Harsh Truth About Social Entrepreneurship
Social entrepreneurship has became another business to make money. After participating in couple of good competitions and challenges this is what I have realized. Here is why:
- You will find a few startups everywhere… And yes, they would win everywhere.
I once saw a startup who has already received a total funding/grant of 4 crore (it was mentioned in their pitch). After that, they have won 3 more competitions which would add up to around one more crore. They are running for past 4–5 years and they haven’t developed a sustainable business model or strategy yet. I seriously don’t think they would ever concentrate on generating income via their startup when they are generating so much from such competitions. Their business model is perhaps to participate in all competitions, keep winning them and add that title to their pitch deck to win the next one.
- I don’t think judges in these competitions are qualified enough.
Giving an example: a lot of startups are coming up with waste to building material using a binder. Well, take worn out clothes add fevicol or gum(binder) and there it is!!! I just made building material from waste :)
I hope you got the sarcasm. Anything can become building material if you are adding binder to it. Important questions like leaching, VOC emissions etc were never asked.
I hope there should be a cap to amount of prize any startup could win through competitions. No, this won’t limit their growth… c’mon 4 crores!!! and still counting, I don’t think a few lakhs can help them in any significant way when crores of money couldn’t. Also, these startups who win everywhere have a lot of support pouring onto them from all directions be it government, industries or institutes. If they really want more money, they can actually pitch to any of the above agencies for more grant. However, here they have to justify things and will be scrutinized. That’s why easier way is to participate in competitions.
I am anticipating a lot of you might be thinking many startup competitions have a cap on how old a startup is allowed. This can never be a problem when moto of most startup founders is “fake it till you make it” (it is being promoted also by many people). I was once in a workshop where we were given task to make our business models canvas. I was busy in my stuff when a guy came and pointed towards my BMC and froze for a few seconds…of course I had to look up and see what he is upto…So this guy was making a pose because the event photographer was taking my picture while I was making BMC. He did the same thing throughout the workshop and yes, this dude has given TEDx talk (see ‘faking it’ is doing good to the deserved ones).
So coming back to the topic, how can one not be an old startup?
Make a new one…
Take a new company name. That would cost maximum 10k but would perfectly fit the business model (of competitions money).
How it impact others?
I think it is a very bad news for new social and environmental startups.
How small startups which might have small localized impact will be supported?
They don’t have much connections in institutes, industries or government. One best possible way is through these competitions and challenges but they are being taken away by giants. Looks like giants are not only in cooperate world but in social startup community as well.
I have many incidents to share but let’s keep them for some other time.
Thanks!!!
