Why for-profit social ventures hold the key to a brighter future for India and the world
For anyone who watches the news, it is clear that the world is crying for solutions. From the perils of climate change, to the continuing lack of healthcare and education in low income places of the world, to the ever present problem of poverty and food insecurity, the world still struggles with problems that a modern world with global supply chains shouldn't struggle with, ideally.
Fortunately, we're also in an era defined by groundbreaking innovation and near constant disruption. Industry 4.0 has ushered in an age of unparalleled synergies, technology connects us like never before, and our understanding of ourselves and our planet grows deeper every day. Yet, the answers we seek often remain out of reach due to one significant hurdle: economic viability.
That's the rub. We know we can solve climate change through sustainable energy solutions, resource conservation technologies, green infrastructure projects. Battling poverty and unequal wealth distribution is about putting our weight behind financial inclusion initiatives, micro-entrepreneurship platforms, affordable housing solutions and other region specific solutions. Edtech platforms hold the promise of democratising education for everyone, everywhere. While efficient agricultural practices, food waste reduction initiatives, sustainable food production technologies combined with strong supply chains can help us make a real dent in the problem of world hunger.
Limits of the Non-Profit Model
The trouble is that many of these solutions don't stand on their own. Traditionally, social impact has been pursued through the non-profit route, better known as the NGO model. But is this the most sustainable path? Non-profit organisations rely heavily on grants and donations, leaving them vulnerable to fluctuating funding cycles. During economic downturns, precisely when these solutions are most needed, funding becomes scarce as charitable donations wane and grants dry up.