The ENTREPRENEURSHIP encyclopedia

Seed Funding is typically provided by angel investors, friends and family, or other informal investors. It is called seed money because it is used to finance the initial stages of a startup's development, such as market research, product development, and initial marketing efforts.

Segmentation is a process of dividing your supporters into groups based on shared characteristics and past engagement. These groups then receive more personally tailored outreach and fundraising appeals during your campaign.

Share is a unit of ownership in an investment, such as a share of a stock or a mutual fund.

A person who has purchased (invested) shares of a business. This entitles them too have the right to vote on how the company is run, but also they are entitled to receive part of the company’s profits called a dividend.

Silent Partner is an alternative to venture capital, a silent partner is someone who is involved with a company largely for the purpose of providing capital. A silent partner is typically not involved in daily operations, but can play a role in providing big-picture guidance.

A business that is driven by making a difference to communities or the environment. The communities could be a community of interest or geographical community. As with all businesses, they will compete to deliver goods and services. The difference is that social purpose is at the very heart of what they do and profits they make are reinvested towards achieving that purpose.

A person who is the founder of a social business. Their main driver and reason for starting the business is to make a difference to a community and/or the environment, rather than ‘just’ making money

The difference that an organisation will make. This could be the improvement to beneficiaries and/or environment beyond. An example of this could be an improvement in wellbeing, reducing isolation, building a sense of community, reducing pollution or people getting fitter.

Money (or a loan) that needs to be repaid back to the investors. The money is there specifically to help the organisation with its social purpose and to do the good work. An example of this could be that by having some social investment, an organisation is able to grow their business, increase the amount of activities and therefore increase the number of beneficiaries and social impact.

It describes what it does and for who. This can also be called the mission statement.