Ministries of Social Entrepreneurship

In a tough economy, Christian nonprofits need fresh ways to stay afloat, especially those working in poor communities. Here’s how social entrepreneurship is funding the work of grassroots urban ministers.

THIS MEANS BUSINESS: Homegirl Cafe in downtown Los Angeles is a successful model of social entrepreneurship. Staffed by female gang members trying to leave their past behind, it's part of Homeboy Industries.

America’s economic woes have made grassroots urban ministers open to new ways of doing things. Fundraising has always been a challenge, and now more so. Common conversation topics in urban ministry circles include cutting positions, scaling back programs, and working more efficiently.

One topic stands out. The idea of starting a business to fund an urban ministry is not just hallway conversation or Facebook chat fodder. People really want to know. Even people who are critics of Big Business or Capitalism are hungry to make private enterprise work for their cause.

If you are thinking about launching a business to supplement your ministry’s bottom line, it’s important to understand both the concept of social entrepreneurship and the management capacity of the typical grassroots urban minister.

Social Entrepreneurship

The mash-up of urban ministry and business can best be engaged through the world of social entrepreneurship.

Social entrepreneurship is a term with a variety of definitions. One prominent description is that of Muhammad Yunus, the Nobel Peace Prize-winning founder of Grameen Bank, a pioneer in microfinance.

In his most recent book, Building Social Business:The New Kind of Capitalism That Serves Humanity’s Most Pressing Needs, Yunus writes:

Social entrepreneurship relates to a person. It describes an initiative of social consequences for a social purpose. This initiative may be a non-economic initiative, a charity initiative, or a business initiative with or without personal profit. Some social entrepreneurs house their projects within traditional nongovernmental organizations while others are involved in for-profit activities.

Take Yunus’s definition, add the desire to see people come to faith and life in Jesus Christ, and you have a grassroots urban minister. To illustrate this, three groups stand out.

Belay Enterprises, a faith-based nonprofit in Denver, creates businesses to employ and job train individuals rebuilding lives from addiction, homelessness, and prison. Last year 75 people worked in Belay’s businesses that include Bud’s Warehouse, a home improvement thrift store. While structured as a nonprofit, Belay realized over half a million dollars in revenue from sales, with very little by way of donor cash contributions. Jim Reiner, executive director of Belay, says they are growing a fund for new businesses that will increase the number of people employed or job trained per year from 75 to 750 by 2015. (Full disclosure: Partners Worldwide, the organization for which I work, co-hosted an event with Belay last month.)

Central Detroit Christian (CDC) created Peaches and Greens as a way to provide fresh produce to neighbors living in a vast urban food desert. The Peaches and Greens operation has both a storefront location and a mobile truck that sell fresh goodness throughout the community. Lisa Johanon, executive director of CDC and an incarnated resident, told NPR’s Michel Martin that prior to the creation of Peaches and Greens she had to drive ten miles for produce.

SOCIAL ENTREPRENEURSHIP IN ACTION: Through Homeboy Industries, ex-gangbangers like these women at Homegirl Cafe receive job training and employment opportunities, in addition to a new start spiritually.

Homeboy Industries in Los Angeles, founded by Jesuit priest Father Greg Boyle, addresses the issue of street gangs through job training and business opportunities. Homeboy made news last year when it was forced to lay off more than 75% of its staff — 300 people, many in the target outreach group — because of budget cuts. Remarkably, the 60 people who were not laid off worked in Homeboy’s bakery, which was profitable and self-sustaining, and therefore capable of weathering the cuts. Since that desperate time, with the help of some compassionate and deep-pocketed friends, Homeboy Industries has rebounded and continues to provide job training and employment opportunities for ex-gangbangers in the L.A. community. (It should be noted that while Catholic faith is at the core of Boyle’s motivation, Homeboy itself does not publicly emphasize its faith roots. It is, however, an appropriate example of social entrepreneurship in my estimation.)

Most urban ministries I know — certainly those involved with groups like the Christian Community Development Association – operate and achieve as Belay, Central Detroit, and Homeboy do. If you have only seen yourself as a pastor or minister, you should recognize that you are already a type of entrepreneur that the world desperately needs.

Management Capacity

The key to a successful social enterprise is the combination of “cause” and “good” management. The key to running a business that does good while feeding your ministry’s bottom line is the same combination.

We all have causes we are passionate about. It’s the management part of the equation that poses a challenge.

Larger urban ministries will face less of a challenge in managing a business than will grassroots groups. Sustaining a multi-million dollar operation like a rescue mission, for example, requires significant management capacity and skill. That same capacity can be redeployed or expanded to a business effort.

Smaller ministries that have survived for many years should also have some capacity to manage a new business endeavor. An outreach program with a few full-time staff has less capacity than a large nonprofit, but can still tap its network and management experience in running a business.

It’s the small grassroots groups — which are often our most innovative as well as fearless ministers — that need to truly count the cost of launching a business to fund their ministries.

I know of many effective urban ministries that are essentially one charismatic leader surrounded by a host of friends and allies. Often the leader is not paid full-time, and many times draws no salary from his work.

One man I know has a van that he uses to take aimless youth to church gatherings around his town. He uses a ministry name, but that ministry is not incorporated.

TRANSFORMING LIVES: Father Gregory Boyle, founder and director of Homeboy Industries, meets with his team. Homeboy has developed one of the largest gang-intervention programs in the nation.

Another man, an ex-gang-member, rode his bike around town, making contact with younger gangsters and talking to them about avoiding future trouble. He was connected to a number of networks and coalitions, to which he funneled many gangsters for intervention or services.

In this type of operation there is very little organizational and financial management being practiced, and therefore little on which an organization can be developed. When it does come time to grow the organization, to strengthen management and plans, the charismatic leader will either need to grow or get out of the way.

It is entirely possible for this grassroots urban minister, no matter how little formal education he or she has, to develop into a nonprofit organizational leader or business person.

But it will require a lot of hard work to get there. Even more, it will first require an act of will, a choice, to grow in an area the individual may not have a passion for.

But if you want to operate a business that functions as a business and generates a profit for use in ministry, there is no way around it: You will have to learn the management skills and discipline that any successful businessperson has.

Even if you bring on somebody to run the business you will need to learn business. How else will you know if the person you have brought on is doing a good job? Or not cheating the enterprise?

For Those Who Take the Plunge

My prayer is that great numbers of grassroots urban ministers choose to grow their business skills and launch enterprises. Take the good work you do — socially beneficial work that impacts the lives of many of the least, the last, and the lost — and combine business skills to create things like well-paying jobs and needed services for urban communities.

When it gets hard, don’t get discouraged.

For years I’ve felt like my work as an urban minister was harder than the work of an average business owner, because I had more bottom lines to attend to.

Whereas a non-performing employee in a business might quickly get fired, in a ministry setting I would give that person extra opportunity to succeed. Some businesses make this type of extra effort, but in general urban ministries are much more likely to “give a second chance” — and a third chance — than a straight business would.

Even more, our ministries often hire people that no business would hire. And yet we need to keep our doors open and maintain a basic level of financial sustainability.

You’ve trusted God in reaching out to the least, the last, and the lost. Trust Him again to help you develop the business sense and management skills you will need to grow a business that helps fund your ministry.

About the author, Rodolpho Carrasco

Rodolpho Carrasco is managing director of the Two Forty Group and an advisory board member of the Christian Community Development Association. He served for 19 years at Harambee Christian Family Center, an incarnational urban ministry in Pasadena, California.
  1. Pingback: Urban Ministry Notes – July 2011

  2. Good example for the Christian Churches. We need an income so that we can reach the Gospel to more people without depending on man.

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