Key Resources

For this business to be successful, the acquisition of a premise that will house both the food court and the supermarket will be necessary. The reprieve for the business is that given the tax exemptions provided by the State in the provision of essential social resources for the homeless or the poor, there will be limited tax payments. The acquisition shall be made through charity-based donations that seek to target corporations such as in the housing sector or the State government.

Another essential resource is the provision of employees who shall be hired every week. The rate of hiring shall be $ 7.25 per hour for five hours a day (Family Promise). They will be trained thoroughly on how to handle the products in the supermarket as well as the food court.

The ultimate resource is technological. Given that the supermarket will require a lot of technological back-ups, there is a need to invest in this. It will encompass automated systems, coolers, and lighting systems for the produce.

Capturing Value

The enterprise seeks to capture revenue streams in multiple facets. The first includes partnering with the Community Shop charity entity (Rayner). This is an entity that has existed for more than ten years and understands the policies, framework, structures, and operations of charity projects such as this one. Having such mentorship and financial backing will be crucial to how well the social enterprise thrives. Additionally, the support of the charity will expose the supermarket and food court to charitable entities willing to sponsor the project.

Another approach is the partnership with big stores such as Walgreens and Walmart. Such entities are pivotal to the cause of corporate social responsibility. Given the rise in homelessness and poverty, the need to provide such resources at discounted prices might be beneficial for them as well. The donations given from the charitable organization shall be used in part to purchase some of the products from the manufacturers or distributors after getting into an agreement on the whole concept of the project.

The final approach is to use the money gained from the supermarket as a revenue stream. In this, the discounted products shall earn a profit for the enterprise. These proceeds shall either e used for the purchase of products or the payment of the employees provided that the profits cater to the services and operational costs of the project. Accounting strategies shall be used in this case and will be provided under the partnership with the Community Shop charity entity (Rayner). By ensuring there is a balance of accounting books, it shall stay in line with the State requirements of indicating financial records.

Conclusion

The growing epidemic of homelessness and poverty in the country has gained a lot of attention in the recent past. From a social enterprise perspective, this is achieved through the provision of a social supermarket as proposed in this report. A social supermarket will be the best avenue to ensure that the communities’ access to food and nutrition is provided. To ensure this, the social enterprise seeks to offer such products through discounted and lower prices compared to those found in mainstream profit-making businesses. Partnering with companies such as Walgreens and Walmart alongside Community Shop charity organizations will provide a steady revenue stream as well as products for the target market. Additionally, the hiring of individuals will be necessary to ensure that the provision of employment is guaranteed for the community. Therefore, the overall objective of the social project is to ensure that food and nutrition access is provided for the community.

Work Cited

Family Promise. Homelessness/Poverty Fact Sheet. 2020. https://familypromise.org/homelessness-fact-sheet/

Poverty USA. The Population of Poverty USA. PovertyUsa.org. 2020. https://www.povertyusa.org/facts

FRAC. The Impact of Poverty, Food Insecurity, and Poor Nutrition on Health and Wellbeing. Food and Research and Action Center. 2017. https://frac.org/wp-content/uploads/hunger-health-impact-poverty-food-insecurity-health-well-being.pdf

Rayner, J. The Rise of Social Supermarkets: It’s Not About Selling Cheap Food, but Building Strong Communities. The Guardian, 2019. https://www.theguardian.com/society/2019/may/19/social-supermarkets-food-poverty-jay-rayner