Philanthropy Impact Magazine Summer issue: Feature from our Collective
I am proud to share Philanthropy Impact Magazine published my piece in their 3-part summer series. “Supporting Social Entrepreneurs Is Integral To Supporting Social Change: A U.S.Perspective” covers why it’s essential to fund MSMEs (micro, small, and medium enterprises) to achieve the Sustainable Development Goals (SDGs). It’s important to connect social entrepreneurs and impact investors and essential to creating an equitable and inclusive business world. Please read and share, and let me know what you think!
Here’s some extra context on the SDGs and what Philanthropy Impact won’t talk about.
My original pitch sent to Philanthropy Impact’s call for submissions said:
How do leaders create businesses “for Good” by Leading with Purpose? How can entrepreneurs and small businesses contribute to and achieve Goal 8 (better workplaces) & 10 (reduced inequalities) without funding? Purpose and passion can only get you so far. The idea that you just need to pull yourself up by your bootstraps has been debunked.
And, if you are focused on people and planet first, finding funds for your social enterprise start-up is tough. The speed and steps at which funding gets to startups is inherently bias, favoring those with generational wealth and privilege. Finding support is so tough, time-consuming, and expensive.
To be totally transparent, I was surprised they took it with so few revisions. Our Collective members are not big fans of philanthropy’s control over funding. The same can be said for the SDGs. More popular abroad than they are in the U.S., the SDGs are more of a symbol one cares about “people and planet.” Following the SDGs signals to others you are into “business for good” and philanthropists love that stuff.
The high net worth (HNW) individuals that Philanthropy Impact magazine targets want to make an “impact” but their motives and understanding of what that means remains unclear. Aligning with the SDGs is similar to putting a Black Lives Matter sign on your lawn. Sure you care, but are you investing in real change? Are you disrupting systems or simply branding social impact while upholding exploitative institutions.
“Current philanthropy leaves social entrepreneurs out of big funding initiatives. There are huge missed opportunities to fund innovations from marginalised communities because they are lacking a 501c3 designation for their organisations. It is time to rethink “qualifications” as well as risk in funding. The speed and rigidity of the regular grant cycle are incongruent with the pace of social innovation. We need to help communities and under-represented innovators now, to ensure a better future. Every major economist and SDG research hub will tell you, supporting mission-driven businesses is essential for a post-pandemic recovery. One question remains: what can you do to transform the world and create an equitable and inclusive society?”
Unfortunately, the disconnect between what startups need and how big money is doled out remains a chasm. People like the Gates Foundation know the danger of actually doing the work. An ethical economy means funding us faster and eventually making philanthropy and HNW individuals obsolete.
That said, we have a long way to go before the mega-rich are going to simply cede control and hand over their fortunes. In 2021 and beyond, let’s encourage investing in social startups early, often, and with fewer restrictions. Moving money is the key to creating economic equality. Hopefully, this article will get the people with the power to move it along.
