How socially-minded startups are changing the world of business

The nature of startups has changed. A 2018 study by the Global Entrepreneurship Monitor revealed that one third of all startups are set up with a social or environmental focus rather than purely looking to make a profit.

What’s changed?

The change has been fuelled by young, socially-minded entrepreneurs who have had it with the moral failings of companies that they’ve grown up with. It’s been a decade since the Great Recession, when the incompetency and greed of Wall Street bankers sent the world into meltdown, and it seems that the start-up community have taken it upon themselves to create a new style of business leadership, and change what it means to be a ‘business’.

Examples of successful social enterprises are shoe company TOMS, who donate a pair of shoes to a child in need for every pair they sell, and London-based Soap Co., who employ blind, disabled and disadvantaged people to manufacture their body care products.

Of course, these new startups aren’t charities. They still look to make a profit, and the entrepreneurs who head them up still want to have long and illustrious business careers. But the question that is asked now among start-up communities isn’t simply how much money you can make; it’s how disruptive you can be.

This disruption comes in more traditional forms, such as re-defining an industry by finding a niche in the market or changing consumer habits by providing simple solutions to complex problems, but now social enterprises seek another form of disruption as an indicator of success: how much can you better the lives of disadvantaged people?

The creation of social enterprises

The UK government currently facilitates the creation of social enterprises by offering grants, and loans are available from banks such as NatWest and Triodos to help socially and environmentally conscious entrepreneurs to set up UK businesses.

All over the world, communities should be smiling at the good intentions of these young business people who are rallying against the profit hungry corporations that hold so much influence over global trade. We can only hope that these big business giants take note of how social enterprises are redefining how businesses should behave. If they do, the world will become a much better place.

If you are looking at setting up a business in the UK, Goodwille can help you take care about the practical business aspects of your UK operation. This means that you can focus on disrupting the UK market and making the world a better place while we make sure you are good to go and comply with necessary regulations in the UK. Get in touch with us today to hear more about how we can support your startup.