Social Enterprise is at a distinct disadvantage, some might say, because at the end of the day they rarely turn as high a profit or have as big margins. These are very real problems for social entrepreneurs because without these big factors attaining startup capital is rather difficult. However, these factors are as ancient for measuring a businesses ability to succeed as are those bankers that continue to use them. The success of a business has very little to do with profit, and more to do with people. Successful entrepreneurs are those with passion and an unwillingness to fail that will win out in the end. It is these same qualities that social entrepreneurs have (for the most part) in abundance. Entrepreneurs who decide to start a business with the hopes of improving society are more likely to push for success than are those who start for reasons to do with profit. I don't intend to claim that there are not extremely passionate entrepreneurs, or very successful entrepreneurs, who are only in it for the money. What I am saying, however, is that the risk of an entrepreneur failing is much more likely to come from this pool than from the social enterprise pool of candidates.
What if instead of measuring a companies success by profit we measured it by how much it has or will improve the human condition? or the amount of lives it has or plans improve/save? What about the old adage for investors about risk vs. reward - the reward is making a difference in the world, and the risk is lower to invest.
In the future I can forsee these changes taking place and I can also see the gap in profit between social enterprise and their corresponding for-only-profit ventures closing as more and more consumers start to spend their money on products and services that serve a greater good.
Business is all about being able to look into the future and see what is going to be the next big hit. I challenge anyone to contend that social enterprise is not going to be one of the next big trends. So as investors and consumers lets abandon our archaic methods for analyzing success and realize that their will be lot more reward for putting our money into businesses with a goal of making a difference. You can be apart of the future or you can watch it happen, it is your choice.
Tuesday, November 6, 2007
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