Social ventures are becoming more present in our lives today as they can produce the vast social, cultural and environmental changes, by prototyping new and innovative solutions that can solve the existing problems. When it comes to the traditional ventures and social ones, there are three characteristics we must note about the latter ones: a positive impact on the society, selling of a service or product that creates the social impact and the ability of self-sustainability without depending on any donation and funding. Combining all of these, you get the point why these are so popular.
Why these ventures are in huge demand?
Before we say anything, it is crucial to explain that the voice of society has never been more important. Therefore, you can conclude that the product or service that influences society in a positive way is more likely to be promoted and praised than a one that performs well for a certain part of individuals. Now, we are not saying that traditional companies do not work, but we rather emphasize the enormous capacity of influence on the society of a company that solves a small problem in society.
The first thing we must understand is that the way of conducting (successful) business has changed when we compare to the one that was successful some 20 years ago. There are many reasons for this, literally. But let’s look at it in this way: social ventures perform well because people like to praise reasons why they do what they do. Once the company that helps the preservation of environment shows up, people want to join it, use its products/services and be the part of social/environmental changes.
At the same time, companies produce profit by selling the product/service, achieve social/environmental responsibility and become known for its influence in the business world, which is exactly what a successful company wants. These companies have bigger responsibility and influence the social/environmental changes much easier when compared to traditional ventures. Because of this, a company will create a cool and positive brand image, while in return receives customer loyalty and becomes a stable company with the constant circle of loyal fans. For these reasons, people prefer these startups and that is why a lot of people want to embark on the social venture adventure.
The social influence and millennials
The concept of millennial will change the global economy world and by 2025 we can expect that at least ¾ of workers will become millennials. The millennials are basically looking for the meaning of their work and how the work they perform impacts on society. And they are exactly the ones who are paying mostly to see the sustainable services. As the social impact is these days more expensive than the quality of product, the social ventures will definitely have bigger opportunities for selling their products. This also means that people will be very happy to join such companies.