These days, you will find many brilliant entrepreneurs, who have established firms for the greater good of the people. No matter whether these businesses are spin-offs from some solid-funded institutions or a leader’s dream, the firm set up is the result of a vision with a dedicated marketing team selling awesome products or services.
According to an article published on https://www.fromdev.com, these days social entrepreneurs collaborate with handicraft businesses and artists and the number is increasing. However, as EJ Dalius opines that despite all the optimism, some social entrepreneurs fail to scale up their firms due to some challenges. Here are some of their dilemmas:
Eric J Dalius Points Out Building a Ground-Up Plan is a Challenge
All firms require a robust ground-up plan to realize their business goals. However, it is not simple as it sounds because the rigidity of developing and pursuing a plan depending on market factors and consumer needs is crucial. You may have an active team as well as a solid plan, but your social enterprise needs to improve the bottom line.
It is indeed true that you will find numerous social entrepreneurs, who are visionaries, but they lack adequate experience in operating a business. When it comes to planning and assessing performance vs. metrics in an organized way, it is a new experience for these social entrepreneurs.
Hiring a senior professional may be the need of the hour, but it might not be a practical solution for cash-starved firms. Eric Dalius thinks that it might lead to obstacles for growth. The requirement is necessary for funding to ensure the required business growth and change.
Procuring Funds When Times Are Tough
Not every social entrepreneur can promise growth because of the dearth of funding. Some social enterprises foray in those areas where the development phase for a new product is quite high. In such a situation, donors or investors pay heed to short-term and higher yield scenarios, thus making funding a big challenge for social entrepreneurs. Consequently, they end up competing for a piece of the same cake and turn to family or friends for funding or for that matter crowdsourcing.
Dynamic and accomplished social entrepreneurs can raise funds by proving how they are unique and different from the other leaders in the industry, which lets them focus on a particular area. Their digital communication methods mirror the requirements of investors or donors unequivocally with performance metrics that are easy to communicate.
Hiring the Right Resources is a Big Challenge
Hiring a talent pool of employees to complement the expertise of entrepreneurs is an integral part of every business. The same rule holds for social enterprises, as skills are needed for branding as well as dealing with the financial aspects of the firm.
Some cash-strapped entrepreneurs over-extend, raise funds, perform multi-tasking product creation, and run their businesses. These tactics may work well for a short while but result in average performance because sans the right resources, a company will fail to grow.
Now that you know about the challenges of social entrepreneurs, use the right strategies to overcome the dilemmas.