W12 Paper: Parenting

 

Good Business Creates Good Business: Southwest Creations Collaborative   

Introduction

Southwest Creations Collaborative (SCC) is a non-profit social enterprise created by Susan Matteucci with the intent to support economically disadvantaged Spanish-speaking immigrant women in New Mexico to improve their social and economic welfare. The main activity of the organization is to employ women for sewing jobs. SCC revenues originate from contracts but highly depending upon grants and donations. To find other sources of income, Matteucci has to make a crucial decision whether or not to accept a joint venture with a recently formed group called Social Venture Partners-New Mexico (SVPNM) in order to become more independent and less reliant on donations and government grants. Her most worry is the SVPNM’s lack of field experience in the sewing industry despite their good business background and the fact that this venture might change the purpose of the organization.

Problem Analysis

Through a submitted proposal, SVPNM selected SCC as their first choice in terms of their orientation and size and made an offer of $25,000 per year for two to five years to SCC which sounds like a great idea to increase the organization’s impact by marketing its approach. However, in return, SVPNM would like to be involved in the company's major decision. SVPNM has a strong belief that they can assist SCC to expand its impact and plan to implement more concepts. Matteucci is confused and afraid for the future of her company as she feels like she is actually selling her organization to virtual strangers whose focus is on the market share while her focus is on the women. She feels uncomfortable taking their offer and raised many questions. Matteucci is between a rock and a hard place.

Recommendations

In providing information and guidance to Matteucci as a consultant, I will advise her to schedule another meeting with the SVPNM board of directors to discuss further the terms and conditions to clarify her doubts thoroughly, and before the meeting takes place she will be required to email/fax them the meeting agenda including her questions and recommendations. Successful entrepreneurship involves the ability to taking risks. I don’t mean that Matteucci must go into contracting with SVPNM blindly but after the second meeting, she will be able to make a final decision. SVPNM seems to be legit but taking risks in business involves careful planning.

Personal Application

As a social innovator, Matteucci saw a gap in running a business in order to improve the income of women and filled it. I personally sympathize with Matteucci’s feeling to let her enterprise go to new management. Building a company from the ground up becomes part of our life and we would love that at any given moment still be in control of the major decision. Nevertheless, sometimes the only way to expand a company might be to allow help from a third party without drifting from our vision. I have learned from this case study not to let my pride get in the way of the greater good.