Dan Brody Chief Information and Technology Officer CITO

STARTUPS FOR SOCIAL GOOD Why Social Good Startups Make Sense

  • A startup for social good is an enterprise that applies market-based strategies to achieve a social goal.
  • According to Deloitte, 75% of millennials believe businesses are too fixated on their own agendas and not focused enough on helping to improve society.
  • Zoona is Africa's hottest startup. Offers Emerging Entrepreneurs a platform to provide money transfer and other services to unbanked consumers.
  • A global socially driven ecosystem has emerged to support startups for social good—the system offers funding and community resources to entrepreneurs.

The Startup for Social Good

A social good startup is an enterprise that applies market-based strategies to achieve a social goal. Such startups can be either nonprofit or for-profit organizations, but in this report, we focus on for-profit ventures.

Why Social Good Startups Make Sense

Socially responsible businesses are not a new concept—there has been a push for corporate social responsibility, sustainable business practices and corporate philanthropy over the last few decades. But the emergence of the millennial generation as the largest part of the US labor pool and its growing importance as a consumer demographic have put the spotlight on the social good startup model. The reason can be found in the millennial profile itself. As employees, Millennials are characterized by seeking meaning and impact over financial gain, and as consumers, they are said to be socially minded and passionate about values. The 2015 Deloitte Millennial Survey states that “Millennials overwhelmingly believe that business needs a reset regarding paying as much attention to people and purpose as it does products and profit. Seventy-five percent of Millennials think companies are too fixated on their agendas and not focused enough on helping to improve society.”

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Given the millennial profile and beliefs, the social good startup model exhibits benefits in three key business aspects:

  • Marketing and sales: The evolving consumer profile means that more and more customers will be paying attention to product and service attributes beyond price and quality. The Nielsen 2014 Doing Well by Doing Good survey showed that 42% of North American respondents would pay extra for products and services from companies committed to having a positive social and environmental impact.
  • Recruiting: Social good startups can attract committed talent under their mission and values. A 2012 report by the nonprofit organization Net Impact showed that 65% of university students expect to make a difference in future jobs, and 58% would agree to a 15% pay cut to do so.
  • Company culture: Social good companies tend to build close-knit cultures of like-minded individuals united around a cause that goes beyond financial gain. Translating into higher levels of job satisfaction and talent retention.

Zoona

Is a good example of a profit based company doing good.

www.ilovezoona.com Zoona is Africa's hottest startup. Offers Emerging Entrepreneurs a platform to provide money transfer and other services to unbanked consumers. In Africa, people rely on their extended family and community networks for support to help them pay their school fees, cope with health emergencies, find jobs, and save for their future. These are cash economies with high rates of poverty and unemployment and very little access to formal financial services – but people living in these communities still have dreams, aspirations, and potential to achieve better lives for themselves and their families.

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