Impactful Entrepreneurship
In the world of sustainable entrepreneurship, several key concepts can guide and enhance your journey toward creating a positive impact. Let’s explore three of these concepts: responsible innovation, sustainable business models, and social crowdfunding.
1. Responsible Innovation
Definition: Responsible Innovation
Responsible innovation is a way of organising research and innovation so it is as ethical and aligned with positive societal impact as it possibly can be. It emerged over the past few decades following increasing concerns about the impact of scientific research, both good and bad. It aims to recognise that although science can have wonderful and amazing impacts across fields such as healthcare, pharmaceuticals, manufacturing, industry, it also has the capacity to do a huge amount of harm.
Source: UCL. (2022, September 30). Responsible innovation. Responsible Innovation. https://www.ucl.ac.uk/responsible-innovation/
Responsible innovation is all about infusing social and environmental considerations into your entrepreneurial ventures. As a responsible innovator, you aim to develop products, services, and processes that not only meet market needs but also address pressing societal and environmental challenges. By integrating responsible innovation, you can create ventures that contribute to a more sustainable future.
Watch this short video about the impact of responsible innovation:
UCL. (2022, September 30). Responsible innovation [Video]. UCL Mediacentral. https://mediacentral.ucl.ac.uk/Player/I46gAedh
2. Sustainable Business Models
Definition: Sustainable Business Models
A business model for sustainability helps describing, analyzing, managing, and communicating (i) a company’s sustainable value proposition to its customers, and all other stakeholders, (ii) how it creates and delivers this value, (iii) and how it captures economic value while maintaining or regenerating natural, social, and economic capital beyond its organizational boundaries.”
Source: Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for sustainability. Organization & Environment, 29(1), 3-10. https://doi.org/10.1177/1086026615599806
Sustainable business models play a pivotal role in driving positive impact while ensuring long-term viability. These models go beyond traditional profit-driven approaches and encompass a broader perspective of value creation. Sustainable business models may involve circular economy principles, where waste is minimized and resources are maximized. They may also embrace shared value frameworks, aligning business success with social and environmental progress. By adopting such models, you can build ventures that thrive economically while making a positive difference.
Watch this short video for a good overview of the circular economy:
Magnin, A. (2020, February 17). Circular economy: Definition & examples: sustainability environment [Video]. You Tube. https://youtu.be/X6HDcubgxRk
3. Social Crowdfunding
Definition: Social Crowdfunding
Crowdfunding is a form of fundraising where a business asks the public for a contribution, usually in exchange for equity in the company.
Source: What is crowdfunding?. (2020, September 12). BDC.ca. https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/crowdfunding
Social crowdfunding offers a powerful avenue to secure financial support for your sustainable business initiatives. It involves harnessing the collective power of individuals and communities who share your vision and are willing to invest in your venture. Social crowdfunding platforms enable you to present your idea, communicate your social and environmental impact, and attract financial contributions from a wide network of supporters. This not only provides the necessary funds to fuel your venture but also fosters a sense of community and shared purpose.
This video explains more about the different types of crowdfunding:
SGX Group. (2017, April 3). Your guide to understanding crowdfunding [Video]. YouTube. https://youtu.be/voF1plqqZJA
“Crowdfunding is a game changer for social entrepreneurs. It enables individuals to come together and collectively fund projects that have a positive social impact.”
~~ Leila Janah
Leila Janah, the late social entrepreneur and founder of Samasource and LXMI, recognized the transformative potential of crowdfunding for social entrepreneurs. This quote highlights how crowdfunding platforms have revolutionized the way social entrepreneurs raise funds, allowing individuals to contribute small amounts and collectively make a significant impact. Leila Janah, known for her work in poverty alleviation and promoting economic opportunities, believed in the power of technology and collective action to drive social change.
Knowledge Check!
Resources
- Bouronikos, V. (2021, June 9). 5 best social entrepreneurship crowdfunding platforms in 2021. Institute of Entrepreneurship Development. https://ied.eu/blog/social-entrepreneurship-crowdfunding-platforms/
- Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2016). Business Models for Sustainability: A Co-Evolutionary Analysis of Sustainable Entrepreneurship, Innovation, and Transformation. Organization & Environment, 29(3), 264–289. https://www.jstor.org/stable/26164769
There are three principles required for the transformation to a circular economy: 1) designing out waste and pollution, 2) keeping products and materials in use, and 3) regenerating natural systems.
