Wednesday, May 2, 2012

'Transformational Entrepreneurs', the next big thing?

Interesting article in the Harvard Business Review about 'transformational entrepreneurship', a term that designate companies that combine the scalability of technology with the social purpose of social entrepreneurship. The economic impact of the Googles and Amazons can hardly be overestimated, so just imagine what would happen if they had a goal of doing social good ! (okay, some might argue that they are already doing social good, by democratizing information or by providing jobs...)

Max Marmer, the author of the article, puts the nicely in a graphic:


It doesn't take a genius to see that the 'transformational entrepreneurship' segment is relatively empty at this stage (unless you want to put institutions like the World Economic Forum in there, or -why not- TED talks), and hence might constitute an opportunity for companies.

Max then takes this segmentation one step further, expanding it with companies and institutions that have a negative effect on the economy or on society:


I know this is an ideation, but it raises some questions as far as I'm concerned:

  • Why would the 'Transformational Non Profit' institutions have a negative economic impact? I know of a couple that have a very positive one, not for themselves (since they're non profit) but for the economies of the countries in which they operate, or by the very mere fact they they provide employment. The segmentation makes sense if 'economic impact' is purely seen as 'profit making', but this reduces the scope of the picture;
  • Max seems to indicate that Transformational Entrepreneurship is the next big thing to solve some global challenges. They surely are, but they're not the only ones. Some challenges are very local by nature, scaling them globally might hence produce a negative effect. Also, social entrepreneurs might wish to remain at smaller scale but can lead by example, inspiring others to do the same. The movement or the idea can do global good, while the companies executing them could remain small. The result would be equally beneficiary as for the Transformational Entrepreneurs.
Nevertheless, it is a very appealing idea. Imagine a Google or an Apple focusing on social innovation -at an equal profit. It's not at all a lunatic thought, they have the means and the power to do so....

1 comment:

  1. Mollie Mossman, CPA, CMA, MBA, RE BrokerJuly 19, 2012 at 3:06 PM

    Hey, Frederic, good comments. You may want to check out the just released Fixing the Future documentary movie!

    In Fixing the Future, host David Brancaccio, of public radio’s Marketplace and NOW on PBS, visits people and organizations across America that are attempting a revolution: the reinvention of the American economy. By featuring communities using sustainable and innovative approaches to create jobs and build prosperity, Fixing the Future inspires hope and renewal in a people overwhelmed by economic collapse.

    More at: FixingTheFuture.org

    Mollie Mossman, CPA, CMA, MBA, RE Broker, Texas USA

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