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Posted On 04.17.09

Let’s be real. When you think about a successful entrepreneur you instantly imagine someone like Donald Trump or maybe even Paris Hilton: eccentric, self-centered and obsessed with luxury. Over the past few years, many people have questioned why I so badly want to be an entrepreneur. They ask why I wouldn’t rather just work for a big company, get perks, and leave my work at the office after 5.

Today I had a little moment that made me remember why I want to be an entrepreneur.

Despite my analysis of the long-term costs of having a Starbucks addiction, I must admit I frequent it a bit more than I should. Over the course of my visits, I’ve started to get to know a fabulous Barista named Jackie.

Jackie is a young single Mom who is very thankful for her job at Starbucks. She’s said that the benefits are better than any other part-time job she has found and she enjoys the people and loves working for the company. Jackie recently went back to college to become a nurse.

Every time I see Jackie, I ask her how school is going and how her son is. I was sad when she told me a few weeks ago that she had to drop out of school due to time and financial constraints.

I immediately thought about all the working Moms I know. Then I thought about what I would do if I was a single Mom without my college degree and without my current full time job with benefits.

I told Jackie that I was going to get thinking. Jackie lights up the whole Starbucks every time I’m there. Her personality and passion are contagious. I know that that there must be a way for her to make some extra money from home.

It turns out I’ve stumbled upon a few opportunities to work with some clients on their social media management and strategy. And guess what? I will need some help, and the first person I thought of to help out was Jackie.

Of course nothing is finalized yet, but the point of this story is that had I not stepped out to take on freelance work, I would not be able to touch another woman’s life in this way. By owning a business, I can hire other women and empower them to learn new skills and be financially self-sufficient.

One of my favorite quotes is “Give a man a fish and you have fed him for today. Teach a man HOW to fish and he can feed himself for the rest of his life.” My motivation behind being an entrepreneur is the ability to empower other women to achieve their dreams and become confident and self-sufficient in the process. I’m hoping that over time I will get to meet and work with many women like Jackie who inspire me to keep on trekking!

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Comments

Paul Day
04.19.09

I hate to burst your bubble, but sympathizing with a "commoner" does not qualify you as a good person. Those of us doing the real work of making the world a better place (in the public and nonprofit sectors) are making the real sacrifices it takes to ensure broadly shared prosperity. What exactly are you sacrificing? Social media doesn't make the world a better place. If you need to justify your decision to enrich yourself (“entrepreneurship”) then it probably isn’t morally worth it.

04.19.09

My point was not to suggest that social media is changing the world (although that is another great topic for debate!) but rather to suggest that entrepreneurs can provide work for others through their businesses. This work, whether it be producing widgets or learning to run a company, allows others to feed their families and learn skills which they can use to provide more opportunities for themselves and their families.

What type of non-profit work do you do?

It is surprising to me that some see such a huge divide between social entrepreneurship and for-profit entrepreneurship. Many for-profit companies donate millions of dollars each year to social entrepreneurs like yourself and great other causes.

Paul Day
04.20.09

A couple of points:

I'm not a social entrepreneur and I seriously doubt anyone actually working in the nonprofit sector thinks of what they do as "entrepreneurial" - though a few aspiring executive directors might (the key word here is "aspiring"). Larger nonprofits in particular are highly bureaucratic structures, usually top-down and focus less on taking risks due to funding pressures (not very entrepreneurial).

I'm a professional fundraiser for an organization that provides comprehensive services to individuals experiencing homelessness. I can't see how we could operate as a for-profit. Most of our money comes from public sources, despite a rather robust fund raising program and the newspaper's designation as the city's best nonprofit organization.

Social entrepreneurship and the nonprofit philanthropy are two different things. A social entrepreneur would be someone like my fiancee's uncle, who invented an affordable mosquito net that will help quell malaria in Africa. He's doing it for profit, but also happens to be making the world a better place by innovating. I don't give him much credit for the "Social" part, because as an economic libertarian he could care less about poverty in Africa.

In the early 20th century, big corporations learned that they had a major PR problem. They were viewed as greedy and callous by their workers. They were largely complicit in devastating communities and the environment. To quell the uproar around corporate callousness, philanthropy was born. And to this day, it is an expectation that as a company you give back to the community. Does this legitimize corporate power or market-driven approaches to social amelioration? No. Most of it doesn't work, despite popular opinion.

Corporate philanthropy today is mostly centered around event sponsorships, where they get something in return. The rest of corporate philanthropy is driven by community reinvestment laws (in the case of Banks) and PR value (in the case of Wal-mart and Exxon).

Just so you know, I'm not entirely skeptical of the idea of "social rehabilitation through work". I think pulling more single parents into the workforce and off "Welfare" has positive effects, as long as their children are being cared for and they are being paid a living wage. Typically, entrepreneurs like yourself lack comprehensive benefits including health insurance, so I wouldn't be encouraging a poor single parent to abandon steady work with benefits for the glory of self-employment.

I am skeptical that the concept of social entrepreneurship somehow legitimizes a market-based approach to combating social ills. Keep in mind that the proliferation of nonprofits and public-sector programs is largely the result of market failures. There are zero examples of countries that developed on a model where private business delivers the larger share of public goods. Those advocating for such models are really ignoring history (where it was the public sector that kept economic growth sustainable).

Despite what nonprofits (and not-for-profits) are doing, we need a highly progressive tax structure and substantial public investment to end poverty, reduce the impact of climate change, improve our education systems, and clean up the environment. Entrepreneurs can create jobs, but so can the government - and more effectively and thoughtfully.

Peter
04.21.09

@Paul: Glad to see you think so highly of yourself and what you do. It's interesting to me that you believe others would find your self-righteous comments virtuous. They're not.

What exactly is meant by "there are zero examples of countries that developed on a model where private business delivers the larger share of public goods?" Aren't public goods by definition ther opposite of private? Do you honestly believe innovation comes from the government?

Paul
04.21.09

Yes, innovation comes directly from the government. The private sector actively stifles innovation through the enforcement of property rights and monopolization. The internet is the most obvious example of innovation that occurred almost entirely within the public purview. I can list numerous others. I question any major example of true innovation that followed a route of entirely private investment.

I never said anything about thinking highly about what I do. In fact, I was saying quite the opposite. What I do is not entrepreneurial and I find the concept that one can "do good" through profit quite pathological. Even being within the private nonprofit sector, I'm skeptical that we're really making an impact whatsoever. It's more efficient for the government to provide social services directly. As far as social movement theories go, Resource Mobilization is the least effective mode of social activism.

Peter
04.21.09

I just read your comment and had a spit take. Since my computer and internet connection don't havce a goverbnment logo on them, please provide the other examples of public innovation you are referring to that might clarify.

Again, I do not understand what is meant by "there are zero examples of countries that developed on a model where private business delivers the larger share of public goods?" What public goods are you talking about?

Paul
04.21.09

Public goods are anything that we need to survive and thrive, whether it be water, electricity, health care, transportation, ect. Most of these things have a high degree of public funding and regulation. If they didn't, we'd resemble a third world state (and some places in the United States in fact do, Mississippi comes to mind). The "social entrepreneur" movement really takes it for granted that the delivery most public goods is not profitable, therefore they can't exist within a capitalist economy without substantial state support.

Taking broadband internet access as one example, as it being a largely private good in this country (though again, developed with substantial public support), we rank among the bottom of OECD countries in access to fast and cheap wireless broadband networks. In fact, it is actually the private telecom sector that is stifling innovation, because the technology already exists to have universal wireless broadband. The reason it hasn't been universally implemented is because it threatens their profits - telecom companies dash at the thought of the Internet being a free public good. Cell phone access has a similar and even more tragic story.

I can go on and on with more examples. Airplanes? We talk about AIG, but the airline industry is actually one of the largest recipients of welfare in the United States. However, being that the airline industry is a private corporation, we as consumers still have to pay for their profits... In fact, if you want to know the "problem" with airlines, it's the fact that they've been deregulated.

Capitalism produces little of public value. Twitter? Whatever...

Peter
04.21.09

Paul, you have completely confused innovation with regulation.

All of the services (utilties) that you mention would be available to those that could afford them. The government regulates them to provide access to all irrespective of profit. Indeed, the cost of broadband and cable services and electricity ectc. is as high as it is in urban areas (where it can be provided cheaply due to scale) becuase the government requires that it be rpovided to rural areas as well. Do you really think running miles of power cables to light one house in the middle of nowhere is profitable? We all pay for that.

As for Airplanes, electricity, water etc., you apprently have never heard of the Wright brother, Edison, Pasteur. . . I haven't any idea where you get the idea that innovation comes from the government. The R&D invested by pharamceuticals is breathtaking. . . and alsmost entirely private. Most Healthcare is delivered privately in this country (when you say "this country" I don't know what country you are writing from, but the time stamp indicates it is not the U.S.). The that the FDA regulates drugs is beside the point.

Simply put, regulation is not innovation. Capitalism produces little of value? clothes, computers, cars . . . whatever?

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