In the last few weeks I’ve come across several articles on social business, investments and how to make profit working in the third sector. For example, McKinsey have just a launched some articles on the topic in its newsletter and even Bill Drayton, founder of Ashoka, is one of the authors.
The main problem is the undercapitalization of the sector – correct. The second one is how to attract mainstream investments to the sector – risk… but where there is risk there is also an opportunity to make money. Is it a coincidence that the financial crisis has made it more difficult making money in mainstream business and capitalists are looking for new markets?
I spent the weekend in Naples to give a lecture on how to find a job in the third sector. I was invited by the City Council of Portici’s Youth Department. It’s the interland of Naples where Camorra (a mafia-like organisation) run the economy.
I was surprised at how many people came just to listen to a new voice. They were enthusiastic, interactive, curious and ready to grab any opportunity. Unfortunately there aren’t many opportunities there.
Talking to the young people of Portici I was thinking: have the authors of McKinsey-like articles experienced such a place like Portici where social inovation is really needed? But I doubt you can make any money unless you are ready to share with Camorra.
We don’t work in the sector to make money. The underpinning values are: social justice, human development and sustainable development. Organisations can make money. Employes must be paid. I’m actually for paying them well when it is possible. But money is not the driving force and you might actually decide to sacrifice profit to reach the goal. As you would have to in Portici.
Perhaps we could raise more money, attract capital but we would risk our reputation when speculators get into our sector. All doors are open to us because we are trusted. I’m not sure trading trust for capital is a good deal for the sector.
