Young entrepreneurs twice as likely to value social impact

Labelled as the ‘Me, Me, Me’ generation, millennials have, at times been given a bad press particularly when it comes to the world of work. However, a new study has revealed young entrepreneurs are more than twice as likely to say having a positive impact on the community is important than those aged over 50.

HSBC’s Essence of Enterprise report reveals that 15 percent of UK entrepreneurs aged between 20 and 30 were motivated to launch an enterprise based on it having a positive impact on the community. The biggest motivator across all ages was the chance to “be their own boss”, a quarter of respondents were motivated by a lack of career development at work and 17 per cent said that it was because they’d invested a new technology.

If social impact is your prime motivator read on for our top tips to starting a social enterprise:

Do your research

As with any new business you need to make yourself aware of the competition. Assess the strengths and weaknesses of other players in your specific sector. Take into account that as a social enterprise you are not a charity and therefore must not neglect the ‘enterprise’ nature of your venture.

Have a clear vision

Ask yourself what problem you are trying to solve, who you are seeking to help and what is unique about your approach? If you don’t know the answers to these questions you’re going to find it difficult to raise funds, get partners on board and generate business. Successful social enterprises have their mission statement at the heart of all they do. Find yours and place it at the core of your plans.

Get your business plan together

Aim for no more than 20 pages and keep it short and concise. Your mission, vision and goals should all be stated. Include clear figures and time-frames and be ambitious yet realistic about what you can achieve.

Secure funding

You need to raise the funds to get your business off the ground. Thoroughly research the options available to you and be realistic about what you need to start up. You may be lucky enough to secure a grant, however these are few and far between and there is a great amount of competition for them. If you are considering a loan then it’s worth taking into account that new businesses, particularly start-ups, are often turned away by the banks so consider alternative funding as a possible injection of cash.

Form partnerships

It’s likely that there’ll be other groups and organisations that share your passion for socially beneficial businesses so make connections, network and don’t be afraid to ask for advice.

Get your message out there

It’s crucial to network both to find out what you need to know from others but also what others might need from you. Use social media to get your business and message across and try to generate some media attention. You already have a great start in turning heads because of the nature of your business so use this to your advantage. Convey your passion for your cause and your business to others and spread the enthusiasm!

Lucy Liddiard