Capturing a Market with Social Innovation

I think doing business for social innovation and keeping a profit is a feasible idea that has room for expansion, especially into developing markets. As we can see through the articles on Coca Cola’s solar push into Africa and making a profit in West Africa, business can and does succeed in areas where convention says otherwise. To me, the idea of creating a vested interest to use and maintain a tool through a transaction (purchasing) is very powerful. When thinking of the things that I have purchased and the free things I have accumulated, I put my trust in the goods that I have paid for. There is a separation that I make of quality and worth because even if I don’t explicitly think it, I am always questioning how good something could be if somebody could afford to give it away. You can imagine how powerful this bond could become to someone who has little to spend and thoroughly plans their expenses.

Accessing these emerging markets will not only take careful planning of what you can offer, but also of the context in which you are offering it. Brands like Coca Cola have such recognition and such reputation that they don’t need introductions. However, if I am going to sell a water pump like we saw in the video, I’m going to need to look into partnerships and local business leaders to get me access to an area. In the context of the scalers and of deciding whether to grow or partner, I would certainly choose to partner and develop the business through methods that the customer base and local business are familiar with.

Will multiplying the impact of your business leave you better off than growing it? I think it depends on your values and whether or not you can find a way to mesh them. If social innovation and profits are compatible, is there still room for looking past the accounting records and valuing the increase in quality of life? How thoroughly should you seek to protect your intellectual property and market share from competitors? I would be torn, but I think that at the end of the day you have to let go of profits for the greater good if it comes down to it.

Sources:

Bloom, Paul. “How to Take a Social Venture to Scale.” Harvard Business Review. 18 June, 2012.

Tripp, Kimberly Dasher. “It’s Not All About Growth for Social Enterprises.” Harvard Business Review. 21 January, 2013

Ungerleider, Neil. “Why Coke is Bringing Solar Power to Rural Kenya.” Fast Company. 4 June, 2013.

Whalan, Hugh. "How Misinformed Ideas About Profit Are Holding Back the World's Poor." Fast Company. 8 May, 2013.