Question for fellow Changemakers:
Can established organizations really change their models to serve low- income consumers ? or will the real innovation and sustainable ideas come from NEW hybrid organizations that intricately intertwine the beauty of the social sector and the busines sector?
I'm noticing that it's down-right hard for established organizations (businesses or non-profits) to quickly develop models to serve the BOP. Even in this competition so far, we see only new organizations -- established specifically to serve low-income markets. Of course there are examples of big companies entering these new markets. And there are clearly examples of social entrepreneurs as well. However both sectors, when entering this space after already being established in another, face challenges:
For businesses: pressure from shareholders to maximize profits and in a timely fashion; competitive pressures to focus only on highly profitable clients; internal pressures to keep the same business model
For NGOs: pressure to stay loyal to social mission rather than generating revenues; pressure to reduce consumerism rather than increase it through new products; pressure to use resources to "help" people rather than selling products/services.
Change is HARD ! Do these factors mean that it's EASIER to start a new hybrid enterprise that combines social values with a business model approach - rather than trying to teach an old dog new tricks ? If it possible to change, what factors need to be in place to ensure succes ? Organizational change models point to these question as well.
Maybe the future - and I mean FUTURE as in 100 years from now ? holds a world without business sector and social sector distinctions. Instead, we'll have hybrids...
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