Social Entrepreneurship Takes the Main Stage

“In a city founded on vice, we are going to start with a conversation about virtue.”

These were Eric Schurenberg’s opening remarks at Inc.’s Growco Conference in Las Vegas, NV.

TOMS helped Inc kick off the 3 day conference with a Pitch for Good event. 6 mission-driven startups took to the stage to pitch their business plans and share their vision of a better tomorrow. It was inspiring to see so many entrepreneurs fill the room, eager to learn about the power of social enterprise and watch young business leaders unveil bold ideas designed to change the world.

When I started TOMS 10 years ago, nobody was using the word “social entrepreneur.” Trailblazing companies like Ben and Jerry’s and The Body Shop were at work in the world, but there was very little conversation around purpose and profit happening in culture. And absolutely no business conferences were “starting with a conversation about virtue.”

Today, social entrepreneurship is an important, timely topic. It’s not a side conversation, a nicety, or a trend. It is the opening keynote at a conference where dedicated business leaders are looking for invaluable advice and proven strategies to help their companies grow and thrive. I was honored that TOMS led the conversation last night, but the energy in the room reflected an even deeper cultural shift in the expectations of business. It is increasingly apparent that you can no longer do well without doing good.

This shifting business paradigm was an impetus for us to create the TOMS Social Entrepreneurship Fund and further catalyze the social entrepreneurship movement. Our goal is to not only invest in the next generation of social businesses, but to inspire entrepreneurs everywhere to lead with purpose and start something that matters.

Pitch for Good was an exciting first step on this journey. The TOMS SE Fund partnered with Inc Magazine to host a pitch competition, offering an investment prize up to $100,000. Over the past few weeks, our team reviewed a pool of 300+ applications, narrowing it down to 6 social enterprises who inspired us with their business models. The only requirement to compete: you must be be in the business to improve lives.

The companies that took the stage?—?Communigift, Conbody, DayOne Response, Ethic, Lucky Iron Fish, and Luminaid?—?are working passionately in many different industries and for a range of causes. What connects them is a bold vision of a better tomorrow. Faced with a tough decision, the judges opted to split the $100,000 prize between two finalists: ConBody and LuminAID.

ConBody is a prison style bootcamp committed to getting its community in shape and breaking stereotypes of formerly incarcerated individuals. Incarcerated in 2005 on drug charges, Coss Marte used his time behind bars to design a series of workouts that helped him lose 70 pounds in 6 months. In 2014, Marte launched ConBody, hiring ex-convicts as trainers and staff and providing them the financial opportunity needed for a second chance. As Marte pitched his business, you could hear the passion and dedication in his voice. He candidly shared his experience of being in and out of jail since the age of 13, unable to find work to keep him out of the system. His story is not only inspiring, but it is backed by a strong business model. The New York City-based company is eyeing national expansion, hoping to create more jobs and reduce recidivism in the process.

LuminAID is a social enterprise committed to making light accessible to the 2 billion+ people off the grid through their Get Light, Give Light model. After the Haiti earthquake of 2012, architecture graduate students Andrea Sreshta and Anna Stork designed and patented LuminAID, a compact inflatable solar lantern that can be cost-effectively distributed after disasters. The lights have been used in more than 70 countries, after disasters including Hurricane Sandy, Typhoon Haiyan in the Philippines, and the earthquake in Nepal. Founders Shreshta and Stork held several models of the portable lights on stage, and spoke passionately about a brighter future for all.

Having a higher mission does not eliminate the realities your startup will face. You can’t expect the world to allow you to cut corners simply because you have good intentions. Our two winners are not only passionate and committed, but they have powerful business models that will allow them to scale their mission and create a positive impact?—?both in the world and on their bottom line.

My best advice to entrepreneurs: view your social impact as a competitive business strategy, not an afterthought.

Here are some tips from TOMS and our 6 Pitch for Good finalists:

Build real profit margins.

If you want to create or scale a social enterprise, you must understand profit margins are an essential force to making meaningful social impact. Build a business model that is financially sustainable. Don’t use your higher mission to ask favors or cut corners. Your financial growth and social impact strategy must have a linear relationship.

Reallocate your marketing dollars to your Give.

When you are truly solving a problem or serving a societal need, your impact story becomes embedded into your company’s DNA. If your Giving is authentic, your customers will be loyal and become your marketers. They will share your story and grow your impact at a scale you could have never done through a traditional marketing campaign.

Manufacture Locally.

Not only does local manufacturing fuel local economies and support job creation, but it also helps to offset your carbon footprint, cut down on transportation costs and ultimately improve your bottom line.

Connect with People.

As you hire new team members or approach big financial decisions, look beyond the words and numbers, and understand who these potential employees or business partners are as individuals.

Employees → more than a flat resume

Business contracts → human partnerships

Consumers → empowered citizens

Giving is hard. Don’t do it alone.

To create lasting impact, partner with organizations deeply embedded in the communities you are trying to help. For years, business has been governed by laws of competition. But embracing collaboration gives you a new kind of competitive edge. When you empower your partners in their areas of expertise, you can focus on your own strengths and together, you can scale the impact.