Problems that Social Entrepreneurs Face When Looking for Capital

Any entrepreneur who has an idea that can change the world tries to find capital. Whether the entrepreneur intends to focus on education, poverty, climate or health, capital is the oil that keeps wheels of business moving. The questions that social entrepreneurs should ask themselves are: what type and how much capital is needed, who have the capital, and how can it be negotiated.
When trying to find the right investors, people make mistakes. They make a mistake when trying to get a good deal. They also make mistakes when they interpret what other people say. Entrepreneurs might be negotiating with individual angel investors, family offices, private foundations, private investment funds or government agencies, and all of them want different things. It is common to see social entrepreneurs moving from one place to another trying to get capital, but they are not always sure who to target.
Many social entrepreneurs confess that the capital they got in the past was not the right kind of capital for them. Therefore, it seems many social entrepreneurs do not know what to ask for and who to go to. So some social entrepreneurs meet their investors and try to be whatever their investors want them to be.
To minimise the risk of getting the wrong investors, you should do thorough research before raising capital. You should identify and select few investors that invest the amount you need, at your stage of development, in your industry, and in your region.


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