Social insertion companies

economic-dictionary

Social insertion companies are those for-profit organizations that also have the objective of inclusion, in particular, of those individuals with low resources.

In other words, this type of company combines business logic with goals of social equity. In this way, the business not only complies with generating profits, but also has a positive impact on the quality of life of a sector of the population.

Seen in another way, social insertion companies use market tools to achieve greater social inclusion.

Social entrepreneurship

Target clients of social insertion companies

Some target clients of the social insertion company may be:

  • Individuals in extreme poverty.
  • People who are serving or have served jail time and have difficulties entering the labor market.
  • Unbanked individuals who live in areas far from cities and where there is not a large presence of the State or the financial system.
  • Seniors without pension.

Example of a social insertion company

An example of a social insertion company can be one that is dedicated to granting microcredits to low-income people in developing countries.

To make the business sustainable, the firm may need to seek investors with low risk aversion. Also, the interest rates on loans should be, on average, higher than those of commercial banks.

As a counterpart, to raise funds, this company will tend to offer relatively high interest rates to its savers. In this way, you will be able to get the capital that you will later transfer as credit.

Finally, this microcredit company, having a social objective, should seek to improve the client's financial situation in the long term. That is, you should not only worry that the debtor repays the loan received.

Taking the above into account, the financial firm can, for example, advise its client to improve their business strategy, processes and / or budget management.

Tags:  economic-analysis did you know what biography 

Interesting Articles

add