An extended interview after BCIS Avenir Business Competition
The 7th BCIS Avenir Business Competition has ended in late April with 11 teams pitching their innovative social enterprising ideas to business professionals excelling in angel investment advisory, technological innovation consulting, advertising, laws, and many more. As we are committed in encouraging our young adults in practicing entrepreneurship, we observe an evident ambiguity in the common perception of the competition topic, “Social Enterprising”.
Social Enterprising, as provided by the Avenir Organizers,
“A social enterprise or social business is defined as a business with specific social objectives that serve its primary purpose. Social enterprises seek to maximize profits while maximizing benefits to society and the environment.
While most projects fulfil the former definition with some ambitious “social objectives”, the consideration in how to and how much profit would be gained from the sustainable project is much overlooked.
Interviewing the chairman, Mr. Li, of Diinsider, a grassroots investment organization, we found out more about social enterprising in the age of sustainability. This may be helpful in guiding your start-up business into a self-sustainable path apart from merely environmentally sustainable. The conversation is translated and paraphrased.
One,
Between Profitability, Shared Value, and Public Good, where is the balance?
I recommend you reading into certifications like B Corp, which provide support and protection to for-profit companies addressing social problems and creating social value. The guidelines of such compliant companies could be the balance you are finding. Many enterprises may not fall under the category of shared value companies but still prioritize social objectives, making them socially conscious medium-sized enterprises.
Two,
What kind of business would thrive under the stimulation of climate crisis?
Climate-related industries offer significant social benefits and attract private sector and capital attention. Sustainable sectors, cross-cutting multinational corporations, and investment institutions demonstrate a growing interest in sustainability. Some sectors exhibit better inclusivity and stronger commercialization potential than others.
Currently there are two main pathways in climate-related industries.
1. Climate mitigationTechnological advancements and innovations, such as hydrogen energy and carbon capture technologies, offer business opportunities while contributing to climate change mitigation. These technology-driven solutions have commercial potential but are predominantly driven by technical considerations. In other words, student founders have to put their irreplaceable products at the first place of their companies. Sufficient R&D has to come before pitching for investments.
Climate Adaptation: Climate change has already caused significant impacts, such as rising sea levels and extreme weather events affecting agriculture. These areas possess a stronger social focus and offer both market-driven and commercialization challenges. You are solving a problem – its good as there’s more problems popping out, but you have to make sure that your solution and your team is better than other’s. This is your USP if you are taking on climate adaptation.
Want to know more about Avenir and social enterprising? Stay tuned for part two~
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Writing: Ian Z
Posted By: Margaret Y
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