Entrepreneurs and businessmen like Carnegie and Rockefeller donated large portions of their wealth after they reached financial success, but we are here to tell you why you should do it now and how you can be a successful Philanthropreneur while you are at the pinnacle of success like Richard Branson. Try putting donating to 2018’s your New Year’s Resolutions’ list.
Who is a Philanthropreneur?
The concept of “Philanthropreneurship” combines Philanthropy and Entrepreneurship, therefore, a Philanthropreneur is an entrepreneurial philanthropist. If we were to literally break down the terms and extract their meanings, it would roughly translate to an individual who seeks to promote the welfare of others by investing rather than donating.
The term Philanthropreneur was first coined by Mark Desvaux in 2004. However, it is claimed that it was first used by The Wall Street Journal in an article published by them back in 1999.
Philanthropreneurs firmly believe in investing rather than waving off the check which makes them active donors with abundant resources who aim to achieve social changes that are both sustainable and scalable. They are the individuals who bring about a creative and an entrepreneurial approach to philanthropy. Also, are inclined towards alleviating suffering and bringing a positive change in the world by creative and innovative ways.
Philanthropreneurs often aim at providing permanent solutions to the societal problems, for example, a philanthropreneur will rather try to eradicate the problem of healthcare than direct his/her efforts towards purchasing food for the hungry and medicines for the sick.
In short, we can say Philanthropreneurs are individuals who are interested in doing good and have their share of profit, too.
What does it take to become a successful Philanthropreneur?
The latest kind of Philanthropy is no longer just about writing checks at social issues, which is largely what happened earlier. The principles of Philanthropreneurship aren’t very difficult to grasp and are as follows:
1. A strong desire to help others
An individual should feel passionate about helping others and uplifting the society. Without this primary driving force, the individual will not be able to give in what it takes to be a Philanthropreneur.
Individuals who are highly energized, motivated and are full of life and want to make a difference in the world make for the best Philanthropreneurs.
Believe in the power of giving
Whether it is time, money, resources or all of them, Philanthropreneurs should have an element of giving within themselves. The urge to give something back to the society and watch them prosper is what sets them apart.
Creativity and innovation
Philanthropreneurs have a knack for solving problems organizations didn’t even know they had. By undertaking a novel approach, they not only identify the problems but also offer permanent solutions on how to eradicate them from the root.
Philanthropreneurs not only bring about a change in the world but also inspire and motivate others to do the same. They are masters of the game and possess exceptional leadership skills.
Why is it going to be the next big thing in 2018?
Philanthropreneurship is seen as the beginning of a new era in the field of philanthropy and is characterized by the integration of business practices and development of a philanthropist’s role.
The entire world is captivated by this new version of philanthropy and why shouldn’t it be? Philanthropreneurship is vastly different from the traditional forms of philanthropy as it not only includes business discipline but also entrepreneurial know-how and strategic thinking.
Earlier, jobs in the non-profit sector or philanthropy-focused jobs in the for-profit sector was not considered beneficial to the economy. However, today more and more organizations are finding ways to merge their strategic goals with a philanthropic focus to impact bottom line results.
Today, benefit corporations are on the rise and profit maximization is no longer any organizations only formally recognized objective. These organizations are attracting employees, especially millennials, who aim to do societal good with an employer who shares these values. According to a survey by the 2012 Edelman goodpurpose® study, 57 percent of employees said that they would want to work for an organization that actively supports a good cause.
Pierre Omidyar- founder and chairman of eBay- is one of the most powerful business leader and a well-established philanthropreneur. Pierre and his wife contributed a whopping sum of $100 million to Tufts University, USA, in the form of investment, private and philanthropic capital to develop the microfinance industry. The efforts of Pierre helped in integrating the non-profit sectors, business, and the government to come together and work for social benefit and watch the microfinance model succeed.
Building Brand, Relationships, and Engaging Employees
The unintended consequences of Philanthropy are that it helps in building customer loyalty which helps in creating a positive brand value in the minds of the customers and employees. Clients and employees want to be associated with your organization because of your passion towards them, it gives them the necessary energy and drive.
An organization should therefore, develop a program that resonates with its clients on a deep, emotional level and goes beyond any creative advertisement campaign.
In other words, the simple act of giving back evokes emotions and nurtures strong connections.
Building Fortunes by Helping
Entrepreneurialism and Philanthropy go hand-in-hand are often pursued concurrently. The fundamental desire to succeed is inherent in an entrepreneur but a philanthropreneur seeks to take up business goals that are beyond those that solely impact the bottom line.
Philanthropreneurs have made a career of such philanthropic giving and is a results-based business practice based on professional services that applies both strategic as well as financial skills to address the world’s most extensive problems.
Philanthropreneurs focus on building their fortunes with the vision and desire to overcome the world’s greatest problems from the get-go.
Self-starters who are highly energized and have a strong desire to bring about a positive change in the world account for the best candidates for this business model.
From Throwing Money to Growing Money
All too often Philanthropy has been associated with throwing money at the given issues and has been a common practice for billionaires all around the world, who believe in donating a portion of their wealth once they have reached financial success. Even though we appreciate the sentiments of leaders like Bill Gates and Warren Buffet who established The Giving Pledge, they are not enough to make the significant societal impact we are hoping to see.
What do we see on the horizon for Philanthropreneurism? Endless opportunities for you to exploit.