In the world of social enterprise, profit cannot be a dirty word. A Social enterprise must be financially viable to create social value to those they want to serve. Linda Rottenberg and Rhett Morris, in a recent Harvard Business Review article, make the case why the scalability of social ventures requires putting financial results ahead of social impact- at least at first.
Without a doubt, entrepreneurs who lead social enterprises have to make difficult tradeoffs between social and financial goals, and the approach they use to make this tradeoff is often critical to determining the degree to which their company can grow and how quickly they can scale impact. While it may sound counter-intuitive, the data shows that those who prioritized financial goals over social ones are more likely to grow their social enterprises and achieve greater impact in the long run. Worthy article with 2 great case studies and some really interesting data.
Image credit: economicchange.co.uk
About Lisa Canning
“Vowels are to words what creativity is to the world~ basic and necessary.”
Lisa Canning is the founder of IAEOU, the Institute for Arts Entrepreneurship (IAE) and Entrepreneur the Arts.
What motivates you to explore your creativity? Follow me @IAEOU
Scaling Impact as a Social Entrepreneur Means Becoming Profitable First.