Poverty & Purpose
It is no accident that some of the hotbeds of new and successful Canadian social enterprises are in specific, economically depressed regions: North end Winnipeg, Downtown Eastside Vancouver, Regent Park in Toronto, and rural Nova Scotia and Newfoundland. It is said that necessity is the mother of invention, and indeed, the needs of the population in these regions are acute and entrenched: discrimination, drug use, alcoholism, obesity, crime, unemployment, marginalization… Where there is poverty, inequality, and significant loss of livelihood there is a need to try anything; poverty creates an irrefutable purpose to develop a mechanism to arrest human suffering. Social enterprise is one such mechanism, where a business model is employed specifically to address community and human needs.
Innovation & Investment
Desperation may be a driver for change, but someone has to create an idea for the business. In my experience, social enterprise business ideas are rarely conceived by committee. More commonly, a single person is responsible for a creative social enterprise idea, and they need to then invest their time, energy and often finances to bring that idea to the market. That individual can work independently as a solo-preneur, or as an intrepreneur within government, the private sector, co-operatives or non profits. Growth and development of the idea will of course require support from many actors within these organizational structures, and even from a broader community, but innovation and investment typically starts with one person who has a dream to make life better for others.
Risk & Reslience
However, business is not easy; ask any entrepreneur. Social entrepreneurs face an increased challenge because they live in a world where success is measured in social wealth, not in financial returns. Creating a business where maximizing social benefit drives all business decisions can—and in most cases does—suppress financial returns. Risk is therefore large and the expectation of future financial wealth is optimistic at best, and frequently a myth. In the private sector, individuals and organizations assume risk on the presumption that future financial rewards will compensate them for risking their time, energy, money and social capital. Social enterprise flourishes when the innovators have a resilient constitution, and a way to accept, manage and even embrace personal losses for the sake of a common good.
Patience & Prudence
The worst part is that starting a business creates risks that last for a long time. For many individuals and organizations launching a social enterprise, the initial energy can be whittled down by a thousand tiny cuts, often over years. In my experience, social enterprises that are spearheaded by an innovator in the non-profit sector may take up to three years to launch, and perhaps five years to break even (if ever). Accepting, managing and embracing losses and risk over that length of time—all motivated by a sense of optimism and altruism—requires exemplary patience and a strong, informed, and flexible plan to succeed. A full-fledged business plan may seem excessive, but there has to be at least an understanding of the market, the risks, the operational requirements, proposed budget including both projected income and expenditures.
Plastic Bricks. Of course.
Every once and a while a story crosses our desk that makes us wonder why nobody had done that sooner.
Nzambi Matee is a social entrepreneur in Kenya who is making construction-grade bricks out of plastic that are purportedly 7 times stronger than concrete.
We always hear that plastics take generations to decompose and break down, and yet few of us might have asked ourselves the question: “In what circumstances do we specifically need something that will never deteriorate?”
The answer is blindingly obvious: buildings, walls and walkways.
We celebrate the longevity of Roman roads, medieval castles, the pyramids, Angkor Wat, and the crypts beneath Paris’s streets. We have been (over) building with concrete for decades to create edifices–from dams to skycrapers–that we hope will stand the test of time.
At the same time we are producing plastic waste that is clogging our waterways and burdening our landfills.
Matee is an engineer who has designed a heat and pressure process to combine plastic waste (of various grades) with sand to create strong and colorful building bricks. A sort of lifesize Lego. She designed and built the machines necessary, and since 2017 her company, Gjenge Makers, has repurposed 20 tons of plastic waste. The factory now creates 1500 bricks a day.
The social benefit of Matee’s work goes beyond environmental sustainability. She is also proactively creating employment for women and youth in Nairobi, including jobs for “pickers” who are often facing significant barriers to employment. Click here for more information, and to view a video celebrating this incredible business venture.
Social Delta celebrates the social entrepreneurs like Nzambi Matee who take equal parts dissatisfaction, conviction, ingenuity, skill and savvy to solve a social problem and meet a market need at the same time.
We are inspired. We hope you are too.