Impact and Business: 7 Benefits of Blending Purpose & Profit
‘Impact Entrepreneurship’ or an ‘Impact Enterprise’ is a type of organisation that is rooted in creating and/or accelerating positive social or environmental change. The key difference to traditional entrepreneurship is the act of making an equitable difference in communities through business activities. In other words, an impact enterprise ranks the profit of a business and the impact mission of the business equally.
A ‘Triple Bottom Line’ framework is usually the approach impact enterprises apply when measuring success.
‘Triple Bottom Line’ refers to:
People - human and social impact of your business
Planet - environmental impact of your business
Profit - revenue
Below are 7 advantages of social enterprises that are worth getting excited about as a Founder or an aspiring entrepreneur.
Benefit 1: Increased trust
Increased trust is vital for any business. A company that demonstrates a strong commitment to ethical and sustainable business practices are often viewed favourably by customers who prioritise social responsibility and sustainability. By showcasing a genuine commitment to impact and transparency, social enterprises have a unique advantage in building trust with customers. This increased trust can lead to increased brand loyalty and revenue.
Benefit 2: Enhanced worker productivity
Employees who feel that their work is meaningful and aligned with their personal beliefs tend to be more motivated and productive, leading to greater efficiency. This enhanced productivity can lead to success and growth for any impact enterprise and also helps in attracting top talent in the space to grow the mission and business even further.
Benefit 3: Growth of your community
Impact enterprises provide an opportunity to expand your community and connect with like-minded individuals who share the same values and beliefs. By promoting your mission and values, you can attract customers who prioritise sustainability and social responsibility. This can lead to increased networking opportunities, partnerships, and collaborations that can help your business grow, as well as extend your impact.
Benefit 4: Promotion of dialogue
Raising awareness and educating others on social and environmental issues through your business is essential. By promoting dialogue and encouraging meaningful conversations, social enterprises have the power to drive positive change and make a significant impact on society on a day-to-day basis.
Benefit 5: Attract capital and investment
Impact enterprises can be eligible for “impact investing” opportunities that focus on job creation and sustainability, grants, and special certifications such as a B Corporation status. These options makes it easier to establish credibility, commit to transparency, and attract customers, employees, volunteers, and investors.
Benefit 6: Sustainable growth and innovation
Impact enterprises have unique opportunities for innovation and growth, as they are able to foster innovation through impact business models and inclusive practices. By combining social and environmental goals with traditional business practices, social enterprises can drive sustainable growth and innovative ideas that create lasting positive change.
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Impact-driven enterprises contribute to the betterment of humanity more than any type of organisation. If we actively choose to be impact-driven and ethical, value can drive profit and ethics can drive sustainability, allowing the chance for impactful economic growth.
