MT314 Unit 10 Social Venture Proposal Example

One Case With Measurement Built In: An MT314 Unit 10 Venture Proposal for a Car Repair Social Enterprise

[Student Name]

Purdue University Global

MT314: Social Innovation and Entrepreneurship

Unit 10 Venture Proposal

[Instructor Name]

[Date]

The venture, county, funders and all figures are composite; the methods, law and sources cited are real.

Executive Summary

Problem. Hourly workers in Marlow County, Tennessee, lose jobs after car repairs of $300 to $1,500 they cannot pay in time. Venture. Mainspring Auto Works, a six-bay shop serving fleets at market rates and referred workers at a discount. Request. $280,000: a $180,000 equipment loan and a $100,000 recoverable grant. Benchmark. Job retention at 180 days above the 52 percent of a waiting-list comparison group.

The Problem

This section establishes that the problem is real, local and fixable. National survey data show that many working adults lack the cash for a $400 emergency. Marlow County has 58,000 residents, no bus service outside the county seat and a median commute of 24 miles. Human resources managers at four of the six largest employers said breakdowns were a frequent reason workers were let go for missed shifts.

Theory of Change

This section shows how a repair leads to a kept job, and where that chain is weakest. Seven steps run from referral to steadier earnings. Two arrows are rated weak: that fixing the car is what restores attendance, and that employers will forgive absences before the repair. The responses are an intake screen for other barriers, with referral to the workforce center, and employer agreements that excuse absences caused by the breakdown.

Business Model

This section shows who pays. Fleets pay full price for maintenance; employers pay $9 per enrolled worker a month; workers pay parts and $60 an hour labor, against a full cost of $95. Year-two revenue is projected at $710,000, with grants at 12 percent.

Legal Form

This section explains why the venture is a Tennessee benefit corporation. The form allows loans and equity while requiring directors to consider the stated public benefit, keeping workers' repairs in the venture's purpose even if margins tighten (Tennessee For-Profit Benefit Corporation Act, 2015).

Funding Plan

This section shows how money arrives and what it asks of the venture. A $180,000 equipment loan at 7.25 percent over seven years; a $100,000 recoverable grant repayable only if revenue passes $800,000; a $65,000 foundation grant restricted to subsidized repairs; and $40,000 in founder equity. A workforce board grant is declined because its restrictions would exclude workers referred directly by employers. Grant income is held under a fifth of revenue from year three.

Measurement Plan

This section shows how the venture will prove it works. Nine indicators separate outputs from outcomes. The comparison group, workers referred after each month's subsidized slots fill, is fixed in advance. In line with the framework of Ebrahim and Rangan (2014), the plan measures only as far as the venture's logic and influence reach, which is job retention at 180 days. Results are reported every six months. The social return estimate is about $2.19 per dollar, with a range of 1.50 to 2.88 (Nicholls et al., 2012).

The comparison group is chosen before the first repair, so the venture cannot pick its evidence after it sees the results.

Why Now

Two conditions make this the right time to open. The technical college has agreed to place two automotive students a year as paid apprentices, which eases technician hiring. And the county road department's current maintenance contract expires in June, giving the venture a chance to bid for work that would cover a large share of its fixed costs from the first year.

Linking Money to Results

The recoverable grant's repayment trigger is tied to revenue, so the venture repays only if it grows. The foundation's renewal is tied to retention at 180 days. Each funder's interest is therefore linked to the result it cares about most.

What the Venture Will Not Do

The venture will not sell used cars, offer loans or expand beyond Marlow County in its first three years. Each was considered. Car sales and loans would add risks the founders are not equipped to manage, and expansion before the measurement plan produces results would scale an untested model. The proposal asks funders to back a narrow, measurable case first.

Three-Year Projection

Year one: revenue $520,000; loss of about $48,000, covered by the recoverable grant.

Year two: revenue $710,000; break-even in month 22.

Year three: revenue $820,000; surplus of about $61,000; recoverable grant repayment begins.

Risks

1. County contract ends (high). Owner: founder. Response: two private fleets in discussion; line of credit.

2. Technician turnover (high). Owner: shop manager. Response: wages at market rate, certification support.

3. Weak arrow 4 fails (medium). Owner: navigator. Response: intake screen and workforce center referrals.

4. Weak arrow 5 fails (medium). Owner: founder. Response: prioritize referrals from employers with signed agreements.

5. Mission drift toward fleets (medium). Owner: board. Response: floor of 30 percent of bay hours on subsidized repairs.

Appendices

A. Pilot data: 41 repairs, 34 employed at 90 days. B. Employer letters of support. C. SROI worksheet with sensitivity table. D. Timeline, from lease signing in March through the first full year, with monthly milestones.

References

Ebrahim, A., & Rangan, V. K. (2014). What impact? A framework for measuring the scale and scope of social performance. California Management Review, 56(3), 118-141. https://doi.org/10.1525/cmr.2014.56.3.118

Nicholls, J., Lawlor, E., Neitzert, E., & Goodspeed, T. (2012). A guide to social return on investment (2nd ed.). The SROI Network.

Tennessee For-Profit Benefit Corporation Act, Tenn. Code Ann. § 48-28-101 et seq. (2015).