Thanks for your question Violeta. I cannot speak with authority for social enterprise in general, but I can discuss the challenges to success that we have faced. The below may resonate with other social enterprises also.
The burden of being first:
A social entrepreneur is often engaged in markets that are completely undeveloped and thus will suffer from the burden of being the first in a given market. This burden can weigh on all aspects of the business, from supply to capitalization, to marketing and sales.
A supply example: we started selling solar products to rural homes over 4 years ago. At the time, no low-cost, off-the-shelf solar products existed. We were forced to assemble our own products; our low volumes and the lighting technology available at the time resulted in our costs being far too high to achieve mass-market uptake.
Today our market has developed significantly and there is a range, albeit limited, of low-cost, off-the-shelf solar products developed specifically for our market that we can now source.
Capitalization example: When we first started trying to raise capital for our enterprise five years ago, investors were intrigued, but there were no precedents on which to base our assumptions and projections. We were talking about an exciting plan, and we sounded credible. But the complete lack of other examples of investments in this market paying off successfully forced us to proceed without investment capital.
Marketing & Sales example: Although the supply side has improved, we still struggle on our marketing/sales side with the burden of being first in our market in Rwanda. We have to work and spend (sweat and bleed) to sensitize the market on the advantages and viability of using solar to meet lighting needs. We are fighting against an entrenched technology that literally everyone is familiar with: kerosene.
This is an expensive and time consuming battle. Since we are the first in this market in Rwanda, it will be our sweat and blood that will build this into a viable and profitable market. Others will be able to come along after us and achieve success with a small fraction of the time and money we have invested. This, for me, is the chief purpose of social enterprises: To establish a viable market for addressing a social burden. If this becomes the case in Rwanda, the hard work will have been well worth it.
After pooring thousands of dollars and years of his life into setting up rural energy businesses, it's about time this young man got some recognition and support.
A brilliant venture in every sense of the word. Dargan is illuminating lives in rural communities with safe, positive energy. His ideas have that critical combination of simplicity and pragmatism, with the potential to make a dramatic impact on family life as well as local industry. Vote for Dargan.
Comments
Dear Samuel Dargan,
According to your experience what are the main barriers or challenges so that social business model can thrive?
Cheers,
The Changemakers's Team
Thanks for your question Violeta. I cannot speak with authority for social enterprise in general, but I can discuss the challenges to success that we have faced. The below may resonate with other social enterprises also.
The burden of being first:
A social entrepreneur is often engaged in markets that are completely undeveloped and thus will suffer from the burden of being the first in a given market. This burden can weigh on all aspects of the business, from supply to capitalization, to marketing and sales.
A supply example: we started selling solar products to rural homes over 4 years ago. At the time, no low-cost, off-the-shelf solar products existed. We were forced to assemble our own products; our low volumes and the lighting technology available at the time resulted in our costs being far too high to achieve mass-market uptake.
Today our market has developed significantly and there is a range, albeit limited, of low-cost, off-the-shelf solar products developed specifically for our market that we can now source.
Capitalization example: When we first started trying to raise capital for our enterprise five years ago, investors were intrigued, but there were no precedents on which to base our assumptions and projections. We were talking about an exciting plan, and we sounded credible. But the complete lack of other examples of investments in this market paying off successfully forced us to proceed without investment capital.
Marketing & Sales example: Although the supply side has improved, we still struggle on our marketing/sales side with the burden of being first in our market in Rwanda. We have to work and spend (sweat and bleed) to sensitize the market on the advantages and viability of using solar to meet lighting needs. We are fighting against an entrenched technology that literally everyone is familiar with: kerosene.
This is an expensive and time consuming battle. Since we are the first in this market in Rwanda, it will be our sweat and blood that will build this into a viable and profitable market. Others will be able to come along after us and achieve success with a small fraction of the time and money we have invested. This, for me, is the chief purpose of social enterprises: To establish a viable market for addressing a social burden. If this becomes the case in Rwanda, the hard work will have been well worth it.
Sincerely,
Sam Dargan
Best of luck - one more vote added.
Well done Sir. After careful research and deliberation amongst all the entries, your company has garnered my vote.
Sincerely,
Daniel O'Harra
After pooring thousands of dollars and years of his life into setting up rural energy businesses, it's about time this young man got some recognition and support.
Good luck, Sam!
Maurice
A brilliant venture in every sense of the word. Dargan is illuminating lives in rural communities with safe, positive energy. His ideas have that critical combination of simplicity and pragmatism, with the potential to make a dramatic impact on family life as well as local industry. Vote for Dargan.
Sam--
You know you have my vote. You are there, in Rwanda, yes, spending your sweat and blood, and we know it will all be worth it.
Post new comment