Your assignment is to prepare and submit a paper on theories of creativity and culture. One of the direct factors that have an imperative effect on the sustainability of social enterprises is the source of funding. Besides many other factors that contribute to a sustainable social enterprise, this part of a maintained source funding is essential. Any Social Enterprise has to be self-reliant on the work and services that practitioners in the organizations offer to the customers (Ko, 2012).
Significantly, some organizations in the social sector are funded by grants. therefore, sustainability depends on repeated funding. Without this form of funding, the organization will no longer be valid (Thompson, 2008). As mentioned earlier, a key success factor for real entrepreneurship lies in the ability to secure funds, achieve outputs, and deliver perceived value.
Principally, sustainability is essential in a social enterprise for the sake of prosperity, yet more challenging sight is the long-term viability of this sector. Substantially, conducted research was dedicated to examining the long-term sustainability of social enterprises that are stated by Schorr (2006), where it shows two different ways to pursue long-term sustainability. The first way is developing new business models for various social enterprises, which will result in a scale that generates profits and reinvest them in direct and indirect business costs (Ibid, 2006).
On the other hand, the development of the ongoing funding sources to subsidize the gap and find permanent funding subsidies for their activities is a crucial factor for consideration. However, this view encourages social enterprises to evolve and be independent and able to commerce by trading with services and products of the SE. It is also considered that social enterprises often fund a percentage of their total costs of approximately 80% to 90% of their generated revenue. A quite compelling case can be argued that these ventures are amongst the most efficient as well and can deliver long-term sustainability (Schorr, 2006).
Moreover, non-profit organizations and social enterprises are primarily philanthropic and have an explicit aim to serve and benefit the community. Additionally, there are countable factors that might be a threat to philanthropic based organizations, which include the reliance on irregular funding sources and the pool of financial subsidies (Ibid, 2012).