Regardless if the idea is for a for-profit business, a
non-profit business, or a social enterprise, funding is highly competitive and difficult
to come by. This can be especially true
for social enterprises since they are trying to reach both the funders who normally
invest in for-profits and the foundations and philanthropists who generally
donate to traditional non-profits. In a
sense, a social enterprise is a hybrid of these two models – they can tap into
both the philanthropic capital and the commercial capital markets.
As social enterprises
become more visible in the public eye, organizations have started to pop up
that support this trend. These
organizations offer financial, educational, and administrative support for
potential social enterprises. They
follow Chertok, Hamaoui, and Jamison’s advice in the article, “The Funding Gap,”
By providing short-term support including tool kits, incubators, and education
and training. They also provide
long-term support by teaching entrepreneurs about the market, government
policies, and economic efficiencies.
Pittsburgh has one of these organizations – the Idea
Foundry. It is a “non-profit innovation
acceleration and commercialization organization focused on creating
high-potential, innovation-related jobs in the life sciences, entertainment and
education, social enterprise, advanced materials, and water sectors.” While the organization invests in several
kinds of businesses, it has a program specific for social enterprises. This program is called InterSector
Accelerator for Social Enterprises. Ten
social entrepreneurs are chosen each year for the program who receive financial
assistance up to $10,000 as well as the full force and expertise of the Idea
Foundry staff. InterSector runs what the
call a “Proof of Concept Lab” for these ten entrepreneurs each year. Through this process, they test the viability
and the staying power of each entrepreneurs’ idea. They then assist them with building their business
model. They do all of this by examining
market research to determine areas for impact and revenue. The program is meant to be low risk since it
provides a thorough assessment and guidance needed before an entrepreneur
begins to poor more money into it. Each
participant receives 12 weeks of intense support, assistance, and advice as
well as up to $10,000 in startup funds.
Successful candidates are then encouraged to apply for the
Transformation Fellowship Program which provides a year of support and up to
$100,000 in funding. The program has
many success stories including Farm Truck Foods, Thread, LLC, and Optimus
Technologies. It is a great resource for
Pittsburgh entrepreneurs. If you have an
idea that you think they could help, check out their website and apply now!
InterSector’s Vision and Mission as stated on their website:
Vision
“InterSector is helping to generate the next wave of social
enterprise companies creating sustainable economic opportunity in Western
Pennsylvania and measurable social change locally and globally. We aim to
increase the number of high-impact, socially-responsible businesses operating
in Western Pennsylvania, and extend the reach of this business model throughout
Pittsburgh and beyond, because we believe business for good is the future.”
Mission
“InterSector, a program of Idea Foundry, funds and guides
the creation of early stage social enterprise companies who develop innovative,
efficient, market-based solutions to the world’s most pressing social and
environmental problems. We help entrepreneurs take the first steps toward
building the foundations of scalable businesses that create social good and
profit, by helping them prove their concept and validate their business model.
InterSector operates out of Pittsburgh, PA, and is expanding its services
globally through projects in China and Mexico.”
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