The beauty of entrepreneurship is that there’s little limitations on where you decide to grow your passions.
Yet, while our human capacity to dream and innovate is seemingly limitless, the money is not. For social entrepreneurs, this can be an issue, as the most profitable industries tend to be finance and tech, making it challenging for those working in human-centric sectors to access funds and turn a profit.
Yet with an increase in big name entrepreneurs like Elon Musk now actively encouraging businesses to be more socially conscious, there are now more opportunities and financial resources available to social entrepreneurs than ever before. For those who want to make a difference, but don’t know where to start, here are X ways that you can finance your social enterprise.
1Grants can be a great jumping off point
Anyone who has ever applied for a grant knows that it isn’t easy. Having to adhere to the rules and regulations that often come with grants, there are a lot of boxes to tick in addition to making sure money you are applying for will be used for what you need. While it might sound like more hassle than it’s worth, grants can be an excellent jumping off point for first-time social entrepreneurs.
Not only do they give you the funding to get your project or business off the ground, successfully winning a grant looks great on a professional resume. Hiring a consultant or grant writer that specializes in social enterprise can help put you on the right track. Grant writers not only help you articulate your financial needs, but will find the best grants based on your specific needs.
2Talk to a fundraising expert
If it wasn’t already obvious by the title, a fundraising expert knows everything there is to know about successfully raising cash, in addition to helping you manage the money once it comes in. Financing consultants will first work with you to determine what your business needs, helping you to establish goals and set up milestones even before you start pitching investors.
Typically, you would want to work with someone who has experience in your industry, such as freelance consultants who have had a wide variety of experience and a successful track record. Many businesses work closely with their consultants, often referring to them after acquiring funding in the case that they may have questions about future funding opportunities.
3Join a community
For the majority of entrepreneurs, and especially one focused on socially minded projects, it’s imperative that you have a support network. Joining an accelerator of startup hub isn’t just about having people to talk to about your ideas, many accelerators are carefully designed to help entrepreneurs have access to professional networks, training, and continual support.
In many cases, accelerators partially fund entrepreneurs in the early stages of their project, so it’s wise to have a pitch carved out based on specific criteria of the accelerator that you are looking to join.
4Don’t overlook government funding
In recent years, local governments have dedicated resources to social enterprises as a way to improve life for their citizens and increased chances of being recognized as progressive on a global scale.
By recognising social enterprises, governments are investing in social projects to help address various social issues and create room for innovation in various sectors. Social businesses can now take advantage of the various programmes aimed at providing funding for conscious businesses, such as training and capacity building programs and public procurements systems.
While passion is the key to any social project, no business can survive without money, thus increased access to funding has allowed the social economy grows rapidly in recent years. By dedicated time and resources to developing social networks, applying for grants and collaborating with local governmental entities, social entrepreneurs have a good chance at getting their business off the ground that can actually make a difference.