NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

By Dana Brakman Reiser

Social enterprises aim to use business methods to solve social problems.¹ As with any venture, they need both capital and confidence to achieve their ambitions. But pursuing these dual needs can be particularly difficult for social enterprises to reconcile. Commercial operations and access to investment markets can unlock resources to expand organizational scale and magnify social impact, yet adopting these tools of business raises concerns that social enterprises will prioritize private gains over social objectives. Social enterprises must allay these fears, persuading funders, employees, consumers, and the public to trust that their social commitments are genuine and durable.

Photo courtesy of Andrew Moca.