Entrepreneur culture in business world encourages and rewards risk taking! This world is full of heroes who had a vision, rallied resources behind their goals – with hard work and great passion, created/launched new product/service or marketed new idea grossed profits/brand value and obtained celebrity status! Every hero had their own bouquet of failures many folds more, compared to their celebrated wins!
The entire business backbone venture capitalist structure supports who are prepared to take risk (= a venture undertaken without regard to possible loss!) everything for their new business idea! A common understanding in the business community is that some level of risk is necessary to become successful! Failure is considered a learning ground and it is the matter of selling the new project/idea that matters than the result of previous one(s)!
In the non-profit, good-will & social enterprise world, common understanding is that the primary objective is to minimize risk and maximize benefits! Any social project with considerable uncertainty of outcome will find it difficult to secure funds, volunteers and supporters! Traditional funding organizations Foundations, Social Investment groups, Government agencies, etc., support projects that already have a successful, proven track record. They remove most opportunities for risk, through their procedural approach to sponsorship! Nothing wrong in principle.
Consideration of Risk Taking is the acceptance of both success and failure.
Risk profile of commercial enterprises is that of risk tolerance consequently more acceptance of failure! Successful business people mostly have a few great failures under their belt before a commendable success!
Risk profile of Social Enterprises (and non-profits) is that of risk aversion consequently failures are not commonly accepted. Social Entrepreneurs seeking external funding for their project should exercise serious caution while building their enterprise mostly the results.
Bootstrapping is the best business model for Constructing a successful social enterprise!
Dreamer Doers in the crowd, interested in treading Social Entrepreneur route should review and revise their risk management approach to suit the profile of the SE world!
It does not seem to present a favorable fit for pure-play risk takers! Every promise & action in the SE world is setting/ proof of hope towards better today and tomorrow.
It is best suited for those karma-yogis interested in helping people have their lives – in a sustainable manner!
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