Transforming NGO Projects into Social Enterprise

Introduction: Non-Government Organization (NGO) is Non-Profit Organization founded to create social impact without looking for profit. NGOs are generally funded through charitable donations, however, many of those sources of funds have dried up. For sustainability, NGOs need to find ways to enhance their sustainability, diversify their income source and become less dependent on donors. This research will study Global Peace Foundation Indonesia using Gap Analysis to find how to transform an NGO into a Social Enterprise and the innovation of the business model needed. Literature Review: This research benchmarks Fowler's steps of social enterprise, Ann Mei Chang's hybrid organization, and Burkett's social business model. Research Methodology: This research collects primary and secondary data through interviews, FGD, and desk research. The data obtained data from the collection methods will be processed and analyzed with a qualitative approach: logic model, PESTEL Analysis, and SWOT Analysis. Result and Discussion: From the logic model of Global Peace Foundation Indonesia, can be seen that some projects can potentially be transformed into a social enterprise, and the nearest industry to those projects are Tourism Industry. Continuing the logic model analysis, PESTEL Analysis was done, and the result showed some positive opportunity in the tourism industry that relate to what Global Peace Foundation Indonesia value. As there’s a positive opportunity, SWOT Analysis was used to find the strategies to implement. Those Analyses were used to produce the Value Proposition Canvas and Social Business Model of Global Peace Foundation Indonesia. Conclusion and Recommendation: Fowler's steps of Social Enterprise are slightly different from the transforming steps of Global Peace Foundation Indonesia. This research can be used by other field affiliates of the Global Peace Foundation and other NGOs who want to transform into social enterprises too. Future research can focus on the assigning human resource and leadership to the transformation process.


C. Business Issue
Gap Analysis is used to understand more about the business issue

II. LITERATURE REVIEW A. Social Enterprise
The Social Enterprise is an entrepreneurial venture that is focused on the end goal of creating positive social change as well as a steady revenue. Unlike NGOs that just focus on social impact, a social enterprise must focus on social needs by providing different products or services and using their earned revenue alone or along with grants in order to operate. Social Enterprises do not measure their success on profit but on the power to affect social change (Oberoi et al., 2019) Nonprofits are using entrepreneurial strategies more often to tackle societal issues and make a sustainable social impact. The institutional Entrepreneurship approach can be used in order to comprehend the processes and strategies for nonprofits to change into social enterprises. Here is the social Enterprise Process steps (Fowler et

B. Hybrid Organization
According to Ann Mei Chang in her book Lean Impact, a hybrid organization is one that blends the market-driven strategy of a forprofit company with the social objective of a nonprofit. Hybrid Organizations use corporate principles and entrepreneurial strategies to develop long-lasting answers to social issues. Chang stresses the significance of diversifying revenue streams while discussing the financial plans of hybrid organizations. Chang advises investigating various funding options as a result to achieve financial stability. There are some financial schemes and strategies discussed in the Lean Impact book: 1. Earned Income: By offering goods or services that are directly relevant to their social goal, hybrid organizations can make money to fund their operations by creating products that are in demand. 2. Cross Subsidization: This strategy entails using income from successful operations to pay for the expenses of achieving social effects. Hybrid organizations can support their social programs by combining initiatives that generate cash with those that are focused on making effects. 3. Impact Investing: Hybrid organizations can entice investment from parties interested in both financial gains and social effects. Impact investors provide money to hybrid organizations in the hopes that they will also produce quantifiable social benefits. 4. Partnerships and Alliances: Partnerships with other organizations, companies, or governmental agencies can provide hybrid organizations access to more information, capital, and expertise. Hybrid organizations can increase their impact and broaden their reach by utilizing a partnership. 5. Crowdfunding: Through online platforms, hybrid organizations can raise money from many people who are committed to their purpose. Using crowdfunding to engage the public and raise money can be a successful strategy. 6. Grants and Philanthropy: These conventional types of funding can offer vital early-stage assistance or project-specific funding.
Hybrid organizations produce social and economic value because of the change their actions create. In order to allocate resources and objectively improve public interest activities inside hybrid organizations, public administrations must employ a variety of methods, one of which is social impact evaluation. Impact assessment is broken down into the five components of the value chain (inputs, activities, outputs, outcomes, and impact), which ensures a linear characterization of the value created by change with procedural objectivity capable of appreciating the complexity of hybrid organizations (Esposito et al., 2021)

C. Business Evaluation Analysis
Internal Analysis A logic model is a methodical and visual way to communicate how we understand the connections between the tools we have at our disposal to run our program, the actions we want to do, and the changes or outcomes we want to see (Volf, n.d.) External Analysis PESTEL Analysis is used to understand the external factor that can affect the potential that an organization can get. The organization can mitigate and predict the risk by analyzing those external factors and leveraging the opportunities. Factors that will be analyzed with PESTEL Analysis are; political, economic, sociocultural, technology, Environmental, and Legal.

B. Data Collection Methods
There are 2 types of data that need to be collected; Primary Data and Secondary Data.
1. Primary Data In order to get the primary data, different approaches are used in this study. For the market side, the interview will be conducted at schools, universities, or other organizations that need sustainable tour programs. This questionnaire is used to get input from the target market of Global Peace Foundation Indonesia. For the supply side, interviews will be conducted with the respondents who will be involved in the business process of the social enterprise.

Secondary Data
Secondary data is collected through some exploration of the data and information from several sources. Desk research will be conducted to get the data. People involved in business process Business Process FGD 3.
Internet supporting Desk research

C. Data Analysis Methods
The data obtained data from the collection methods will be processed and analyzed with a qualitative approach. There are 3 methods used to analyze the data:

A. Analysis
Internal Analysis Logic Model Analysis is used to identify which projects or activities that can be transformed into a social enterprise and define the social impact that Global Peace Foundation Indonesia wants to achieve through various activities by identifying the current issues that Global Peace Foundation Indonesia wants to solve. Through the Focus Group Discussion among the teams, below are the Logic Model Analysis of Global Peace Foundation Indonesia

External Analysis
Knowing that tourism is the most related industry to current Global Peace Foundation Indonesia projects, PESTEL Analysis in tourism conducted by the Executive and cross-functional teams of Global Peace Foundation. Here is the result:

Government Support
Indonesian government encourages the creation of initiatives for community-based tourism that aim to strengthen local communities and protect cultural assets.

Political Stability
Indonesia has political stability that smoothen policy implementation for tourism sector fostering investor confidence and ensuring tourist safety

Government Regulations
Law No. 10/2009 on tourism provides guidelines for the management, development, and promotion of tourism as well as for the protection of tourist rights and responsibilities

Visa Policies
To make traveling easier and draw in foreign tourists, the Indonesian Government has introduced a number of visa policies including e-visas, visa on arrival, and visa-free entry for nationals of specific nations E

Economic Growth
The sustained economic growth in Indonesia has aided in the development of the middle class and boosted disposable cash for domestic travel

Infrastructure Development
Investments in the construction of infrastructure, including roads, hotels, and airports, are required to support the expansion of the tourism sector

Exchange Rates
Changes in exchange rates can impact both domestic and international travel, making Indonesia more or less affordable to tourists from abroad

Demographics Trends
There is increased demand for domestic and international travel is mostly due to Indonesia's expanding middle class

Tourism Education
The Indonesian Government prioritizes raising the level of human capital in the tourism sector which involves offering training courses, financial aid, and educational efforts to help tourism industry personnel improve their knowledge and skills

Social Media and Technology
Travel behavior has been influenced by the pervasiveness of social media and technology, with travelers now seeking for real and social media able experiences

Lifestyle Trends
Some Lifestyle trends aligned with the services are; adventure and outdoor activities, sustainable and responsible tourism, cultural immersion and authentic experience, wellness and mindfulness tourism, and influencer culture.

Cultural Diversity
Tourists looking for unique experiences and cultural immersion find Indonesia to be an appealing destination due to its vast culture and heritage

Internet Penetration
Online reservations and access to travel information have been made easier because to Indonesia's rising internet usage, which has helped travelers plan their vacations

Mobile Technology
The manner that visitors find information, make hotel reservations, and discuss their travel experiences has changed as a result of the widespread use of smartphones and mobile apps Technological Advancements VR Tours and online travel agencies have the potential to improve the tourism industry and draw more tourists E

Natural Attractions
The abundance of natural beauty in Indonesia is a major factor in drawing tourists.

Climate Change
Tourism's quick expansion may cause climate change problem

Natural Disaster
Natural disasters are common in Indonesia, which can have an effect on the infrastructure and security of the tourism industry L

Safety and Security
The bombing and increased number of extremists can cause travel banned or travel advisory to not enter Indonesia

Regulation and Compliance
Sustainable tourism development depends on adherence to legal and regulatory requirements such as labor laws, environmental laws, and health and safety standards

Intellectual Property
To maintain Indonesia's cultural legacy, it is crucial to protect intellectual property rights, especially those for traditional cultural manifestations and indigenous knowledge

SWOT Analysis
Combining external and internal analysis of Global Peace Foundation Indonesia, the executive and cross-functional team of Global Peace Foundation put it together to find the strategy to execute by using SWOT and TOWS Analysis.

B. Business Solution
Value Proposition Canvas By doing an empathy interview with the customers, this research is able to capture the pains, gains, and jobs of the customer.