Social consciousness needn’t be at a loss

Afew years ago, when entrepreneurs pitched business ideas to potential financiers, highlighting how profits could be maximised with social and environmental impact on the business model, most people did not understand it.

However, interested investors were able to comprehend the profit model and philanthropy … but the two combined seemed like a grey area.

Fast forward a few years, and the world has witnessed some exciting and potentially game-changing businesses, with social enterprises — which combine a traditional business model with a pressing social mission — leading the charts. In today’s world, social enterprise models are spanning multiple disciplines, especially digital. We, for one, have social initiatives embedded in the DNA of the organisation and with a fierce mission for social change and community impact.

While most social enterprises are driven by consumer demand, the movement is driven mainly by younger entrepreneurs deeply connected to the world and to societal challenges. They want careers that allow them to create positive change.

However, what is interesting about social enterprises is that while social objectives are at their core, to succeed they still need to generate cash, be profitable and scalable. Interestingly, most social entrepreneurs can attract the right capital and funds, given the nature of their business.

It has been observed that investors are always keen to invest in out-of-the-box ideas that are not just profit-generating, but also good for the society at large.

It’s simple to undertake social entrepreneurship, but it is imperative that the business makes a difference to society. If the idea doesn’t have a sustainable way of tackling a problem, then the impact created will be short-term.

It is therefore recommended that entrepreneurs looking to pursue social entrepreneurship undertake research and identify potential gaps to address various social issues. Similarly, it is significant to have a clear sense of mission — who it will benefit, what difference it will make, how it will be measured and evaluated and how will it reach the right audience.

Challenges

Although the idea of social entrepreneurship might sound exciting, it should be noted that when you come up with an idea that challenges the conventional business models, no matter how big it is, it will face criticism, setbacks and barriers.

Ensure that your idea is a long-term approach that is sustainable for years into the future. The key is to not follow the herd, but stay transparent, focused, authentic and determined.

As with every business, social enterprise has its own set of challenges. Despite the difficulties, one in four people who want to start a business want to create a social enterprise.

Importantly one third of start-ups globally have social good as their core mission. So, if you’re looking to be a social entrepreneur, keep striving for better — in your work and in the world.

■ Mona Ataya is CEO of Mumzworld.com and Communication Chair for The Entrepreneurs Organisation — UAE Chapter.