October 13, 2010

'One-for-One' Model

The business model for Toms Shoes (US)—giving away one pair of footwear to the needy for every one sold—seems risky in a recession where small companies are loathe to add extra costs, but several start-ups are none-the-less following suit.

Small companies have long been charitable, but few incorporate any form of philanthropy into their business models from inception since it can take several years for a start-up to become profitable, experts say.

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