Case Study

Rede Mulher Empreendedora: Navigating mission integrity and financial sustainability

13 pages
November 2024
Reference: IMD-7-2613

The case focuses on Rede Mulher Empreendedora (RME), Brazil’s largest support platform for female entrepreneurship, and its founder, Ana Fontes. Founded in 2010, RME had grown into a significant network by 2023, impacting the livelihoods of over 12 million women in Brazil, a country with substantial gender disparities. The platform offers initiatives to empower women economically and provides knowledge and tailored content to help them manage their businesses and navigate Brazil’s entrepreneurial landscape. By 2023, RME was at a critical juncture. Although RME had clear objectives to empower women, there was uncertainty about how each initiative contributed to its mission. Financially, RME experienced a dramatic shift: In 2022, it raised US$6 million, but in 2023, fundraising efforts dropped to US$2.6 million – a 57% decrease. This decline exposed RME’s heavy reliance on corporate philanthropy, from organizations like Google.org, Visa and the Mapfre Foundation, which constituted 80% of its income. The remaining 20% of revenue came from projects funded by RME’s partners, which proved inadequate to sustain the organization’s ambitious goals. Besides, in 2023, the fundraising campaign fell far short of expectations. Reduced funds meant that new projects were postponed, and existing initiatives faced the threat of being scaled back. Fontes must ensure financial sustainability, identify new revenue streams and reduce dependence on philanthropy while staying true to RME´s mission. Her goal is to achieve self-sustainability while continuing to fulfill the mission. This involves analyzing whether RME should pivot to a for-profit enterprise, remain a non-profit or adopt a hybrid approach to balance its social impact with financial viability. Students must put themselves in Ana’s shoes and evaluate the potential benefits and trade-offs of these models to determine the best path forward.

Learning Objective
  • Evaluate trade-offs, opportunities and challenges for social enterprises balancing financial sustainability and mission alignment.
  • Assess the transition from non-profit to for-profit models, considering stakeholder perspectives and impact on mission and effectiveness.
  • Propose a business model that ensures mission alignment and financial sustainability, incorporating stakeholder viewpoints.
  • Use AI tools responsibly, integrating AI-generated information with human insights to analyze benefits, risks, biases and limitations.
Keywords
Entrepreneurship, Sustainability, Diversity, Inclusion, Equity, Financial Sustainability, Business Model Transformation, Entrepreneurial Ecosystem, Women Empowerment, Poverty Elimination, Quality Education, Gender Equality, Decent Work Conditions, Economic Growth, Reduced Inequalities
Settings
Latin America, Brazil
Rede Mulher Empreendedora, Services
2023
Type
Field Research
Copyright
© 2024
Available Languages
English
Related material
Teaching note
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