Market Research That Sets Non-Profit Social Enterprises Up for Success

When non-profits start exploring social enterprise, they often get hyper-focused on the big idea. This is the idea that when they think about it, their gut says, “this is it!”

The problem with this approach is that to make an evidence-based decision (objective, not subjective), you need to back the idea with solid data. That’s where market research comes in.

Market research answers the simple but critical question: Will this work, and why?

Whether you’re doing a quick feasibility study or preparing a full-blown business plan, evidence-based research gives you the confidence to make smart, informed decisions. Without solid facts and figures, you’re guessing. With solid data, you’re compiling a well-thought-out analysis of the business idea.

Here’s are our top tips for effective market research for non-profits considering a social enterprise.

Why market research matters for social enterprise

Non-profits launching a social enterprise must balance mission impact and financial sustainability. Market research helps you:

• Identify whether your idea aligns with your mission, vision, and values.

• Provide a clear picture of the customers who will buy your product or service – and what is important to them.

• Gauge the size of the market and what people are willing to pay.

• Spot competitors and uncover your unique value proposition.

• Examine the capacity and resources of your organization to effectively operate this social enterprise.

A feasibility study is not about making every decision. Rather it’s about getting enough information to see if the idea deserves more time, energy, and investment.

What to research in a feasibility study

As outlined in our blog Picking your Winning Social Enterprise Idea, strong market research touches on eight key areas:

1. Mission and strategic fit – Does this idea strengthen or distract from your mission?

2. Market opportunity – Who are your customers, and how big is the demand?

3. Operational feasibility – Do you have (or can you access) the skills, staff, and systems needed?

4. Legal and regulatory considerations – Are there permits, bylaws, or CRA rules to navigate?

5. Financial feasibility – What will it cost, and can it realistically generate enough revenue?

6. Human resources – Do your board and staff have the expertise and bandwidth to move this project forward?

7. Risk assessment – What could go wrong, and how will you manage it?

8. Impact measurement – How will you track both financial returns and social outcomes?

A feasibility study isn’t meant to be exhaustive. Think of it as sketching the outline of your idea. Later, your business plan will fill in the details.

Helpful resources for non-profit market research

You don’t need to start from nothing. Here are helpful resources I often recommend to my non-profit clients:

• Harvard Business School Online – How to Conduct Market Research for a Startup

• Government of Alberta – Market Research Workbook

• Regional Business Centre – Market Research and Developing a Marketing Plan

Pair these with other Canadian data sources like Statistics Canada, ISED, or your local library, and you’ll have a strong foundation to move forward.

Research to build confidence

Market research isn’t about making things complicated. It’s about building confidence. By doing your homework, you’ll know whether your social enterprise idea is worth pursuing, needs to be reshaped, or should be set aside.

✨ Curious about where to start or need help with your market and business research? Book a Get Curious! Discovery Session with HIP Strategic. Together, we’ll explore your ideas and map out what to research so you can move forward with clarity.