Social Ventures: Catch 22 or the best of both worlds?
A social venture combines aspects of a for-profit corporation and aspects of a non-profit. While a for-profit is designed to make as much money as possible most effectively and (hopefully!) sustainably, and a non-profit is working towards a social mission, it is often difficult to combine the two. When do you make the for-profit aspects a priority? When do you forgo profits to fill a need in line with your mission? There is so much grey area, and so many case-by-case exceptional circumstances, it can be a tough line to walk.
PEPY offers tours. Most tour operators make the final decision based on their bottom line. Is this decision profitable? Does it make economic sense? But what about us? We offer tours but we use the profits to run our non-profit organization, building school and increasing access to education across Cambodia. What might make economic sense for any other tour operator, might not for us.
In addition, there are moral questions you face all the time just living in Cambodia, no matter who you work for. Someone walks in and asks to be the cook for our tours. She has no job, a small child, and a look of extreme need in their eyes. She is a wonderful cook, but can not speak English, and my Khmer is not up to the level it needs to be to communicate effectively with her. Another woman comes knocking, asking to be the cook. Here English level is very high and her cooking just as good. Based on impressions and her stated past, her "need" is not as high - though of course that is a hard thing to measure here in one of the poorest countries in the world where everyone here NEEDS, and a few more dollars a month can improve almost everyones' health, safety, and well being. Most for-profits would take the person with the higher skill level, getting more for the money, and probably providing a better experience for their clients. The non-profit working for social development might be tempted to hire the first woman, the one who they can help support and for whom the job will make the most difference. But, a "social venture"? What do we do? When do we walk the for-profit line, and when do we walk the non-profit one?
This is just a small example, but the decisions like this range across the board from every day small decisions, the size of the office we rent, being able to really differentiate "needs" for the organization and added amenities which are extraneous.
My days here are filled with these decisions and I feel torn over these choices every day.
PEPY offers tours. Most tour operators make the final decision based on their bottom line. Is this decision profitable? Does it make economic sense? But what about us? We offer tours but we use the profits to run our non-profit organization, building school and increasing access to education across Cambodia. What might make economic sense for any other tour operator, might not for us.
In addition, there are moral questions you face all the time just living in Cambodia, no matter who you work for. Someone walks in and asks to be the cook for our tours. She has no job, a small child, and a look of extreme need in their eyes. She is a wonderful cook, but can not speak English, and my Khmer is not up to the level it needs to be to communicate effectively with her. Another woman comes knocking, asking to be the cook. Here English level is very high and her cooking just as good. Based on impressions and her stated past, her "need" is not as high - though of course that is a hard thing to measure here in one of the poorest countries in the world where everyone here NEEDS, and a few more dollars a month can improve almost everyones' health, safety, and well being. Most for-profits would take the person with the higher skill level, getting more for the money, and probably providing a better experience for their clients. The non-profit working for social development might be tempted to hire the first woman, the one who they can help support and for whom the job will make the most difference. But, a "social venture"? What do we do? When do we walk the for-profit line, and when do we walk the non-profit one?
This is just a small example, but the decisions like this range across the board from every day small decisions, the size of the office we rent, being able to really differentiate "needs" for the organization and added amenities which are extraneous.
My days here are filled with these decisions and I feel torn over these choices every day.
Daniela Papi
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