An influential impact investor offers advice for new social entrepreneurs

“I am committed to being as helpful as I can,” which is why Mr. Solomon took a call with me. He had responded immediately. He agreed to share some experiences with this new social entrepreneur, a Twitter follower.

I had been researching, studying, and interviewing for our new social enterprise when I met Mr. Solomon. I was lucky enough to have talked to some very successful people, each of whom had been very kind. While all the conversations had been educational, I found out more and more that “social enterprise” and “impact investing” etc. They are quite specialized concepts. The idea of ​​using business as a force for good has only gained traction in the last few decades. The expertise remains concentrated among those who have spent years working in the industry.

Joel Solomon co-founded and directs Renewal, “a collection of organizations that used the powerful tools of business and philanthropy in support of long-term social solutions.” Mr. Solomon, himself a successful private financier, has affected several socially viable operations. He has empowered many people through his work and commitment to a better world. Our conversation turned out to be as specific and helpful as I imagined it could be.

I had 30 minutes on the phone. The question was the following:

“What advice would you give to a new social business? Please focus on how to attract attention and funds.”

Mr. Solomon discussed 3 key areas that he believes are critical to building a brand and raising funds. Master these, and a social business will be well on its way to legitimacy, maybe even success:

1. Access, which refers to the distribution of the network itself. How many contacts can introduce one to money, or events and circumstances that boast money?

2. Knowledge, about where the money is. There are specific institutions that offer seed capital, such as incubators and venture capitalists. There are organizations that promote equity crowdfunding. There are exhibits one can participate in, for admission to a particular audience and network. And then there are the wealthy people looking for causes to get involved with. One needs to search a lot, find these organizations and work with them.

3. Lists of possible bridges to private money. The goal is to maneuver oneself into situations where there is wealth in abundance. Know that building and executing these lists can be difficult, as the exercise challenges you to get out of your own comfort bubble. What is the best way to reach out and represent yourself in a situation of power and wealth? What could stop one? The intention is to capture as much stage and glory as possible, while, of course, championing the cause.

And of course, finally there is the “art of compromise”. Mr. Solomon briefly summarized the characteristics of successful people everywhere, such as intelligence, strategy, personality, presentation, being realistic, etc. The well-known attributes of successful entrepreneurs also play a crucial role.

35 million people, including the richest 10% in the United States and Canada, combined. “This means that 1 in 10 people have money here,” said Mr Solomon. The increase in private money for commercial ventures with social impact corresponds to a decrease in public investment due to the decrease in the reach of the government. For those looking to run socially sound businesses, it’s helpful to know that not only is there plenty of funding, it’s also a rapidly developing trend.

Social Entrepreneurship is a new and powerful movement (as I see it); one that allows people everywhere to take charge instead of relying on bloated bureaucracies and corruptible governing bodies. There will be several successful engagement models over time. The best models will generate successful public-private partnerships. There is still much to see, learn and study about this industry. But what we have set out to do is good. We will stay the course, build experience and develop credibility. Hopefully we will succeed and change many lives for the better. In any case, in a few years, we will look back and remember our first supporters and advisers.