We’ve all read and heard by now the myriad reasons that this crisis is unprecedented: that in this time of grief and fear our virtual interactions leave us exhausted and keenly, but fruitlessly, aware of all that we’ve lost; that the luxury of self-isolation made possible by those who venture into the battlefield daily is one we should embrace and leverage, to will into being shiny new opportunities.
I have been saddened and sometimes surprised to hear of the demise of companies who seemed to be faring well, who responded quickly and decisively and yet still failed to survive. It made me realize that while the ground has been shifting daily, some of us still found our footing. That the truism is sometimes true: challenge and opportunity go hand-in-hand; endings trigger new beginnings.
And that, all other things being equal, in a climate of global uncertainty social enterprises are far better equipped to transform obstacles into gateways to opportunity. Here’s why:
1. Impact-driven businesses are what the world has been needing and it finally knows it.
On March 26, Edelman released a special report on Brand Trust and the Coronavirus Pandemic. In it, 90% of respondents expected or hoped that brands would protect their employees at all costs. 81% that brands would step up and “do what’s right”, to keep customers informed, and communities safe.
When we design social enterprises, we design them with a stakeholder lens. We devise solutions that solve a problem for our users or beneficiaries and seek to generate a financial return doing it. We look for win-win-win solutions so our activities benefit all of our stakeholders — from our suppliers, funders and employees to the larger community and the natural environment.
Brands that act in the interest of their employees, stakeholders and society at large will reinforce their expertise, leadership and trust and immeasurably strengthen the bond they have with consumers.—Edelman Special Report
We know that “doing what’s right” comes at a cost that you can factor in to build better ventures that generate shared value.
And if, as Michael Porter defined it in 2011, ‘Shared value rests on the premise that both economic and social progress must be addressed using value principles,’ and ‘Value is defined as benefits relative to costs, not just benefits alone,’ then this is our time.
Because creating shared value is what social enterprises have been designed to do all along.
2. You know how to navigate uncertainty.
Solving some of the world’s thorniest issues means knowing how to design around the unknown and the unknowable.
Social enterprises do not inherently face more risk than traditional enterprises, they face more uncertainty. Many social enterprises create new markets with few comparables. They might operate in uncertain environments with weak governance, unreliable infrastructure, or unexpected competitive response.
This uncertainty breeds a resilience and inventiveness that set social entrepreneurs apart. As such and in this time of global uncertainty, we come prepared, open to adapting and finding new ways forward. It doesn’t mean it’s easy; it simply means we engage ready to face both the challenge and the opportunity.
When you design with a larger part of an ecosystem in mind, solutions are more inclusive and more widely beneficial. When you design with uncertainty in mind, you tolerate failure and risk as stepping stones to success.
And that’s how social enterprises have been designed all along.
3. You’re ready to collaborate and amplify.
In the same COVID-19 special report, 86% of respondents wanted or hoped that brands would act collaboratively and as “a safety net, stepping in where they are needed and able, to fill gaps in the government’s response to the virus.”
As early as the 1970s, social enterprises and hybrid structures emerged from this very need to address gaps between the third sector, government, and corporations. We collectively witnessed a need for more than corporate social responsibility or pure philanthropy. As Schumpeter described it when he defined social entrepreneurship, we needed “new and better ways to address social problems or meet social needs”.
This is such a moment.
We are witnessing an unprecedented demand for, and level of, collaboration, particularly between government and industry. But we’ve also seen rapid responses from Foundations and private funds.
Tackling this current crisis must involve systemic change and some governments are already seizing the opportunity to fund solutions if they address societal issues and create jobs, if they disrupt dysfunctional industries to spur reinvention, if they address costly mistakes.
Now is the time for social entrepreneurs to apply the skills they’ve developed to lead the co-creation of a new economy that builds on what we’ve known all along: you can do well and do good at the same time, unapologetically.
And now, it seems possible that the world is finally ready for it.
Isabelle Swiderski helps founders design better impact-driven ventures.
