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Innovation for Social Change

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Innovation for Social Change

Read the case study, then investigate how an innovative idea can create social change while using resources responsibly. Answer every question using evidence from the case where possible.

Case study: Loop Local

In a regional Australian town, many households throw away small appliances and packaging because repair services are far away and refill shops are uncommon. This creates waste and can make everyday goods more expensive. A group of residents starts Loop Local, a community enterprise combining a weekly repair café with a refill stall. Customers bring clean containers to buy pantry staples in the amount they need. Volunteer fixers help repair appliances; customers pay what they can, and a small grant covers tools and training. Local shops supply some products at a discount. Loop Local wants to reduce waste and improve access to affordable goods, while earning enough income to keep operating. After three months, the group will review customer numbers, kilograms of waste avoided, repairs completed and whether the stall covers its running costs.

Explore the idea

Use the case study to answer Questions 1–10.

1.Which problem is Loop Local mainly trying to address?

A. Too many local shops compete for customers
B. Limited access to affordable goods and repair, alongside avoidable waste
C. A shortage of appliance factories in Australia
D. Customers have stopped buying pantry staples

2.Explain why Loop Local is an example of social innovation even though it does not describe inventing a brand-new machine.

3.Match each feature of Loop Local with the example that best demonstrates it.

1. Collaboration
2. Social purpose
3. Measuring impact
4. Financial sustainability

B. Residents, volunteers and local shops contribute
D. Earning enough income to cover ongoing costs
C. Improving access to affordable goods and reducing waste
A. The group reviews waste avoided and repairs completed

4.The refill stall offers customers the amount they need, but Loop Local must still pay for stock and running costs. Which decision best balances its social purpose and financial sustainability?

A. Give away all stock and stop tracking costs
B. Set prices that cover costs where possible, while retaining a pay-what-you-can option
C. Sell only premium products at the highest possible price
D. Stop serving customers who bring their own containers

5.Because Loop Local has a social purpose, it does not need to consider income or costs. State true or false and give one reason.

TrueFalse

Social and environmental impact

Customers served; kilograms of waste avoided; repairs completed

Financial sustainability

Whether stall income covers its running costs

6.Why should Loop Local track both the measures in the review grid rather than customer numbers alone?

7.Complete the sentence: A social enterprise uses business activity to pursue a purpose, while considering how it can remain over time.

8.Name one realistic barrier Loop Local might face and explain how it could affect the enterprise.

9.Suggest one practical change Loop Local could test to increase participation without abandoning its social purpose. Explain why it might help.

10.After three months, Loop Local has more customers and has completed many repairs, but its income does not cover running costs. Give one recommendation and name one measure the group should monitor to check whether it works.