Every start-up in the world is working towards making the world a better place. They are simultaneously trying to build a strong business foundation for themselves and keeping growth as their ultimate goal.
Some of the world’s biggest problems are insufficient food, water and energy security, to waste management. And it is not necessarily important that they all should be solved by governments and NGOs.
Hence the start-ups around the world, while working for their own growth, are also working towards making this world a better place.
These small companies in turn are challenging the long-assumed perception that ‘impact businesses’ are a form of charity. In fact, impact businesses are
- Mission driven
- Responsible for job creation and
- One of the most inspiring business ideas today.
Impact businesses addresses an entire range of world’s issues, which even includes
- Social inclusion
- Financial inclusion
- Environmental benefit
The Economic Impact – from revenue growth to job creation
It is well observed that the companies that support inclusive growth opportunities having also have quick growth in their revenues, creating more job opportunities now than ever before.
Over more than 135 UK SMEs generate more than £450 million in revenue. Among these 46.5 per cent companies have revenues exceeding £1 million. Altogether, these companies hire over 14 thousand people. The increase in job opportunities due to impact businesses has certainly challenged the common assumption that these business entirely rely on charity and volunteer work.
The impact businesses serve over 1.3 million beneficiaries every year that includes
- Other social organisation
Moreover, all these businesses belong to various sectors. Over 68 per cent are in service industries that include alternative finance firms and real estate, health, social and community services and education.
However, it is important to highlight the major economic contributions that the impact businesses make to the UK economy, mainly because they often go unnoticed.
Impact businesses are strongly focused on their social agenda and are progressively working towards socially inclusive, healthy and environmentally sustainable communities in an entrepreneurial manner.
A Unique Model
All the impact businesses have a unique business model. They also have an exceptional operational strategy which mainly focuses on the making profit while doing well for the society. However, the ultimate key marker for success is the company’s performance rather than making profits alone.
Over 91 per cent of impact businesses use fee-for-service approach for at least one of their products or services. For over 63 per cent of impact business, the main source of financing is through this fee-for-services and sales of products.
Just like other companies, impact businesses can use several operational models simultaneously. Another one of the most popular models is the employment model – used by over 14 per cent of the impact businesses. Through employment model, these companies generate a social impact by offering employment and training opportunities to their respective beneficiaries.
Innovation as a Key Definer
It is also important for us to know that the UK impact businesses are among the important innovators. Over 82 per cent of these companies have introduced new and improved products, services and processes. While the 69 per cent of these companies have introduced a product, service or process that was certainly unique in the market.
So if the impact businesses continue to flourish with respect to their revenue and number of employees, their potential in serving their social agenda and helping the millions will also thrive.
They have shown the business world a new way of succeeding in this competitive era, while also addressing the social and environmental issues. The impact businesses functioning in the UK has alone made the country’s economy sustainable.
A Way to Honour The Fast-Developing Impact Businesses
Companies that share a social and environmental cause along with their own growth and success are one of the fastest growing sectors in the UK. There are several honours given to such companies. These honourable platforms recognise the talent, potential and ambition of the country’s growth businesses.
One of the latest additions to these honour line-ups for 2018 is the Bridges Positive Impact Award. This honour is tailored to rejoice the impact businesses that are driving positive changes for people and the planet through their business models.