Social impact is essentially about creating a meaningful and positive change to tackle a social issue. The surge in customer interest towards sustainability is noticeable. Consequently, numerous companies are incorporating social impact into their marketing strategies in hindsight.
In 2021, the total value of sustainable investments by PE/VC assets under management in India was estimated to be around 19 billion U.S. dollars. The value is expected to grow to around 125 billion U.S. dollars in the next five years.
Here are 3 strategies you can use as a social entrepreneur to scale up:
1. Leverage KPI Reporting for Social Impact Startups
When it comes to social impact startups, leveraging Key Performance Indicator (KPI) reporting is crucial for measuring success and driving positive change. KPIs provide valuable insights into the performance of a startup in achieving its social goals and objectives. By tracking and analyzing KPIs, social impact startups can assess their progress, identify areas for improvement, and make informed decisions to maximize their impact.
Some key KPIs that social impact startups may consider include metrics related to social outcomes, such as the number of lives impacted, communities served, or environmental benefits achieved. Financial sustainability indicators, like revenue growth or cost efficiency, are also important for ensuring the long-term viability of the startup's mission.
Various online resources exist that can help in developing your metrics such as:
Stanford Social Innovation Review (https://ssir.org/articles/entry/a_playbook_for_designing_social_impact_measurement)
SoPact- (https://www.sopact.com/perspectives/impact-indicators)
2. Conduct Market Research
After identifying a social problem, it is crucial to carry out market research to assess the viability of your concept. This step will enable you to grasp the scale of the issue and the possible interest in your proposed solution. Furthermore, it will aid in persuading investors to support your initiative.
Market research is a crucial aspect of any business endeavour, especially for social entrepreneurs aiming to make a positive impact. Utilising market research platforms like Google Trends, SurveyMonkey, and WordSift can provide valuable insights into consumer behavior, market trends, and emerging opportunities. Google Trends, for instance, offers real-time data on search trends, allowing social entrepreneurs to identify popular topics and keywords relevant to their cause.
SurveyMonkey, on the other hand, enables social entrepreneurs to gather feedback directly from their target audience through surveys and questionnaires. This information can help in understanding customer preferences, needs, and pain points, which are essential for developing products or services that resonate with the market.
3. Identifying Initial Funding Sources
If you are a startup social venture that has already experienced some early success and has a large mailing list or e-newsletter subscriber base, utilising crowdfunding can be a strategic decision. However, if you lack a broad target demographic reach or a significant social following, crowdfunding may only yield minimal funding and might not be a worthwhile investment of your time.
You may explore the possibility of listing on the Social Stock Exchange. During the Budget Speech for FY 2019-20, the then Finance Minister Smt. Nirmala Sitharaman introduced the concept of a digital fundraising platform called the "Social Stock Exchange," which would operate under the regulatory oversight of SEBI. The purpose of this exchange is to allow social enterprises and voluntary organisations dedicated to social welfare objectives to raise capital through equity, debt, or mutual fund units.
Objectives of the Social Stock Exchange include:
Establishing a regulated platform that connects social enterprises with donors
Supporting the funding and expansion of social enterprises
Implementing mechanisms to ensure strong standards of social impact and financial reporting
4. Bonus Tip:
Research Upon the Government Sponsored Benefits
Registration of a Charitable Trust in India has several advantages to individuals and organisations:
Tax Exemptions: Registered trusts in India can access tax exemptions provided by the Income Tax Department, benefiting from tax relaxations.
Legal Protection: The Indian Trusts Act of 1882 ensures comprehensive legal protection, safeguarding the trust's legal standing from unnecessary claims.
A clear roadmap is provided by legal frameworks, which guide charitable entities and donors, promoting transparency. Sustained philanthropy is encouraged by long-term taxation benefits, fostering a culture of giving. Moreover, the legal status granted to public charitable trusts enhances stability and credibility.
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(Disclaimer: The views expressed in this article are strictly personal opinions of the author and do not necessarily reflect the views or opinions of the company or organisation they may be associated with. This article is intended for informational purposes only . It should not be construed as legal or professional advice and no legal or business decision should be based on its content. Readers are encouraged to seek professional guidance or consult relevant experts for specific legal or professional matters.)
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