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The Challenges of Making Money Serving the Poor: Why We Need to Redefine Success in Social Impact

Social impact enterprises and social entrepreneurship have become buzzwords in recent years. Entrepreneurs, investors, and philanthropists alike are increasingly drawn to the idea of using business as a tool for social good. This is, of course, a laudable goal, but it is also one that comes with many challenges and I am speaking from my personal experience looking at my own impact journey.

One of the main challenges of social impact entrepreneurship is making money while serving the poor. Many social impact enterprises focus on providing physical products to those in need, such as clean energy solutions or cook stove, etc…. While these solutions may look great on paper, they are often not profitable. This is because the populations that social impact enterprises aim to serve often lack the purchasing power to pay for these services at market rates.

The conventional wisdom in the business world is that companies need to make a profit to be successful. This is certainly true for most for-profit businesses. However, for social impact enterprises, the situation is more complicated. The whole point of these businesses is to make a positive social impact, and this often requires sacrificing some profit in the short term.

Despite this, many social impact enterprises still operate under the assumption that they need to be profitable to be successful. This is not only unrealistic, but it is also counterproductive. Social impact enterprises need to redefine what success means for them if they are to make a real difference.

One potential solution is to focus on vertical integration and diversification. By integrating all aspects of their supply chain, social impact enterprises can reduce costs and become more efficient. Diversifying their offerings, meanwhile, can help them reach more customers and increase revenue. These approaches are not without their challenges, but they offer a way forward for social impact enterprises that want to make a real difference.

Another potential solution is to increase government involvement in social impact enterprises. One way to do this is by creating a new tax category for social enterprises. Currently, these companies are taxed like regular for-profit entities, despite the fact that they are focused on making a positive social impact. A new tax category could provide the financial incentives that social impact enterprises need to succeed.

Despite the fact that investors state they are seeking for green solutions or wish to invest in impact companies, the returns from these investments are just not as attractive as those from fintech or other sectors that can experience growth rates of 20 or 30%. What we need to do is make improvements to the current conventional programs and transform them into ones that have a lot more impact.

Partnerships and engagement from large corporations are also essential for social impact enterprises. These partnerships could take many forms, such as transforming CSR programs into partnership programs with social impact companies. By partnering with these companies, large corporations can provide much-needed support, including funding, expertise, and access to markets.

Easier certification and adoption of carbon credits for SMEs would also be a significant step forward. Currently, the process of obtaining carbon credits is long, expensive, and inefficient. Simplifying this process could provide much-needed financial incentives for social impact enterprises.

Finally, NGOs need to develop more partnerships with social impact enterprises and avoid competitiveness within the space. Rather than competing with each other, NGOs and social impact enterprises should work together to achieve their common goals. This could involve sharing resources, expertise, and best practices.

The challenges of making money while serving the poor are real, and they are not going away anytime soon. However, social impact enterprises have the potential to make a real difference in the world. By redefining what success means for them, increasing government involvement, partnering with large corporations, simplifying the process of obtaining carbon credits, and working together with NGOs, social impact enterprises can overcome these challenges and achieve their goals.

In conclusion, we need to rethink what success means for social impact enterprises. Profitability is important, but it should not be the only metric of success. By focusing on vertical integration and diversification, increasing government involvement, partnering with large corporations, simplifying the process of obtaining carbon credits, and working together with NGOs, social impact enterprises can overcome the challenges of making money while serving the poor and achieve their goals of creating a positive social impact.

It is important to remember that social impact enterprises are not charities, nor are they traditional for-profit businesses. They operate in a space where social and environmental goals are just as important as financial ones. As such, they require a unique set of tools and resources to succeed.

Governments, corporations, and investors all have a role to play in supporting social impact enterprises. We need to create policies and systems that incentivize and reward businesses for creating social and environmental impact, and not just financial gain. We also need to support these enterprises by providing funding, expertise, and access to markets.

Ultimately, the success of social impact enterprises will depend on our collective willingness to invest in them and redefine what success means for businesses. If we can do this, we can create a world where business is a force for good, and where making a positive social impact is not only possible, but also profitable.

Decentralized Organic Waste Processing: A Sustainable Food Waste Solution.

The adage “waste not, want not” has never been more applicable than it is right now, given the global food waste epidemic. Discarded food makes up an astonishing 60% of household waste, which has serious effects on the environment, economy, and food security. The need for creative and long-lasting solutions to minimize food waste has became more essential as Africa’s population continues to expand. In-depth discussion of food waste, its effects on society, and how decentralized organic waste processing can revolutionize waste management are covered in this article, especially in light of Africa’s rapidly expanding population.

Identifying the Food Waste Problem

Every year, around one-third of all food produced for human consumption is wasted. This food waste’s numerous, far-reaching effects include:
Economic Cost: Food waste puts a strain on resources and raises food costs, costing an estimated $940 billion annually.
Danger to Food Security: Although edible food is thrown out, millions of people struggle with hunger and malnutrition, escalating the problem of global food security.
Environmental Impacts: Food waste contributes to climate change by releasing methane, a strong greenhouse gas, as it decomposes. The resources used in its creation, such as water, electricity, and land, are also wasted when food is wasted.

Identifying the Causes of Food Waste

Food waste comes from a variety of places, such as:
Overproduction: Food is regularly overbought or overprepared by restaurants, households, and retail establishments, resulting in waste.
Cosmetic Standards: Fruits and vegetables that don’t meet strict aesthetic criteria for produce are discarded.
Lack of Knowledge: Unawareness of proper storage, portioning, and expiration dates generally results in food waste in households.

Processing Organic Waste Decentralized: A Revolutionary Approach

A potential answer to the food waste issue is decentralized organic waste processing. Organic waste can be processed at the household or community level to provide useful resources like compost for gardens or biogas for cooking. This strategy offers the following benefits:

Decentralized processing diverts organic waste from landfills, minimizing environmental pollution and the health risks that come with it.
Resource Recovery: Recycling waste into compost and biogas not only saves resources but also fosters a circular, sustainable economy.
Decentralized processing aids in the mitigation of climate change by limiting the release of methane from decomposing food waste.
Community Empowerment: Localized garbage processing fosters participation in waste management by the community and generates employment possibilities.

Every family should have a small digester or compost system for their garden, and if it’s a low-income neighborhood, we can construct a large compost or biogas system that will serve the entire neighborhood. I sincerely hope that both the government and people will pay attention to this. But, the solution is close enough for everyone to get there on foot, so they can deliver the food there. Can you imaging how much of a game changer it would be if 60% of the waste would not need to be processed any more.

a summons to action

Decentralized organic waste processing has the potential to reduce the crisis of food waste and advance sustainability. The demand for such revolutionary solutions is greater than ever as Africa’s population continues to rise. We can all contribute to a greener, resourceful future by embracing decentralized waste processing.

The Need for a Dedicated Department to Help Startups Expand in Africa.

African startups find it extremely difficult to grow their companies across the continent. Due to the market’s extreme fragmentation, it is challenging for businesses with limited resources but excellent products or services to expand their networks and take root in new nations. While nations like the United States and Israel have departments to assist its entrepreneurs in going worldwide, this issue is not exclusive to Africa. Yet, the absence of such a department in Africa is impeding the expansion of its startup environment.

There is a trade office in the US that charges a fee to assist US businesses in locating the ideal partners in practically any nation on the planet. Startups can save time and money by using this strategy because they won’t have to spend any money on starting from scratch to create their network. Similar to this, Israel has a division dedicated to assisting cutting-edge technology businesses with their international expansion. By evaluating prospective partners and making relationships, these divisions facilitate the expansion of a company. It is called The Israel Export and International Cooperation Institute (IEICI) , a premier gateway for doing business with Israeli companies. Established and funded by the government and the private sector.

Building a network in a new country use to take me up to a year and a half, which is not long-term viable. A dedicated department can be useful in this situation. African nations can establish a division with the express purpose of assisting businesses grow by employing embassies to screen possible partners, cultivate ties, and make connections. They will boost trade between nations and support continental economic growth by doing this.

A significant barrier to the expansion of Africa’s startup ecosystem is the absence of a specialized department. Startups are forced to rely on their own resources, which can be time-consuming and expensive, while trying to expand without such a department. African nations may level the playing field for startups and assist them in realizing their full potential by establishing a specialized department. The advantages of such a division are obvious: it will boost commerce, economic development, and employment opportunities for young people all throughout the continent.

In conclusion, Africa requires a special division to aid in the growth of startups across the continent. Companies with limited resources find it challenging to expand their networks and establish themselves in other nations due to the current market fragmentation. African nations can simplify the process of company expansion, increase trade, and advance economic progress by establishing a department to assist enterprises in growing. Young people all throughout the continent will have possibilities thanks to this, which will help level the playing field for businesses.