The year 2020 will always be known for the global coronavirus pandemic, and the ramifications of it will surely continue to be felt and seen for the foreseeable future. The crisis has gripped both the US and the world. Marketing expert Beth Debouvre says that while people have begun to search for answers in order to solve the worldwide health crisis, the global economy has also started to suffer from COVID-19’s effects.
All indications point to this: in order to recover from this economic crisis we need to turn to social enterprises, where the purpose is to create value for the society and generate income but not wealth. Solutions will need to be innovative, unique and user and environment friendly. The prerequisite to this is finding cost-effective solutions, the viability of such ventures and sustenance is a huge ask.
What does this mean? Beth Debouvre explains
In short, social enterprises deal with the people at the bottom of the business pyramid who make the majority of the working force. These are the people who will benefit from such an enterprise. It will, in turn, provide them with means of livelihood as skills and operations can be taught.
However, even with all the odds, social enterprises have various distinct advantages over all the other traditional modes of business and exchange, especially in these troubled times and for the future. Here we will have a look.
Raising capital
Raising capital and getting funds was always tricky and since the COVID-19 crisis, it should be quite daunting. However, social entrepreneurs can still find the funding quite simply because several government offices and agencies have come up with funds and incentives below the market rate interests.
Ease of promotion
It is relatively easy to market and promote a social enterprise since it is all about tackling a social problem. Attracting media and the attention of the general public to it is also easy. Keep in mind the more unique the solution, the better is the engagement.
Supportive patrons
Again, since the endeavor is for a social cause, you will have no lack of like-minded individuals, collaborators, partners, or even followers. You can get people on board as volunteers or at lower salaries.
Cost-effective venture
The most significant advantage that social enterprise can offer is cost-effectiveness. It is the main reason why such a venture is the right tool to sail us through these troubled times. The goals of most social enterprises include healthcare and medicines, education, and basic amenities. It is not about making a profit but more about giving back to people. Micro-financing options that specifically cater to the poor is another social enterprise concern that is improving the quality of life in several under-developed and rural parts of the world.
Several organizations from the corporate world have made social responsibility an integral part of their operations. Some work, some are still the money-making schemes. Therefore, the need of the hour is to consolidate the efforts and for young entrepreneurs and social investors to step in. The aim is to add value, and that is what the world needs right now.