More start-up founders are identifying themselves as social entrepreneurs--that is, people who build organizations with an eye towards having a positive effect on the world.
With so much talk these days about corporate social responsibility, many companies are feeling compelled to jump on the values bandwagon. Because of their agility, small businesses in particular are at the forefront of what is becoming a responsibility revolution. But, what does it really mean to be a mission-driven business? Simply selling green products does not classify a company as values-led, according to Jeffrey Hollender, co-founder of the consumer products company Seventh Generation. So, whether you are thinking about starting a social enterprise, or want to incorporate a social mission into an existing company, here are some tips for succeeding as a social entrepreneur.
Building a Values-Driven Business: Think About What You Can Provide
Being passionate about protecting the environment or providing clean water to kids in Africa is all well and good, but in order to be a social enterprise you also need to have a product or service that provides value to others. Jeffrey Hollender of Seventh Generation recommends going through the following exercise to determine what kind of value proposition your business will have. Hollender says that every entrepreneur should start by trying to answer the following question: What does the world most need that we as a company are uniquely able to provide?
The key point for any social entrepreneur to understand is, "your core values and passion have to align with some demand in the marketplace," says Hollender. In other words, a values-driven business isn't going to succeed if it relies on the owner's passion alone. Deborah Nelson, director of San Francisco-based Social Venture Network, a non-profit organization that supports social entrepreneurs, says there's more than one meaning to "value" when it comes to running a social enterprise – there's your market value and also your defining values (or beliefs). She reminds budding social entrepreneurs that it's important when building your company to "lead with your value, and follow with your values."
Dig Deeper: How to Create a Company Philosophy
Building a Values-Driven Business: Hone Your Mission Statement
Having a visible and known mission statement is crucial to building a values-driven business. It's not uncommon for businesses in general to form without a mission statement, but if you haven't spent a significant amount of time thinking about the goals of your social enterprise, make sure you work on that core building block before going any further. "It's always a good idea to go online and read the mission statements of the 10 companies that you most admire," says Hollender. You'll find that it helps to see the operating principles and values-oriented statements put out by established companies, and then use those as model for your own, he says.
You'll want your mission statement to embody both what you're passionate about and how your business will help you fulfill it. "Your mission statement should be strong enough that it continually drives you to keep focused on your values, and gives insight into your value proposition as a business," says Hollender. Once you've spent some time refining your mission statement, don't just ignore it. Use it as your compass for making decisions, and put it out there whenever you're presenting your company to others.
Dig Deeper: How to Write a Mission Statement
Building a Values-Driven Business: Focus Your Efforts
Focus can be a big challenge for social entrepreneurs, says Ganesh Rengaswamy, a vice president at Unitus, an international non-profit that promotes the growth of microfinance. Most do-gooders have started a social enterprise because they are very passionate about a particular social issue or problem. However, Rengaswamy, who has trained entrepreneurs worldwide on the topic of leadership and social enterprise, says it's common to get distracted by the broader social problems while building a company, and feel compelled to want to "fix it all." In his experience, Rengaswamy has found the entrepreneurs who become most successful are those who stay focused on their founding mission and don't try to do too much at once.
One way Hollender recommends staying focused is to start small. For example, if your mission is to stop hunger, it's better to refine that by being specific about what you can do on a local or more concentrated scale to achieve that mission. You will always be able to expand on that vision later, once you've established yourself as a business. Another danger of trying to do it all is that it often creates confusion for employees, and then they don't know what aspect of your vision they are expected to deliver on, says Hollender. "If your employees or people connected to your company can't tell you how the given mission of your company would affect a decision they have to make, then you are probably not staying focused enough," he says.
Dig Deeper: The Power of Focus
Building a Values-Driven Business: Practice Transparency
Along with the task of staying focused comes the importance of being transparent in the way that you run your business. The easiest way to build trust with consumers and employees is to be clear about what you are and aren't doing, says Hollender. A good way to create that transparency is by putting together a corporate responsibility report. The report doesn't have to be long but it should discuss how exactly you are being socially responsible in your process and methods, says Hollender. It's important to point out the areas where you are striving to do this as well, but may not have the capacity to do so at the time. It's helpful to post the report on your Website for your customers to see, as well as share it with your staff. The more open you are about your process, the easier it will be for your employees to deliver on your mission, says Rengaswamy, and the more invested they will feel in the success of the company.
