Harmonizing the ‘Social’ & ‘Business’ in Social Business
One of the major challenges for social businesses and social entrepreneurship is that juxtaposition even with the word “social” and “business.”
Some say that there is a conflict between the social aspect and the business aspect.
Recognize the Conflict between FROI and SROI in Social Business
But really it can work and many social enterprises out there have shown that it can work. As a social entrepreneur, though, it’s very important to continually consider that ongoingly there will be that conflict between the financial return on investment and the social return on investment (the FROI and the SROI).
It’s always good to remember that there will be that conflict but always look back at your own values, and the values of the company – of the social business.
In fact, although profit and financial sustainability is important for the growth of the company and the social impact as it spreads, it’s also very important to remember the reason why the social business was created in the first place, and why it, in it’s own identity, is a social business and not a conventional business.
Share Your Thoughts on How to Overcome that Conflict
I’d like to open it up to you, and ask you: How do you overcome that struggle between the social purpose and profit when it comes to social entrepreneurship? How do you overcome those challenges?
Note: Please excuse the poor sound quality of the video. As I was living and working in Bangladesh at the time of this video, it was the rainy monsoon season. Therefore, the sounds in the background were the fierce winds and pouring rain. Thank you for your understanding.