Rethinking Social Entrepreneurship: A Different Approach Needed in Türkiye
In the recent past, Türkiye has seen a surge in programs and initiatives aimed at bolstering social entrepreneurship. NGOs, development agencies, and even donors or privet sector companies are investing millions of Euros or dollars, every year, to empower social businesses, give access to underserved populations to goods and services, and create livelihoods for them. This is indeed commendable, especially when it comes to the emphasis on women's cooperatives and the endeavor to promote female entrepreneurship.
However, as I've observed, there seems to be a glaring issue in the approach most of these programs take. A colossal amount of resources, energy, and time is directed towards areas that, while essential, shouldn't necessarily be the first step in establishing a successful social enterprise.
The Current Approach: Good Intentions, Misdirected Focus
Most of the programs I've witnessed across Türkiye seem to have an almost myopic focus on capacity building, equipment or row material procurement, and training. While these are undeniably important elements in the lifecycle of any business, making them the focal point at the outset is like placing the cart before the horse.
This tunnel vision has led to two notable outcomes:
1. Exorbitant Spending in the Wrong Places: With a majority of budgets channeled into training programs and equipment, the actual business side of the equation – product development, market research, and customer acquisition – is often left underfunded or totally ignored.
2. Neglect of Business Fundamentals: By prioritizing capacity over customers, we're essentially telling entrepreneurs to build a service or product without first understanding if there's a market demand for it, where is that market, and the tools they will need in order to access it. This not only sets the enterprise up for potential failure but also leads to the wastage of the very resources that were meant to empower it.
I could go on and on listing programs offering website building, social media or online advertising management or even listing those businesses on marketplaces, and numerous women's cooperatives having their hopes high and then dreams crushed when even with a beautiful website and regular social media posts you actually do not hear the cha-ching, you do not become a brand overnight and after so many efforts well its crickets: no sales!
The Real Starting Point: Product, Market Fit, and Customers
Before embarking on the journey of building capacity, we must first ask: "What are we building capacity for?" The answer lies in understanding product development and market fit. Here's why:
1. Product Market Fit is Crucial: An entrepreneur could have all the training in the world, but if their product does not meet a specific need in the market, it will be challenging to achieve success. A focus on product-market fit ensures that enterprises are built around genuine market demands, reducing the risk of failure.
2. Customer Acquisition Fuels Growth: Finding and retaining customers should be a primary concern for any enterprise. After all, a business without customers is merely a hobby. By focusing on customer acquisition early on, entrepreneurs can better tailor their products, understand their audience, and set their ventures up for long-term success.
Towards a More Holistic Approach
It's not that the philanthropic efforts and financial aid directed towards capacity building are misplaced. They are crucial. But it's essential to ensure that these resources are used judiciously and in the right sequence.
I propose a more holistic approach:
1. Initial Training on Market Research: Equip budding entrepreneurs with the tools to understand their market, identify gaps, and recognize potential opportunities.
2. Prototype and Feedback: Before extensive capacity building, support entrepreneurs in developing a prototype or minimum viable product. Encourage them to gather feedback and iterate.
3. Capacity Building Tailored to Needs: Once there's a clearer understanding of the market demand and product fit, capacity building can be more tailored, efficient, and, importantly, effective. Capacity in terms of production or manufacturing should be grown in parallel and as the demand for the product grows
4. Ongoing Mentorship: Pair entrepreneurs with seasoned business professionals who can guide them through the nuances of customer acquisition, scaling, and pivoting when necessary. Don’t get me wrong all advisers and mentors have value but unfortunately, I have witnessed in many of the curriculums the same people over and over again, people disconnected from the real active business life who offer vision but often lack of the practical roadblock and problem-solving mindset and experience of a seasoned entrepreneur. Peer learning is one of the amazing tools out there, and getting actionable steps and advice from an entrepreneur just a few steps ahead in the journey is what moves the needle.
In Conclusion, the heart of entrepreneurship, whether traditional or social, remains the same: to solve a problem or meet a need. By reorienting our efforts towards understanding the market and customers first, we can ensure that the commendable resources being poured into Turkish social enterprises do not go in vain; instead, foster thriving, sustainable, and self-sufficient businesses.
**Image credit to: https://corporatefinanceinstitute.com/resources/esg/social-enterprise/