Позитивные изменения. Том 4, №1 (2024). Positive changes. Volume 4, Issue 1 (2024)

This tendency is not exclusive to the younger generation. Specialists at OKKAM GROUP note that inflation and the overall rise in living costs are shifting consumer perspectives of responsible consumption into actionable strategies, including those yielding personal benefits. Product longevity, energy efficiency, long-term value, and sharing are increasingly becoming part of the core attributes of products.

Small and medium-sized enterprises are motivated to incorporate impact into their business practices, aspiring to enter the supply chains of larger corporations which tend to prefer partners that embrace social responsibility principles. Furthermore, in the quest for clientele, companies are extending their focus to previously overlooked audiences. This includes, for instance, people with disabilities — a substantial and financially capable market segment. By tailoring and innovating products and services for such groups, businesses not only broaden their customer base and boost performance but also amplify their societal impact.

Consequently, social objectives are being woven into the business models of small and medium-sized enterprises, often without overtly articulating their social stance. For example, small print shops produce materials for charity, IT companies offer pro bono services to activists, hair salons provide free haircuts to the homeless, small cinemas organize screenings for physically and socially disadvantaged children, and coffee shops contribute to community support initiatives for the less fortunate and employ individuals with disabilities. Hence, the lines between social entrepreneurs and socially responsible businesses are increasingly converging.

UNIFIED CONCEPT: IMPACT ENTREPRENEURSHIP

If our assumption is correct, Russian society is likely evolving towards a merged entity of NGOs, social enterprises (SEs), and socially responsible small and medium-sized enterprises under the umbrella of impact entrepreneurship.

Impact entrepreneurship amalgamates their finest attributes. Significantly, it represents a broad concept rather than a narrow legal classification, encapsulating the essential mission of addressing social challenges through innovative, sustainable, and efficient business approaches.

The fusion of diverse organizational types facilitates a more optimal utilization of resources and knowledge across various sectors, fostering innovation and experimentation with new technological, business, and financial strategies. This also encourages the development of alternative financing sources, as blurred boundaries allow for inclusive support measures for a variety of organizations. It is notable that both governmental and private grant-giving bodies are currently running competitions for NGOs, businesses, sole proprietors, individuals, and municipal entities alike. Examples include both the Federal Presidential Fund for Cultural Initiatives and the local “Social Leader of Usolye-Sibirskoye” contest by the state corporation Rosatom.

A unified model of impact entrepreneurship could potentially attract investors, since it integrates the premier practices of both commercial and non-commercial ventures. Thus, impact entrepreneurs are positioned to get not just profits but also donations, grants, subsidies, and diverse investment inflows aimed at fulfilling social objectives.

Another merit of this integration is the anticipated magnification of societal impact. Consolidating best practices for solving social issues, accessing diverse funding sources, and a commitment to innovation will help to expand the positive impact on society.

However, one must consider the potential risks, such as the loss of distinctiveness and dilution of organizational identity and values. This can result in a dilution of focus and direction, potentially hindering the attainment of social objectives. Furthermore, there is a risk of diminishing transparency and trust since the monetization of services and activities could lead to skepticism about organizational intent. Nevertheless, such potential negative outcomes can be mitigated by actively embracing and promoting transparency principles, and by leveraging the organization’s theory of change[84] as an anchor for maintaining its mission and objectives.

WHAT COMES NEXT?

The convergence of boundaries between hybrid NGOs, socially responsible businesses, and social entrepreneurs represents a natural progression in the evolution of social initiatives and the broader economic landscape. Impact entrepreneurship signifies a novel paradigm, synthesizing the foremost practices from these sectors to pursue genuine, substantial, and enduring social transformation.