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Blake Mycoskie, the founder of TOMS Shoes Company, started the “one-for-one” business model, whereby for each pair of TOMS shoes sold, another pair would be donated to a disadvantaged child. What type of organization is TOMS?a.Venture start-upb.Social entrepreneurship.c.Strategic entrepreneurship.d.Corporate venture.

Question

Blake Mycoskie, the founder of TOMS Shoes Company, started the “one-for-one” business model, whereby for each pair of TOMS shoes sold, another pair would be donated to a disadvantaged child. What type of organization is TOMS?a.Venture start-upb.Social entrepreneurship.c.Strategic entrepreneurship.d.Corporate venture.

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Solution

TOMS is an example of b. Social entrepreneurship.

Step 1: Understanding the question - The question is asking about the type of organization TOMS is, based on its business model.

Step 2: Understanding the business model - TOMS follows a "one-for-one" business model, where for each pair of shoes sold, another pair is donated to a disadvantaged child.

Step 3: Matching the business model to the organization type - This business model is characteristic of social entrepreneurship, where the aim is to solve social problems or effect social change, in addition to making a profit.

Therefore, TOMS is a social entrepreneurship.

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