3 ways by which a social enterprise can get funding
A social enterprise can find funding a via business partnerships, the aid of charitable organizations, and startup competitions.
Entrepreneur gives beleaguered and cash-strapped social enterprise owners three tips on how they can the monies they need to pursue their dreams of improving the planet while getting back their return on investments.
Social enterprises or companies that may have a more altruistic goal than the usual objective of money-making have a harder time sourcing funding. The sponsors and venture capitalists they approach must agree with their vision, and more important, give them the commitment to helping them realize it.
High-powered investors who have the resources that these social enterprises need would also have to be willing to put aside their desire to make money fast if it means giving the socially relevant dimensions or aspects of the business time to grow. Obviously, not all fund-raising firms or individuals that the social enterprise executive approaches will be open to this kind of deal.
The article also outlines a few of the obstacles that the social enterprise owner will have to hurdle. First, his vision necessitates that his company is there for the long haul; this contrasts with an investor’s constant desire to see an exit strategy in case the business does not cut it. Second, investors are not sure if the usual methods of risk assessment apply to social enterprises. Finally, they also look at business aspects like market opportunity and valuation levels which social enterprises sometimes are not quick to address.
Fortunately, there are still three main ways by which social enterprises can obtain their funding.
One way is to create business partnerships with like-minded individuals and companies and leverage on them. These entities would bring economic value to the enterprise such as an idea, a property, or a resource. This industrial kind of partnership would give the company more time to return its investment.
Another way is to tap into philanthropic organizations which give donations to causes that they find worthy. Some of them these days ask for metrics to show how the social enterprise is reaching its goals.
Finally, startup competitions and angel investors are other sources of funding that can give the social enterprise its initial capital without too much interference. These entities might even be as passionate as the social enterprise executives about their vision.
Open Finance Offers Opportunities for Fintech and Banking to Collaborate
For the implementation of the technology, it is essential to have the user's express permission. According to the "Agenda fintech...
Sorgenia Receives a €50M Loan from Banco BPM with SACE Guarantee
The new loan received by Sorgenia follows last February's loan received from BPER Banca. In that case, it was a...
DE-ART Dematerializes “Physical” Works of Selected Artists through NFT
The works exhibited in DE-ART's digital gallery are not part of the generative art current, that is, they do not...
The P4Q Health Subsidiary Projects 1 Million in Revenues in 2023
This year, the group plans to start marketing in Europe and sell 20,000 units of its devices, which will increase...
The Top 6 Online Business Brokers and Marketplaces: Which One Is Right for You?
If you’re currently looking to buy or sell an online business, the first hurdle you’ll need to clear is finding...
Biotech2 weeks ago
Qubiotech Raises €500,000 and Looks to Europe and America by 2024
Business1 day ago
A Look at Barron’s Bond Yields – 1934 to 2023
Crypto1 week ago
Bitcoin: Ordinals Attract Former Ethereum Developers
Featured2 weeks ago
Coffee Producers in Vietnam and Indonesia Are Said to Have Almost Nothing Left to Sell
You must be logged in to post a comment Login