The folks who brought many cities what is now recognized as a bike-sharing are bankrupt -- seriously bankrupt owing their founding city some $40 million dollars and other creditors another $9 million.
Oops! Is this an indicator of the prospects for nonprofit social enterpise? It just doesn't work?
I for one do not believe this organization's belly flop is a harbinger of the evils of social enterprise but it sure does offer some warning lessons. One such lesson: social enterprise is a risk. But what revenue generating venture is not? The risks are huge for every venture: upredictable market demand; unpredictable economic environments; unpredictable competition. One can't be guaranteed a win.
But there are lessons to be had about what it takes to launch, maintain and manage a social enterprise and as the NPQ notes: the lessons will be one of this program's legacies.
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