The Pittsburgh community was well represented at the 9th-annual Social Enterprise Alliance summit in Boston on March 9, 10, and 11 (http://www.se-alliance.org/summit.cfm). This year's theme was Building Networks - Forming Partnerships - Accessing Capital, reflecting a new program designed to foster connections and deal-making for advancing the big ideas. The Social Innovation Accelerator helped further the 'Pittsburgh buzz' around sustainable social enterprise and our region, through participation in innovative networking sessions, workshops and presentations, and site tours.
The conference was a remarkable example of what happens when passionate individuals gather to address and create imaginative solutions to big problems.
Well over 1500 individuals from the US and Canada, representing every sector of the non-profit community, and just about every conceivable social enterprise were in attendance. Despite the differences in focus, missions and ventures, there was a common theme that connected all participants throughout the three-day event: In order to achieve excellence, the seemingly vast division between mission and business must be bridged.
Oddly enough, that same weekend, the New York Times Magazine's annual Money issue came out, and somewhere in the middle of the magazine was an article by two well known economists-turned-best-selling authors Stephen Dubner and Steven Levitt, whose 2005 book, Freakanomics, sold over 3 million copies and still going.
Their article, "Bottom-line Philanthropy," posited a simple, yet elegant question: If non-profits did their business based on a more traditional, private-sector business model, with incentives and rewards for example, would they perhaps be more successful and more effective in helping the individuals they were serving?
Mere coincidence? Probably, yes. But what timing!
One key distinction between organizations that were successfully sustaining their enterprises as opposed to organizations that were experiencing financial difficulties was the way in which the business of running the enterprises was conducted, and the high standards to which organizations were held.
One presenter looked out at a sea of nonprofit leaders and asked, "Do you think you have a lock on 'social good' because you are nonprofits? Do you think that because you have a mission, because you serve the public interest, that your mission trumps operating a solid business?" He went on to say that he could think of no greater public good than fresh water or electricity or telecommunications services-all public utilities that serve the public good and that all operate first as a business, which allows them to continue to serve their mission.
Another nonprofit leader, who runs a commercial bakery and café that serves as a training program for homeless men, when asked how she balances business and mission said, "I don't even know what that question means. If I'm not running my nonprofit like a business, I have no business running a nonprofit. And if my social enterprise isn't as good or better than my for-profit competitors than I shouldn't be doing it."
This attitude was a drum beat throughout the conference. Nonprofits running successful social enterprises were very serious about running successful businesses, and infusing these high standards and best practices throughout their organizations.
We also learned about the work being done to create a new kind of corporation-a low-profit limited liability corporation (L3C) that will be able to access both philanthropic support and private investment--an exciting development that will open up new structures for nonprofits launching social enterprises businesses, and new options for socially conscious entrepreneurs.
Next year's conference will be held in New Orleans in April. It's a great place to go to get inspired, make connections, and also to be reminded of how much is happening right here in our region.
“Many social programs begin with high hopes and great promise, only to end up with limited impact and uncertain prospects.”
Christine Letts, William Ryan, and Allen Grossman, What Foundations Can Learn from Venture Capitalists, Harvard Business Review, March-April 1997
Welcome to The Gauge--Pittsburgh's best source for business networking, professional development, and idea sharing for social entrepreneurs, ventures and investors. We invite you to be a part of these vibrant bi-monthly forums dedicated to advancing social enterprise in this region. Click here for a complete schedule of Gauge events and sessions.
We've Moved!
Come visit us at our new address: Social Innovation Accelerator 1 Gateway Center 420 Fort Duquesne Blvd Suite 1850 Pittsburgh, PA 15222 P: 412.325.2202 F: 412.325.2206
"...if my social enterprise isn't as good or better than my for-profit competitors than I shouldn't be doing it..."
Find out more about this and other comments and ideas at the Social Enterprise Alliance Summit (SEA) 'Wrap-up Report' by the Accelerator. Click Here.
