Social Innovation: The Real Economic Stimulus
Recently I heard a convincing case that the route to economic recovery will not be realized by bailing out large, connected, established industries. Rather the answer lies in social innovation.
There is much more to this approach than simply coming up with a new or unorthodox idea. To reach success, it involves creating a product or service that benefits the community as a whole or addresses important social issues.
With the right support, entrepreneurs are perfectly positioned to discover, build and launch new, innovative ways of dealing with pressing social needs like the aging population, homelessness, and education.
During my professional career in finance (Wall Street and financial services) and mobile marketing, I've had the good fortune to be involved in many innovations involving the latest technology, sometimes years before any mainstream audience was ready for it.
These types of advances were helpful, interesting, and even thrilling for early adopters of the technologies, but many lacked relevance to the general public or didn't appeal to consumers' passions.
If entrepreneurs spent more time analyzing pressing social problems and embracing technological or business solutions that address them, they would experience tremendous professional and personal growth.
One example of social innovation that exemplifies building business while supporting a cause is TOMS Shoes, and American footwear company based in Santa Monica which also operates a for-profit subsidiary, Friends of TOMS.
Founder Blake Mycoskie donates a pair of shoes to children in developing countries for every pair the company sells. In just four years since the launch of his program, TOMS has donated more than one million pairs of shoes to children in need. As you can imagine, his company has experienced tremendous growth during
this time.
Another example was experienced shortly after the devastating earthquake in Haiti, when celebrities and nonprofits called on a new generation of donors to contribute via text messaging. Incredibly, tens of millions of dollars were raised in mere days – mainly from new, young philanthropists willing to contribute $5 or $10.
This successful campaign was not possible 10 years ago. A group of dedicated mobile industry veterans knew it was possible to use text messaging in a new and beneficial way, and took action to create the infrastructure so that it could be used effectively when it was most needed.
Consumers are becoming increasingly cynical of big businesses and more compassionate toward social causes, thus affecting their loyalty to specific brands. It's the perfect time for entrepreneurs to embark on their own social innovation.
Here are four steps to help get you started:
- Identify those needs that are most important to you and your customers. Make a list of the social issues that you care about. Ask your customers where their interests lie.
- Align the cause with your product or brand. Make it clear how you're helping address a social need.
- Look for partners who share your passion. Are there other entrepreneurs with whom you could partner to strengthen your impact? Are there existing nonprofit organizations that you could support through your business' social endeavor?
- Track your progress and share with your customers. Letting your customers know their collective impact increases goodwill.
Don't let funding stand in the way of launching your social innovation. Your employees are a logical and likely source of supporters, as well as friends and colleagues who may be looking for just the right cause to embrace. Plus, there are resources like the Pepsi Refresh campaign, which offers grants ranging from $5,000 to $250,000.
There has never been a better time to invest in social innovation. Small-business owners are the powerhouses of the American economy. Together we can have greater impact on the pressing needs within our communities than any government program could ever deliver.
About the Author
Founder of EdRover Inc. and president of DDX Media
Tania Mulry is the founder of EdRover Inc. and president of DDX Media. She lives in Stevenson Ranch with her husband and three boys. For more information, visit www.edrover.com.
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