Traditional private companies are all about the bottom line. But what if a business could make money while contributing to the common good?
Social entrepreneurs are people who leverage business techniques to solve cultural, environmental and social problems.
To learn more about social entrepreneurship and its positive effects, I spoke with Alex Lahti, Director of Operations at DLG Naturals. DLG Naturals sources cosmetic ingredients from southern African countries while creating jobs for the rural poor.
If you’re curious about the exciting world of social entrepreneurship, read on to learn how Alex created a for-profit business with a non-profit mission.
Alex’s story of social entrepreneurship
Alex’s company, DLG Naturals, sources cosmetic oils and butters from countries in southern Africa. It sells these ingredients to cosmetics companies in America, Europe, Canada, and Japan.
The company relies on wild harvesting across large, uninhabited tracks of land. Alex hires locals to harvest botanicals and work in processing facilities.
Across all the moving parts, Alex ensures that the company upholds high industry standards, fair trade practices, and sustainable agriculture. That way, it works toward its core mission: “To create a rural middle class of producers and healthy lives for all.”
DLG Naturals’ social mission: how the company helps people
Alex seeks to increase employment for people in rural Botswana and nearby countries. Alex says he meets “lots of people who want to advance their life but can’t find a job because the unemployment rate is anywhere from 20 to 50 percent.” With DLG Naturals, he aims to start empowering people to have “income generating opportunities.”
But Alex must balance his social mission with keeping the company afloat; he can’t provide jobs for everyone in need. For social entrepreneurs, Alex says, there’s a tension between maximizing profit and remaining socially conscious. “You can only mitigate but not solve [the tension].” You must focus on improving your corner of the world while still running a successful business.
The golden rule in the social enterprise game people need to understand, is “if you go out of business, you stop helping people.”
Social entrepreneurs must choose the right industry
Alex was strategic in choosing the cosmetics industry to pursue social entrepreneurship. “We deliberately chose the cosmetic industry. Cosmetic customers are increasingly opting to purchase products that directly improve the lives of producers and the well-being of the earth.”
In the cosmetics industry, more and more people are looking for sustainable, organic products. Millennials especially, Alex says, “embody these ideals way more than other generations.” Everyone has a world of information at their fingertips, so companies must be transparent about their standards and practices.
To be successful in social entrepreneurship, you must think both about your social objective and how to capture socially-conscious consumers. Choosing the right industry is paramount. Plus, you need to think strategically about marketing your social concept to the world.
Tips for aspiring social entrepreneurs
Alex is confident that anyone with a strong business concept and social mission can run a successful social enterprise. That is, as long as you keep a growth mindset. He strongly believes you can’t expect to succeed right away, nor can you be afraid of embarrassing yourself. With every failure, you’ll build real skills that will help you improve for the next time.
Alex encourages social entrepreneurs to think about business first and a social mission second. Create a product or service that will sell, he advises, and then ask, “How can I get this to save the world?”
Others start with a social mission and then look for a way to create a business. While this can work, Alex believes “it’s the harder way to go.” To keep your business afloat, you can’t be afraid to market your good work as a selling point. You can improve the lives of others and drive more sales to your business at the same time.
Afraid to start a business? Alex’s advice for pushing past fear
Starting any business is a risky venture, and many of us don’t pursue our dreams out of fear. Alex encourages aspiring entrepreneurs not to let low professional confidence hold them back.
“If you’re afraid, you’re human,” he says. But you shouldn’t mistake your fear for a rational thought process. The number one reason that people end up with regrets, Alex says, is that they are “paralyzed to follow their dreams because of fear.”
He suggests writing down your fear as a way to manage it. By making your concerns tangible, you’ll establish control over your fears. That way, they won’t control you.
Take the first step toward social entrepreneurship
Whenever we start a new professional or educational venture, we have to manage feelings of anxiety and uncertainty. But those feelings usually don’t mean that we should stop and change course.
If you’re interested in this kind of enterprise, you could search for social entrepreneurship jobs in existing companies. Or you could pursue your dreams to start your own social entrepreneurship companies.
By finding a balance on the for-profit and non-profit spectrum, you can build a successful business, create jobs, and improve the lives of those around you.
Are student loans holding you back from starting a business? Learn how this woman started a business and paid off $40,000 in student loan debt in just seven months.
Interested in refinancing student loans?Here are the top 6 lenders of 2019!
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1 Important Disclosures for SoFi.
2 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.50% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.49% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 17, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 04/17/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at firstname.lastname@example.org, or call 888-601-2801 for more information on our student loan refinance product.
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3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.48% effective April 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.49% – 7.27%1||Undergrad & Graduate|
|2.49% – 6.65%3||Undergrad & Graduate|
|2.49% – 7.41%4||Undergrad & Graduate|
|2.50% – 6.65%2||Undergrad & Graduate|
|2.49% – 7.11%5||Undergrad & Graduate|
|2.98% – 9.72%6||Undergrad & Graduate|