It’s an exciting time to be a social entrepreneur. Social entrepreneurs are innovating how we empower underserved populations. As the number of entrepreneurs who are focusing on making a difference over making more profit increase, incubator and incubator programs that offer support for the challenges faced by social enterprises are also growing. There are many ways in which social entrepreneurs can access funding.
There are many funders that give grants to social entrepreneurs. For social enterprises that are at the seed stage and are not generating much revenue, a grant is given to them to test their idea. The longer a company is in existence, the less risky investors perceive it to be.
Selling an ownership interest in a social enterprise is a good option for enterprises that have a promise but lack the assets to secure a loan or the cash flow to service debt. When adding equity investors, it’s important for social entrepreneurs to consider what they will bring to the business apart from money.
Crowdfunding platforms such as Thudafund and Indiegogo bring together individuals who are interested in funding innovation and individuals looking for start-up funding. Crowdfunding has proven to be a great asset in increasing an audience and sourcing potential customers.