When you’re trying to achieve a social good and build a solid revenue base, things can become a bit overwhelming, but despite the dual focus, entrepreneurs still need to concentrate on the metrics that account for their viable business and as well as their bottom line.
This month’s #MillennialTreps Twitter chat with the U.S. Small Business Administration on “Social Impact and the Bottom Line” was filled with what types of legal structure social entrepreneurs should consider and why these entrepreneurs might encounter hurdles when it comes to scaling.
Keeping your mission at the forefront of business decisions can be rewarding to your team and the work you’re doing, but can also be strenuous when trying to keep the business afloat with enough capital to sustain. Planning is crucial. Creating a social impact assessment can help keep your virtuous goals at the center of your business planning as you start to grow.
These were just a few of the responses. Here are some more of our favorites.
Q1: What are the fundamental differences between a social venture and a profit-oriented venture? #MillennialTreps
@SBAgov Q1: value of a better world over big bank account. #MillennialTreps — Amanda M Potter Cole (@ampcideas) October 27, 2015
A1: there aren't necessarily differences, tho there can be. Oftentimes, profits enable the furthering of social objectives #millennialtreps — michael j. crawford (@mjcraw) October 27, 2015
@SBAgov A1: sometimes the difference is only seen when finances are low and trep must decide between mission and survival #MillennialTreps — Landon Gary Young (@LandonGaryYoung) October 27, 2015
Q2: What legal structures are ideal for social entrepreneurs? #MillennialTreps
A2: The business structure you choose will have legal & tax implications. Learn more → https://t.co/FeiHMcMuo7 #MillennialTreps — SBA (@SBAgov) October 27, 2015
@KauffmanFS In my startup, thought helping vets was non-profit idea but realized that scaling and for-profit could do more #MillennialTreps — Johannes Schonberg (@jkschonberg) October 27, 2015
The business needs to be financial stable in order to support their social good mission. #MillennialTreps https://t.co/ZvqNvouzYN — Nicholas L. Norfolk (@absolut_zer0) October 27, 2015
Q3: The main driver of success in for-profit ventures is revenue. How do you measure success in a social venture? #MillennialTreps
@mjcraw @LandonGaryYoung the legal battles for @CadburyUK & @benandjerrys aired on @NPR solidified the differences for me. #MillennialTreps — Amanda M Potter Cole (@ampcideas) October 27, 2015
A3: Conduct a “Social Impact Assessment” or create a social impact framework to measure your impact #MillennialTreps — SBA (@SBAgov) October 27, 2015
@absolut_zer0 "Soft" plans change w leadership, legal documents more difficult to change. Does the legal structure dictate? #MillennialTreps — Landon Gary Young (@LandonGaryYoung) October 27, 2015
Q4: What are some things that specifically plague social ventures from growing or scaling? #MillennialTreps
@SBAgov funding, lack of access to information and networks, #MillennialTreps — AWP Network! (@AfricWomenPower) October 27, 2015
Social good startups don't get the VC interest and lack of education and resources #MillennialTreps https://t.co/tGNQDPhJkz — Johannes Schonberg (@jkschonberg) October 27, 2015
A4: A report from @hgse 'Evaluation Exchange' points out many of the common challenges faced https://t.co/ucHTRyOHsT #MillennialTreps — Founders School (@KauffmanFS) October 27, 2015
Q5: What can government, education or society do to create more social entrepreneurship? #MillennialTreps
A5: help demystify the Silicon Valley narrative and help people see #entrepreneurship differently https://t.co/qSeYkPhQbj #millennialtreps — michael j. crawford (@mjcraw) October 27, 2015
.@SBAgov Create environments in which any individual, regardless of race, religion, sexual orientation, etc, can thrive #MillennialTreps — Jason Nicewicz (@jasonnicewicz) October 27, 2015
A5: Acknowledge citizens’ interest & desire for more opportunities. Gov has the ability to establish initiatives #MillennialTreps — SBA (@SBAgov) October 27, 2015
Q6: What resources are available specifically for social entrepreneurs? #MillennialTreps
@SBAgov @uifellows through @Stanford and @venturewell does a great job of including empathy and design in higher ed #millennialtreps — Landon Gary Young (@LandonGaryYoung) October 27, 2015
A6: @SBAgov @KauffmanFS The @OppFinance offers a #CDFI locator: https://t.co/LSMduqBKWd work w/ soc. responsible businesses #MillennialTreps — CEI (@CEIMaine) October 27, 2015
Some of you may be interested in a piece I wrote: The Rise of “Social” Entrepreneurship https://t.co/70W9SOeZuB #MillennialTreps @SBAgov — Nicholas L. Norfolk (@absolut_zer0) October 27, 2015
Thanks for everyone’s participation, and we look forward to hearing from you more in future Twitter chats. To see the full list of tweets, check out #MillennialTreps on Twitter and follow @KauffmanFS to see when we’ll be having our chat next month and what topic we'll be discussing.
Want to see what happened during our last Twitter chats? Check out:
September - Twitter Chat Recap: Why Measuring Goals is Vital to Your Marketing Strategy
August - Active Pursuit Proves Key in Finding Your Startup Community [Twitter Chat Recap]
July - Challenges in Finding a Mentor, Creating a Mutually Beneficial Relationship Surface in Twitter Chat
June - Pitfalls in Hiring, Ways to Motivate a Team Arise in Twitter Chat
May - Millennials Twitter Chat Raises Questions of Credibility, Preparation and Hurdles When It Comes to Financing a Venture
March - Millennials Twitter Chat Discusses Relevance of Business Plans, Whether to Co-Found or Not
February - Twitter Chat Ignites Discussion Obstacles Facing Millennial Entrepreneurs