Many socially responsible enterprises have taken to crowdfunding India platforms to initiate their ventures. These are called social enterprises. A social enterprise essentially implies a set up that is profit based, yet fully dedicated to social work. It’s the perfect combination of a nonprofit and a corporate. At Impact Guru, we encourage and welcome social entrepreneurs to use crowdfunding India platforms to raise money for their activities for a number of reasons that will benefit them:
- Raise funds: Funds will no longer be the reason to delay your social enterprise.
- Supporters: Find support for your do-good venture through contributors who share your vision for change.
- Non-equity funding: You can opt for rewards/donation crowdfunding which allows you to raise funds without giving away a share in your venture.
- Market test your product/service: Raising funds through crowdfunding allows you to test the demand and acceptance of your product in the market.
However, if as a social entrepreneur you’re looking to raise money in the crowdfunding India world, you’re in for some challenges. More often than not, you will find that people can’t understand the difference a charity and a social enterprise, and a business and a social enterprise. This must be made very clear in your communication strategy. Here are the most common misconceptions you’d have to debunk:
Social enterprises are non-profit organizations
Just because it has the word social, doesn’t mean it isn’t allowed to be profitable. A social enterprise is a profit oriented venture that has a mission to benefit society through its activities. The profits made through their products and services, are largely dedicated to contributing to society.
Social enterprises can’t pay employees
It is true that while social enterprises are driven by the motive to do good, they are also profitable organizations. Not only will a social enterprise pay reasonable salaries to its employees, but they may even offer bonuses. It operates the same way as a business. As long as the venture is doing well, they will be able to pay employees.
Social entrepreneurs are not real businessmen
A social entrepreneur faces all the same difficulties, and in fact, more, than a regular businessman faces. As a matter of fact, most people who start social ventures, come from well experienced business backgrounds. Applying the same logic of businesses to social enterprises – some succeed, some fail.
Social enterprises rely on donations for money
To reiterate the first argument – Social enterprises are profit oriented. They are not charities. This means that they offer products and services in exchange of money, like any other business venture. The only difference is that social enterprises, have a larger mission to do good for the society through their venture. Donations are a part of the process in achieving the social good, not the primary method of funding.
As long as you stay true to your social mission of creating an impact, success is not far! If you have an idea that is profitable to you, but will also have a positive impact on society, start a crowdfunding India campaign to kickstart the venture, today!