Polina Silakova‘s seventh post in our Emerging Fellows program continues to explore social entrepreneurs. The views expressed are those of the author and not necessarily those of the APF or its other members.
Social entrepreneurship is winning more and more hearts and minds. It is showing a potential to disrupt traditional business models. For now, it is still quite niche and will need to come a long way to be seriously considered as an evolution of capitalism. The time required for the sector to mature and the broader ecosystem to introduce mechanisms for collaboration is one reason. Yet the main cause is probably that it is just bloody hard to be a social entrepreneur.
Not only do you face all the issues that most start-ups are too familiar with – unstable cash flow, scalability, securing high product quality with limited resources – there is also an additional level of complexity: delivering on the promise to give back to the community. To make things harder, it is not enough just to be doing good – you are expected to demonstrate that your approach is working. With social impact in the heart of the business proposition, it is essential to be radically transparent about profit and how it gets distributed. For a social enterprise, earning customers’ trust is more critical than almost for anyone else: no customer wants to find out that the dollars they spent to support a social cause have sponsored someone’s luxurious vacation. And trust takes time.
On top of the challenges of these early days when social entrepreneurship is toddling its way into the big economic system, we would argue that some of the obstacles are created by the entrepreneurs themselves. The very disconformity which drives social entrepreneurs to start their own business in the first place might be doing them a disservice at a later stage. Surveys suggest that after the paramount motivation to make the difference, the key motives driving these startuppers are the need for acknowledgment and heroism. Combined with a strong attachment to a specific social issue, this might make collaboration with other entrepreneurs more difficult. Opportunities to make more impact with joint forces are being missed. This leads to the high fragmentation of the social entrepreneurship ecosystem which slows down the development of the sector.
Previously, we touched on the lessons that business can adopt from nature. Is there a recipe from the wild world which would help social entrepreneurs? Potentially, yes – the phenomenon called the edge effect. In ecology, the edge effect happens at the boundary where two ecosystems, such as forest and savannah, meet. This is the place where the most forms of life are born. By drawing on the distinct features of the two different habitats, edge effect creates the environment for unprecedented biodiversity. A lot has been said about the importance of diversity for innovation, and social innovation is not different.
Stepping out of the zone where you have full control, letting the certainty go and trusting emergence might not be easy. This is the time and space when one might get uncomfortable with the ambiguity of how the future might unfold. This space is called liminal space – the threshold where the solutions from the past are not effective anymore and the new solutions are only shaping. Despite the discomfort, with a little luck and trust this space might uncover completely new answers to an old problem – it can show the way to innovation.
To part with one’s personal ambitions in order to amplify social impact might be hard. But if we truly want to make a sustainable change, we need to move from ego- to eco-system, as Otto Scharmer puts it. We live in the time when we need not heroes but leaders. Leaders, who sense how to jump on an opportunity, able to think in systems, connect the dots and connect with people, drawing on the collective talent.
In the age of connected devices, the ability to collaborate and to come up with creative solutions is one of the key traits differentiating us from machines; it needs to be cherished. We need to shift from problem-solution matching to the recognition that many of today’s issues don’t have a known solution. Trusting a collective co-creation process can get us closer to finding what works. By going beyond the edge for more collaboration, social entrepreneurs could accelerate social innovations. This could help the whole sector more quickly to become a more serious alternative to traditional business.
Finding yourself at the edge might feel uncomfortable, but what if a step forward would give us wings?
© Polina Silakova 2018