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Difficult economic times seem to be increasing many people’s interest in becoming a social entrepreneur.
The recession has motivated a lot of people toward investing in companies which they see as ethically superior as well. An indication of this is the increase in the number of social impact funds over the last several years, such as Leapfrog Investments and MicroVest. However, this pioneering concept of synthesizing profit with mission can be difficult to navigate for many entrepreneurs.
The goal of most social entrepreneurs is to create a sustainable venture that accomplishes a positive social mission. Those social enterprises which choose a profit-based model should stick to it without apology, as long as the business is benefiting society as well through its operation. In terms of financing, venture capital is not the only option for social entrepreneurs. Many social ventures choose to self-finance with bank loans to retain greater control over their operations.
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