If you are not a frequent reader of my work, then let me tell you what I do for a living. Currently, I am working in one of the big international organizations promoting social entrepreneurship. I meet with many leaders who own a social incubation business as part of my work. I have seen many of them and the different styles of management they take on for their businesses. The social incubation business starts with a vision and a small team of passionate individuals who want to change the world. However, after a while, I see things going wrong for many social incubation businesses. There is a trend and some symptoms to watch out for. Let’s dive deeper into these today and talk more about the rise and fall of a social incubation business. I bet you will love the stories I have about this. Also, I am reminding you of some business perks at Albusi for your business.
Here’s what you will skim through for the next 2 minutes.
The Story: A Social Incubation Business
Before I tell you my story about a specific social business, let’s first agree on the term’s definition. This is because this could refer to different ideas. In my context here, I am referring to organizations that support the development of social enterprises. Another similar term here is social impact incubators. Both are the same. Some of the common services of this type of business include mentorship, network opportunities, and financial assistance. An example of a well-known social impact incubator is Ashoka.
Since we now agree on what I am addressing in this article, let me tell you my story today.
In concept, social incubation businesses are powerful tools that call for and strengthen positive change. So, assuming this, they must be doing a great job and attracting more people to their work every day, right? Well, this is not entirely true. I saw the work of the most famous social impact business in a country in Asia; I thought that I would see the most well-established business in the region because of its reputation. I was disappointed. Despite the great work this business has completed in spreading social change and positive impact, it started to decline. Their complete fall is near.
The Rise And Fall Of A Social Incubation Business
Let’s get more into the specifics here.
Just an important disclaimer before I set off and tell you more about this: all that I list here is based on practical experiences managing projects and interacting with social entrepreneurs globally from different fields in my own context.
The Rise
Social impact businesses are doing well; this is their main drive and reason for existence. Initially, when the theory of change of the businesses they aim to provide is still nurturing, they provide maximum support from funds to anything else they need. It’s everything a rising social enterprise dreams of. This is not an exaggeration; this is the truth. Social incubation businesses become family to the staff and teams of social enterprises. They attend events, meetings, and workshops together to set a strong foundation. What’s the result of all this? Social enterprises generate both economic value and tangible social impact, everything they ever dream of, improving the lives of many.
The Fall
Now, cracks start to show. The journey comes with bumps, too. Incubation businesses begin to withdraw, which is very typical; there is no blame here. Their work is done (I don’t wholly agree with this, but it’s ok). Then, what happens to social enterprises? Speaking the truth? It depends on the leader and owner of the business. If, since day one, the entrepreneur leading the social enterprise planned for the departure of the incubator and already had a roadmap to follow, then I don’t worry a day about it. If the opposite happened and senior management relied entirely on incubation businesses, then I usually kiss this social enterprise goodbye. You start seeing all the challenges that you never worked on addressing on your own. Examples of these can include funding constraints, scalability issues, internal conflicts, and, of course, impact measurement.
Engaged and aware funders of a social enterprise will react differently. Instead, they will diversify funding from day one, embrace new networking and collaborative channels, and build a more flexible model of their business to adjust to any changes.
Some Perks From Albusi For Your Business
I hope this has given you some idea about the support of incubators to social enterprises and how things can work. If you want to read different arguments and related topics about this, I have some for you. One on angel investors for nonprofits, a guide to keeping investors for your nonprofits, and a last one to mix business strategies to have a sustainable model for your social enterprise.
As for what Albusi can offer for both your social enterprise and social incubation, we have many downloadable pitch decks and business plan templates on the website that serve as excellent guidance to prepare your business. We also build your own! The Albusi team can craft a one-of-a-kind pitch deck just for you! This is another exceptional service to entrepreneurs that you should check out. You will get the chance to have your own branded pitch deck for your social incubator.
Also, if you need to talk more about your idea, you can just get in touch with one of our freelancers. They will help you with everything you need to plan for your business. They are great at pitching and will help you with the tweaks you need to pitch your idea to others, too.
Happy learning!
Meet The Author Of This Article
I’m Jenny Ayman, a project manager in the development field with specific knowledge and experience in capacity building and entrepreneurship programs. I aspire to transfer the hands-on experience I gain in my professional career through writing.
Also, if you need help planning your business, I recommend checking out some of our freelancers’ business plans or pitch decks!
