An influential impact investor offers advice for new social entrepreneurs

“I have vowed to be as helpful as possible,” which is why Mr. Solomon took a call with me. He had responded immediately. He agreed to share some experience with this new social entrepreneur, a Twitter follower.

I had been researching, studying, and interviewing for our new social enterprise when I met Mr. Solomon. I was fortunate to have talked to a few successful people, each of whom had been very kind. While each conversation had been educational, I found more and more that “social enterprise” and “impact investing” and so on. they are quite specialized concepts. The idea of ​​using business as a force for good has only gained traction in recent decades. The experience remains concentrated among those who have spent years working in the industry themselves.

Joel Solomon co-founded and directs Renewal, “a collection of organizations that used the powerful tools of business and philanthropy in support of long-term social solutions.” Mr. Solomon, himself a successful private financier, has affected several socially viable operations. He has empowered many people through his work and commitment to a better world. Our conversation turned out to be as specific and helpful as I imagined.

I had 30 minutes on the phone. The question was the following:

“What advice would you offer to a new social business? Focus on how to attract attention and funds.”

Mr. Solomon spoke of 3 key areas that he believes are critical to building a brand and raising funds. Master these, and a social enterprise is well on its way to legitimacy, maybe even success:

1. Access, which refers to the distribution of the network itself. How many contacts can introduce you to money or events and circumstances that boast about money?

2. Knowledge of where the money is. There are specific institutions that offer seed capital, such as incubators and venture capitalists. There are organizations that promote equity crowdfunding. There are showcases that one can participate in, to be admitted to a particular audience and network. And then there are the wealthy people looking for causes to get involved in. You need to search hard, find these organizations, and work with them.

3. Lists of possible bridges to private money. The goal is to maneuver in situations where there is abundance of wealth. Know that building and executing these lists can be difficult, as exercise challenges one to get out of one’s own comfort bubble. What is the best way to reach out and represent yourself in a situation of power and wealth? What could stop you? The intention is to capture as much scenery and glory as possible, while of course defending the cause.

And of course, finally there is the “art of compromise.” Mr. Solomon briefly summarized the characteristics of successful people everywhere, such as intelligence, strategy, personality, presentation, being realistic, etc. The best-known attributes of successful entrepreneurs also play a crucial role.

35 million people include the richest 10% of the United States and Canada combined. “This means that 1 in 10 people have money here,” said Mr. Solomon. The increase in private money for commercial ventures with social impact corresponds to a decrease in public investment due to the decreasing scope of the government. For those who are out to run socially strong businesses, it helps to know that not only are there plenty of funds, but that it is also a rapidly developing trend.

Social entrepreneurship is a powerful new movement (as I see it); one that allows people everywhere to take charge instead of relying on bloated bureaucracies and corruptible governing bodies. There will be several successful participation models over time. The best models will generate successful public-private partnerships. There is still much to see, learn and study about this industry. But what we have proposed is good. We will stay the course, build experience, and develop credibility. Hopefully, we will succeed and change many lives for the better. In any case, in a few years, we will look back and remember our first followers and advisors.