As Cambodia develops we are all aware that donor funds are becoming increasingly scarce; that ‘sustainability’ is key; that donors can sometimes limit autonomy and that exit strategy planning is required. This is why many traditional NGOs are looking at ways of generating their own revenues. Methods vary, as does the scale: ranging from small scale, in-house product production, to establishing significant businesses exporting globally. Cambodia has seen many success stories, but also failures.
This guide examines the main issues to keep in mind when making the transition from an NGO to a social enterprise. It does not advocate for transition or not, but focuses on the consequences of making the change.
From identifying success (and failure factors), to practical tips on business planning, HR, organisationals shifts and communications, to summarising legal and taxation issues, this unique guide makes use of Cambodian case studies and is based on several years of research.
The content of this guide is the following:
Why this guide
Who was this guide developed for?
2. NGO or Social Enterprise?
• Why make the transition?
• What is your model?
• Case study 1 From project to enterprise
3. What needs to change?
Thoughts on Profit
Understanding of time
Identification of activities
Map your business
The marketing issue
Research your customer
A note on unintended negative consequences
• Case study 2 Mistakes are important lessons
• Case study 3 A successful change
4. Governance and legal entity
Shall I operate the business inside the NGO or separate the activity?
Governance in case of separation :
Doing business under the NGO status: Pros and Cons
Doing business under a commercial status: Pros and Cons
• Case study 4 A case of governance
5. Your finances
New financial analysis
Measuring Your Cash Flow
If things aren't looking so good
What are your options?
Which option shall I choose?
• Case study 5 : Funding for Social Enterprise creation
7. Human Resource Management
Challenge: having the right skills in the team
Questions to ask
Things to try
10 .Glossary: the words you need to know
If you wish to acquire this unbiased, hands-on and comprehensive guide, please contact Laura: firstname.lastname@example.org
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