Social Innovation - W06 Reflection - Revenue Generation

 

Revenue Generation

·        Summary of the week

This week focused on enterprises’ finances and source of income. Ideas to start a social enterprise in the majority have one common roadblock, funding. Non-profits organizations specifically, struggle to find ways of rising income or sustain what they have without any external assistance. Grants and donations although a short-term program become the main source of income of many organization struggling financially; however, once these programmes cease, the organization’s impact stops. Therefore it is advisable for non-profit organizations to find an approach of developing good marketing strategies to divers their activities thus increasing the chances of more income. Professor Michael Porter's experience is very genius. Wherever he got interested and became aware of a social problem, then he formed a nonprofit. Businesses shouldn’t profit from causing social problems. They should by all means try to become the solution to our universe’s social issues. And to do it well, entrepreneurs must be able to found businesses that create wealth by meeting their needs. An entrepreneurship must model its financial activities by performing its books correctly. Different types of documents help manage correctly organizations such as Financial Statements, Cash Flow Statements, and Balance Sheets.

·        A response to a specific reading, video, or activity. For instance, did something spark interest, surprise, anger, inspire, or confuse you? Reference the specific reading, video, or activity. Add your thoughts, and explain your reaction.

Professor Porter asked a fundamental question what is the problem that we have in solving problems and not making a profit? Because “We can’t SCALE”. In general, when a business solves a problem, it makes a profit. When enterprise develops an area by bringing sanitation, water, and electricity, they solve an issue and make a profit at the same time but because they cannot make large scale, show results, make progress, then their impact fades away. And usually, because they are short on resources, they have not enough funding, grants, or donations. Business creates wealth when it meets needs at a profit. Wealth is meeting needs at a profit is creating resources. Only businesses can create them when they are able to meet a need at a profit. Profit is magic, allowing solutions to be infinitely scalable.  If we can make a profit, a solution becomes self-sustaining.

The growth of an enterprise changes the situation in the community. As they are able to solve a social issue, the world becomes a better place and the people around become healthier and happier. For that, an organization should take the business seriously in tackling the root. Another good example is Vera Cordeiro, a social entrepreneur as well as a professional physician who founded the Asociacao Saude Crianca Renascer (Rebirth: Association for Children's Health), with the aim to extend care to poor children after they are discharged from public hospitals to avoid them being admitted again and again for the very same disease. Business needs to learn their mission, stick to it, solve the issue, and then money will come.

·        Does money buy happiness? Can money change the world? Explain.

I will agree that money buys happiness to the extent that when you have money, you are in a position to get what is comfortable for you. If a family of six needs a car, the first thing in mind will be to buy a family car, a large car that can allow six people to ride in it, but if they do not have enough money, they will be required to wait longer or buy a small car and rotate. The happiness here should be positive, spending money the right way is the key to real happiness. Work hard to gain more money, be charitable, and saving for times of distress. Wealth will put you in a safe neighborhood, nice warm home, good education, and adventures.  Not to mention good food!  Being able to travel, meet new people and seek adventure also brings happiness.