For a small business, what’s more important than the bottom line?
A growing number of entrepreneurs are answering that question with a double bottom line — companies that simultaneously pursue financial and social returns on investment through social entrepreneurship.
Social entrepreneurship blends the traditional character traits of entrepreneurs with a passion for social impact and three core characteristics: social innovation, accountability and sustainability.
We’ve been watching the social entrepreneurship movement grow during the past decade and are impressed by business owners’ innovation and impact. As social entrepreneurship strategist Jeffrey Skoll says, “a little bit of good can turn into a whole lot of good when fueled by the commitment of a social entrepreneur.”
The biggest challenge for small business owners with two bottom lines is funding. It is hard for socially responsible entrepreneurs, even those with experience, to find investors who will take a chance on ventures sacrificing some profitability for social good.
Entrepreneurs can overcome that challenge several ways. Some companies can receive seed money through organizations that also value social impact, such as the Gates Foundation. Other successful startups are convincing investors that the social impact is a significant consideration for a growing number of consumers that will benefit the financial bottom line.
Several large area charities, World Concern and World Vision, are taking the lead when serving the poor and impoverished. Yes, they provide medical aid and emergency food in times of crisis. They also help people in many Third World countries through micro-loans and providing the means for families to sustain their livelihood with items that can be sent through a Global Gift Guide. These organizations offer donors the opportunity to purchase gifts honoring friends and family that are strategically delivered to help long term. Perhaps it’s a sewing machine, a live goat, several chickens or other tangible gifts that will make a world of difference; it’s a simple concept that captures the heart and the spirit of social entrepreneurship.
Some states are also encouraging social entrepreneurship by creating departments, programs or specific initiatives that focus on social innovation. Louisiana’s Office of Social Entrepreneurship was created in 2006 and provides a variety of services including training and workshops. Here in Washington, nonprofits have grown at a rapid pace in the past 10 years, prompting a planning group to convene in January 2010 for the purpose of forming a statewide association. The group has filed incorporation papers and is now working to organize and develop initial program plans.
In May 2009, the White House launched the Office of Social Innovation and Civic Participation, which promotes community service, increasing investment in community solutions that demonstrate results and developing new partnership models. More information is available online at www.whitehouse.gov/administration/eop/sicp
Major business schools offer graduate degrees in social entrepreneurship. Locally, we found Northwest University recently added a masters of arts in social entrepreneurship. With this emerging industry’s significant growth emphasis, jobs are sure to follow. And bringing new leaders to these organizations will be critical to achieve success.
Pat Sisneros is the vice president of College Services at Everett Community College. Juergen Kneifel teaches in the EvCC Entrepreneurship program. Please send your comments to entrepreneurship@everettcc.edu
Resources
Changemakers.net
Changemakers.net is an e-zine dedicated to the growing profession of social entrepreneurship. It is an initiative of Ashoka: Innovators for the Public, a global nonprofit organization that identifies and invests in leading social entrepreneurs around the world.
www.se-alliance.org
The National Gathering for Social Entrepreneurs is exclusively devoted to providing support for nonprofit social entrepreneurs.
www.socialedge.org
Social Edge is a global online community where social entrepreneurs and other practitioners of the social benefit sector network and share resources.
Source: Louisiana Office of Social Entrepreneurship
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