This section introduces methods that enhance existing social enterprise operational models.
The Franchise Model enhances social enterprises by addressing common nonprofit challenges of replication and scale. Technically, any social enterprise that can be reproduced may be applied to the franchise model. Reproduction requires a viable social enterprise model with clear business and social parameters, which is applicable in different markets or across geographical regions. For this reason embedded social enterprises usually work best with the franchise model. Franchising enhances social enterprises by helping them achieve economies of scale and with it viability or profit, as well as enabling mass replication, and thus, increased breath of scale--geographical coverage--or depth of scale--volume of clients--and social impact.
The Private-Sector Partnership Model represents a mutually beneficial relationship between a for-profit company and a nonprofit social enterprise. Relationships are forged on commercial grounds, whereby each partner is a contributor to the commercial success of the venture. The partnership adds value or enhances the nonprofit social enterprise by increasing its viability, and hence its social impact, either directly by reaching more clients through its business model, or indirectly by generating funding for social programs. The private partner also benefits vis-à-vis improving goodwill, increasing customer loyalty, penetrating new markets, attracting more socially conscious consumers, etc., which subsequently translates into higher sales and more profit.