Types of Social Enterprise — Integrated Model

When operations and impact overlap slightly.

In a previous blog post we looked at the different types of social enterprise model, and this time we’re delving deeper into the integrated model.

The integrated model often sees a social enterprise’s income generating activity partly fund some of the social activities within the social enterprise. At the same time the business side of things will also directly contribute to other forms of social good. However the product or service they offer is unlikely to solve some sort social or environmental need.

One common integrated model is where the social enterprise sells one product, but charges a premium to one customer which ultimately subsidises the other.


Example 1 — Aravind Eye Care

This great example of a social enterprise in India identified the problem in rural villages where it was very hard for locals to access adequate eye care services. There was no provision for them locally, the nearest one could be hundreds of miles away and then there was the problem with affordability.

Aravind solved this by offering subsidised outreach services for the villagers, whilst charging those who could afford it an appropriate amount that would subsidise the outreach service. They went that bit further too by making sure the doctors working with clients saw both types, those in the towns and in the village, to avoid creating a two-tier service.

The model has enabled them to expand all over India, and further afield as they work with various African countries in establishing something similar there.


Example 2 — Vesta (Social Bite)

Social Bite are a pretty impressive outfit, running a variety of different projects that aim to eradicate homelessness in Scotland. As part of the charity, they run Vesta, formerly known as Home, a restaurant that offers delicious food and drinks whilst doing a whole lot of other good.

Customers are encouraged to pay-forward meals for the homeless, and this is where the integrated model comes into play. Running as a restaurant it serves customers day and night, and then when people opt to, they then feed their service users using the extra money.

On top of this, they also use the restaurant as a great way to provide training and employment to homeless individuals looking for a return to work. Due to the nature of the restaurant, and the social ethos behind it, getting back into a 9 to 5 is a lot easier when you know the management, colleague and customers have got your back and want you to succeed.


The integrated model absorbs your social or environmental goals into your social enterprise. Meanwhile, the model enables you to take some mainstream ideas and convert them appropriately, since unlike the embedded model, the service or product doesn’t have to directly solve the problem.

The difference between integrated and embedded models can sometimes be a bit blurry, especially as you may have to adapt your operations to keep competitive. Ultimately the point of understanding your model is to be able to explain it to stakeholders and demonstrate the impact you are having because of it.

Types of Social Enterprise — External Model

When your operations and impact don’t overlap

In a previous blog post we looked at the different types of social enterprise model, and this time we’re going to go one step further by discussing some examples of the external model.

The external model is very interesting because it actually means any business can jump straight into being a social enterprise without necessary having any social or environmental goals linked directly to their product or service.

This does not mean however that the company can have a negative effect on either. They should still meet all the other social enterprise requirements when it comes to governance, transparency, stakeholder involvement and employee satisfaction.

Moreover it usually means that while they are busy selling and maximising their profit, there will be another organisation focused on solving a need. The need doesn’t necessary have to be linked with the social enterprises main operation either, which has enabled the funding of hard-to-fund groups through this model.


Example 1 — Ginerosity

One example of the external model is Ginerosity, a gin distillery social enterprise based in Edinburgh, Scotland. They ultimately produce and sell delicious gin all over the world. What kind of social or environmental goals do you think ginmakers would have? Protect the juniper maybe, or create more gin-tasting tours?

Nothing like that. They partner with other social enterprises or nonprofits to finance and provide vulnerable young people the change to access education, training or jobs. The profit generated from the gin goes directly to this cause, which is why we call it an external model.

Example 2 — Thankyou

Another example is Thankyou, a social enterprise based in Australia who have now extended their operations to New Zealand too. This impressive social enterprise spends 100% of their profit on solving global issues and partners with the likes of Unicef and Oxfam.

However their products don’t directly target those causes like other social enterprises do, but instead there is an external connection between them. For example, they sell their own bottled water, from which the profits go towards water projects around the world. They sell their own line of nappies, the profits of which go to births and baby health all over the world.


These two examples of many external model social enterprises, go to show how no matter what you sell or offer, there is a way to be a social enterprise and have an amazing impact of society all over the world. Some people may argue that it would be hypocritical for certain sectors to operate in such a way and then claim to be having a positive impact.

We, on the other hand, believe that external models can provide a way for many companies to move into social enterprise, before aligning the rest of the operations accordingly.