Building a robust social enterprise from the ground up requires perseverance, adaptability, and a genuine commitment to your mission, and there are different routes to establishing one. Some entrepreneurs already have an idea about what they want to do; others start with a broader, if not always clearly defined, desire to make a difference.
If you do decide to start a purely social impact venture, do note that the principles of starting your own business apply – outlined in this book – because a social impact business needs to be a business. That said, there are some things that those venturing into social enterprises must take note of:
Be honest about your social impact objectives. There is a difference between employment and upliftment. Employing vulnerable workers at low wages does not uplift them, so when considering launching a social impact business, design a model that incorporates your mission as holistically as possible. We can take the example of Rangsutra Crafts. Started by Sumita Ghosh, it makes apparel and home furnishings produced by local artisans with a view to creating sustainable livelihoods for them. The organization does not employ these artisans but instead makes them shareholders in return for a small investment. In this way, artisans become owners, and have greater agency and interest in the company’s success. At the time of going to press, their clients include Ikea, which collaborates with Rangsutra Crafts, for its products.
Be clear about what you want to do. Clearly outline your long-term vision for creating positive change. Be active and intentional about using a bottom-up approach to engage and uplift the communities being served.
Don’t forget customer-centricity. You want customers to want the product. Customers may sample your product because they believe in your cause, but a long-lasting and loyal customer base will be better built by providing them with something they cherish. In a world of fickle consumers and constantly changing tastes, Lijjat Papad still garners a lion’s share of the organized papad market. Despite being a non-profit, this co-operative formed by a group of seven illiterate women sixty years ago has a turnover of 1,600 crore and employs 45,000 women. From the very beginning of their enterprise in 1959, product quality was at the forefront of their efforts, which they have consistently delivered for over six decades. Lijjat Papad continues to abide by its core values – for example, it does not mechanise the operations side of the business i.e. the actual making of the papad; its core social impact objective is the empowerment of its women. Which is why every papad of its business remains hand-rolled so that as many women as possible remain employed.
Always be relevant. If currency is lost, so is your customer and with that, the power to create the social upliftment you desire. Jaipur Rugs works with a team of global designers to constantly update and contemporize their products. Which could be why it exports to over sixty countries. Amul, the iconic cooperative dairy brand, has consistently worked on its relevance be it its ongoing political commentary through the Amul girl or its foray into brand extensions and updated offerings.
Educate the consumer. Jaipur Rugs would send a photograph of the family that made the carpet along with the product to remind customers of the story behind the product. This serves as a key brand differentiator.
Monitor and evaluate plans. You have plans to make a difference, but is that what you are indeed making? It may be useful to establish impact measurement systems right from the start to track and assess social and environmental outcomes.
Social impact organizations have additional sources of funding open to them to include grants, impact investors, crowdfunding platforms, or philanthropic organizations. It may help to develop a compelling case for your mission in order to obtain support and form partnerships with other social enterprises, NGOs, government agencies, or corporate entities that align with your objectives. You can even collaborate with academic institutions and community groups working in your field. Some organizations enabling social entrepreneurs include:
Excerpted with permission from Big Country, Little Business: A Beginner’s Guide to Building Your Own Micro-Enterprise, Santosh Choubey with Siddharth Chaturvedi and Pallavi Rao Chaturvedi, Penguin India.
