Social Ventures and Sustainability

October 2025

SOCIAL VENTURES AND SUSTAINABILITY

Peter K. Punwani

Do you have a passion for uplifting communities by solving systemic social or cultural issues? If so, you may want to consider starting a Social Venture. Social ventures serve a variety of causes such as helping impoverished or marginalized communities, reducing pollution, supporting the arts, etc. But beyond a meaningful cause, a key to success is determining how you will make your venture financially sustainable.

In that context, you essentially can setup your social venture in one of three ways - as a nonprofit, or a for-profit or a hybrid type of organization.

Nonprofit social ventures typically are led by a founder focused on tackling a specific social challenge. They rely on volunteers, donors, grants and fundraising for generating revenues. They have a different legal and financial structure than for-profit organizations, and are granted exemptions for paying taxes. Their donors get tax deductions. Smaller non-profits sometimes struggle to define the impact that they have for their communities. To be sustainable over the long haul, they need to grow and develop a brand-name to be able to consistently attract revenues. An example of a nonprofit is Seeds of Literacy, which helps adults overcome the cycle of poverty through free, personalized education. 

For-Profit social ventures are structured similar to traditional for-profit enterprises. They have a dual mandate for generating profits and achieving a significant social, cultural or environmental impact. Their success is measured through financial performance as well as the creation of social value. Here, sustainability does not depend on donors and grants, and finances can be better forecasted and planned, based on the organization’s products and services, which are geared towards generating profits. An example is Ben & Jerry’s. They manufacture a variety of ice creams and frozen desserts, while donating a portion of their profits to a wide range of causes such as homelessness, fair trade and GMO-free products.

Hybrid social ventures straddle both for-profit and nonprofit objectives. Such enterprises in addition to commercial activities, also conduct charitable activities to have a positive impact on society. Sometimes, the two objectives may require two separate subsidiaries (one for-profit and one nonprofit) working in coordination with each other under a parent corporation. However multiple legal entity options are possible. Sustainability comes through the for-profit element of the enterprise while supporting social causes. A good Cleveland example is Edwins Leadership and Restaurant Institute. It provides award-winning French cuisine and top-tier table service combined with a unique social cause - giving formerly incarcerated individuals a foundation in the hospitality industry. 

So, whatever your inspiration as an entrepreneur to make the world a better place, you have a variety of options to make your social venture a success!

Mr. Peter K. Punwani holds a M.S. degree in Industrial Engineering from CSU. Over a period of 35 years, he has led management consulting practices at Pricewaterhouse Coopers, Infosys and Computer Sciences Corporation, along with founding two for-profit ventures. Peter has helped over 40 Fortune 500 companies in improving bottom-line results through large business transformation programs in supply chain, financial systems, operations excellence and technology management. He has served as an executive coach and mentor to several clients and consultants, and has been a frequent speaker at industry conferences.

As a board member with Social Venture Partners, he has assisted several NE Ohio nonprofits in improving their social impact and sustainability. He also serves as a mentor with College Now.