VerSe Health Plus

The Social Enterprise Edge : The Demanding Pursuit of Impact, Profit & Value

There are two primary ways to drive social change:

1. Mandate it through policy or law.
2. Leverage free-market principles to make it so lucrative that the market itself drives social behavior change.

A prime example of using market principles for social change is Tesla. By leading the charge in the adoption of electric vehicles (EVs), Tesla didn't just focus on the environmental impact-it did so with style, economic incentives, and clear communication of real value creation. (I understand my engineer friends might have differing views on the efficacy of EVs, but here I'm focusing on Tesla's role in category creation.) It's hard to imagine the same speed and style of change unfolding had it been a mere policy directive, likely bogged down by bureaucratic delays, administrative frictions & perhaps public resistance.

With marvelous effectiveness, Tesla owned the creative autonomy to drive the world away from fossil fuel-powered vehicles in general, and increasing the uptake of Tesla EVs in specific.
But is every company that champions social impact a social enterprise? Not necessarily. A true social enterprise is one with a clear social mission, using commercial strategies to achieve that mission.

Traditionally, social enterprises were synonymous with not-for-profit organizations such as charitable trusts, Section 8 companies, and foundations. However, in recent years, a welcome shift has occurred- inclusion of for-profit ventures under the ambit of social enterprises.
Gone are the days when one had to choose between profit and social good.

Socially conscious for-profit ventures have gained mainstream acceptance, in part thanks to initiatives like the BSE and NSE's Social Stock Exchange, which allows both not-for-profit and for-profit organizations to raise funds for social projects through public markets. As per SEBI, to qualify for this, social enterprises must have at least 67% of their immediately preceding 3 years revenue / expenditure / beneficiaries coming from the target population & served under the eligible activities. India is the 14th country to experiment with this concept, and while experts agree that there's a long way to go, the beginning has been noteworthy. CSR initiatives, too, are increasingly channeling funding into social enterprises, further legitimizing this category.

However, whether for-profit or not-for-profit, governance, transparency, and accountability have become more critical than ever. Social enterprises must uphold high standards of governance, safety, and quality, while also dealing with delicate decisions around pricing and profitability. In the social sector, "profiteering" can be a taboo subject-especially in social areas like healthcare, education, climate, animal welfare, food security. When working in these spaces, pricing becomes a sensitive issue. I like to think of it this way - Profiteering is like a bad odor, once your stakeholders smell it, they can never ignore it.

If you're a social entrepreneur grappling with questions around pricing and profitability, such as:

• How should we define profit?
• Do we deserve to be profitable? Don't we ?
• Does lower cost always equal higher impact?

You're not alone.

There is more to social profits than meets the eye.

The Right to Win

Social enterprises are created to make a difference, but they truly come to life when entrepreneurs feel the depth of gratitude that beneficiaries have -when they witness firsthand the positive impact they're having on people's lives. A true "right to win" for social enterprises is achieved when they operate with deep empathy and an unwavering focus on their outcomes.

By meticulously identifying and eliminating any processes that don't add direct value to a beneficiary, social enterprises must optimize costs without compromising quality. This approach allows them to remain a low-cost, high-quality alternative-not because of cutting corners, but because they care more than anyone else. Their commitment to the cause drives them to innovate and streamline, ensuring that every penny spent enhances the beneficiary's experience and leads to better outcomes.

In my field of healthcare, success CANNOT just be measured by offering cheapest costs but by the overall experience and outcomes.

We work in a space where creating a memorable and meaningful experience is often undervalued, yet it can make all the difference to the healthcare consumer-the beneficiary. At our health camps, for instance, each beneficiary's clinical and non-clinical experience, and their collective experience as a community, plays a pivotal role in improving health outcomes. Equally important are the intangible benefits, such as making them feel safe, cared for, and empowered to seek good healthcare in the future.

Take, for instance, our anemia screening and medication program. When conducted in municipal schools, the simple finger-prick test is the first time 99% of the students have ever experienced a blood test. Most of these students, particularly from underprivileged backgrounds, don't know how painful it would be or even feel comfortable expressing their fear of needles. Yet, after going through our camp, their fear of needles diminishes, and they feel more empowered to seek healthcare in the future. These experiences leave a lasting impression- similar to how many women still remember the day Whisper or Stayfree came to their schools to educate them about menstruation.

There are countless micro-learnings that go into execution & when a sponsor / organizer brings us onboard, they are often paying us for not just the core services but also intangible outcomes - the consequences of which, can be witnessed only long term :

The more obvious deliverables are:

• Efficient registration-to-medicine dispensing at high speed and high volume.
• Delivering reports, insights, and analysis for transparency, documentation, and measurable health outcomes.

The more unexpected, but critical deliverables are

• Reducing beneficiaries' fear of needles.
• Empowering young children / adults to advocate for their own healthcare, or know what to expect.
• Creating a fun, safe, and memorable experience for all stakeholders.
• Promoting community healthcare by bringing people together to improve their health.

A Final Thought on Value

For Founders of Social Enterprises: Always prioritize value & scalability. In a nation where the majority of the population is underserved, prioritizing value, by default, means causing outcomes for masses.

For CSR leaders: Don't be swayed by low-cost alternatives. Instead, seek quality & tested approaches that deliver real, impactful results.

For NGOs & Organizers: Remember that achieving quality outcomes may require a small premium, but it's worth every penny.

Author:
Sakshie Rastogi,
Co-Founder & CEO,
Healium Futuristics Private Limited