What are Social (Impact?) Start-ups in 2024?
What is the true definition of Impact Start-ups?
An impact start-up can be defined as a start-up knowingly founded with the aim of meeting a social or environmental challenge, often with a disruptive innovation, and thus introducing a positive social impact.
It includes sectors as varied as energy, mobility, circular economy and social inclusion with adjectives such as tech for good, social innovation or community-driven business.
These start-ups are often on the early spectrum of purpose-driven businesses.
But.
One question we always ask ourselves: why a term as vague as “impact”? what does it really mean to be an impact or “socially responsible start-up” ?
we could argue that every company have an ethical “impact” in some way. McDonalds also has an positive “impact” on society by employing low-skilled people.
The key here is that the company should have a positive “net” value on society. If we calculate what McDonald’s brings to society, they negatively contribute much more.
What is the difference between social start-ups and traditional start-ups?
The Oxford definition of start-up is: “ A newly established business” . This is only the broad approach. In reality, most “start-ups” work on an innovative business model that aims to take a new approach on something.
It all boils down to how we name new businesses. For people known within the start-up “culture” or “mindset”, start-ups is how they see a new shiny business.
But the definition is not always the same for everyone. Within the non-profit sector, the main goal is not to make money so a social “start-up” will make much less sense. even though they have similar goals of having a positive net impact on society. Social start-ups have the luxury to be financially self-sufficient which NGOs also aim to achieve.
From my experience working with Tamaraneh NGO on an SEO strategy, they had the willingness and immense gratitude to help people in need but marketing to be financial self-sufficient was scary.
For 2 reasons:
- Not knowing where to start within all the ads
- The lack of funds to pay costly ads and employ competent marketers.
Thankfully, an SEO strategy was the best way for them to gain visibility in an ethical and self-sufficient way.
The impact start sector is far from just being a whim of people wanting to “change the world”. In 2023 only, the French social entrepreneurship ecosystem grew by 6% in a year, despite the unfavorable financial settings of the start-up economy. The impact start-ups of today could be the main purpose-driven companies of tomorrow.
If you are interested in the Impact area, you might want to look into the potential of SEO for your impact start-up to grow organically and ethically. I’m Blaise, the SEO freelancer for purpose-driven businesses.
Sources:
- Battistella, C., Dangelico, R. M., Nonino, F., & Pessot, E. (2021). How social start‐ups avoid being falling stars when developing social innovation. Creativity and Innovation Management, 30(2), 320–335. https://doi.org/10.1111/caim.12431
- https://mapping-startups-impact.fr/
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