“5 years from now it’s going to be strategy malpractice not to realize that the two sectors (business and social) are now coming together – there are huge market opportunities that weren’t there before.” — Bill Drayton, CEO, Ashoka (Bloomberg News Interview)
We are living in an increasingly integrated society. This isn’t news to anyone. Millenials and GenY-ers are demanding that corporations and nonprofits alike be more and more accountable — which means more and more transparent. If your institution — charitable or otherwise — isn’t proving its social benefit, it’s going to have a hard time surviving.
After a trip to the Bridge Conference in DC last week, I’ve been thinking ad nauseam about the traditional barriers that segregate the nonprofit and commercial sectors. While the ideological distinctions are something I won’t get into now (another Uncharitable inspired rant) the strategic and tactical applications seem to be moving closer to one another. Here are Empax we’ve been thinking about how these two traditionally opposing sectors are approaching a single, common ground (to some degree) and my thinking on this was solidified and enhanced after the conference. The survival of both commercial and nonprofit entities depends entirely on forging genuine, mutually beneficial, and honest partnerships.
This fact should be exciting (it is to me!) and we can see it as a challenge for us to all rise to. As a society, we have the opportunity (with a slight dose of obligation) to transform industries and set new standards for how companies operate. But, like so many great accomplishments, this endeavor requires collaboration in the greatest sense. Shifting markets and increasing positive social impact means that business entrepreneurs and social entrepreneurs have to come together and work side by side.
Bonus: These new relationships can be profitable for everyone. This type of collaboration can open up huge, new markets that previously were untapped by corporations. Merging the lower cost structure (retail, loans) of nonprofits with wholesale, commercial models can yield a tremendous result.
Another word of wisdom from Bill Drayton: If you work for a bank — of any iteration — micro credit is a product that you must have.
Image Credit: Aidan Jones