Key Principles of Social Enterprises: Has a clear goal as its core purpose

What is a Logic Model?
A logic model is a visual representation of your enterprise that enables you to demonstrate your understanding of the relationships between the problem, the available resources, the main activities of the enterprise, the output, and subsequent impact. By developing a logic model, you are developing the foundation of the enterprise based on a theory that, “If X happens, then Y will result”. Logic models derive all of their nuance and detail from the research methods described in the Business Concept module and have a variety of uses. Logic models can be mapped out by hand or digitally on the computer and can be used to summarize the activities of your enterprise as it grows, when you pitch your enterprise to potential funders, partners or donors, and as you begin to measure impact. When it comes to revisiting and updating a logic model, some organizations have a long-standing model that clearly represents the work of the company and rarely changes. Some social enterprises will view their logic model as a fluid and adaptable tool meaning that they must update it from time to time to reflect their work. In these instances, enterprises may need to update their logic model on an annual, quarterly, or monthly basis depending on the work being done. In sum, logic models demonstrate how and why an enterprise will work and they clearly reflect a thoughtful and well-informed strategy that honors the values and beliefs of an enterprise’s customers and audience.
Uses of a Logic Model
Defines the goals of the enterprise, the services and products marketed, and a quantifiable outcome
Demonstrates how an enterprise will achieve its goal and why it will succeed
Describes what resources are available and how they can be most effectively used in building the enterprise
Can be used as a baseline when it comes to measuring impact and comparing it to goals and indicators of success

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