What makes social enterprises successful?

It’s tricky to start a venture that prioritises positive impact on social challenges. Would it be profitable? What are the odds of failure? Should you even do it? When bombarded with these questions, you can refer to the stories of social entrepreneurs and what drove them to success. 

TOMS Shoes invests a third of their profits in grassroots efforts: organisations creating change at the local level, and driving progress from the ground up. They are also B Corp Certified!

Melbourne-based toilet paper company, Who Gives a Crap, has donated over AU$10.8 million (50% of their profits) to increase accessibility of clean water. What began as a crowdfunding campaign has expanded globally and recently, took on AU$45 million of capital.

Why should social enterprises be your go-to business model? 

Money can be a motivation, but if you also have a genuine desire in improving the welfare of others, social entrepreneurship is the perfect path for you. Opt for a for-profit social enterprise as it is more sustainable than a nonprofit organisation that relies on donations or grant programs. Customers, investors, and employees today would love to know how the businesses they choose are not merely selling a product or service. This will build special connections to individuals whose values align with your own as an enterprise.

So, what makes them so successful? 

When incorporating a social cause into the core mission of your business, extensive planning and commitment is required. Here are some of the key qualities of a successful social enterprise:

1. Transparent

The impact and the aims of a social enterprise should be clearly presented in media publications. What sets your business apart from your competitors? Why is this particular social impact something worth working for? What are the motivations behind this enterprise or how did this idea come about in the first place? Besides being a suitable marketing strategy, this approach allows all parties involved to be aware of the core mission they are working towards or contributing to. 

2. Inclusive

Strive for inclusion in the workplace! Think of the cause that you’re working towards and how it reflects on the working environment that you’re creating. This ensures the product or service you are providing has no unintended biases and can incorporate feedbacks from multiple perspectives.

3. Sustainable

If you’re looking to remain in the competition, self-sustaining should be one of your priorities. Relying on government grants and donations isn’t practical, especially during a pandemic or any unforeseeable circumstances. The amount of aid can fluctuate depending on factors such as the country’s economic goals. Adopt a sustainable strategy that would provide consistent capital injection!

4. Specific

In a social enterprise context, this extends beyond being innovative. It involves identifying a niche issue within various social challenges that has the greatest growth potential. Aiming for a specific major problem involving healthcare, environment, or homelessness will ensure that the impact you’re making is greatly felt whilst providing a lot of room for expansion or diversification.

Incorporating social impacts to your vision and mission would be a game changer, allowing you to both make money and make a difference. Check out our weekly Instagram series, Social Enterprise Spotlight & Industry Insights, to get inspired by established social entrepreneurs and identify problems in your everyday consumption.