Meeting the moment
Social enterprises and COVID-19
I am in awe of the social entrepreneurs with whom I get to work; they amaze me in new ways every month. Lately I’ve been inspired to see how they are responding to the rapidly evolving COVID-19 crisis with determination and creativity.
Made for this moment
Some social enterprises have business models seemingly built for a world of remote learning and working. As I brewed my first cup of pour-over this morning I thought of Vega Coffee, whose coffee bean subscriptions are perfect for folks sheltering in place. Vega has created an “Origin to (Home) Office” program that enables employers to provide ethically-made coffee as a perk to their remote-working teams. I spoke with co-founder Rob Terenzi this afternoon, and Vega has more new programs brewing.
Last Friday I caught up with Claire Mongeau, CEO of M-Shule, an SMS learning management platform for primary school students in East Africa. M-Shule has extended its platform to include community health worker training content in the local language (Swahili) and is looking for opportunities to use its platform to disseminate COVID-19 health guidance to low-income and low-literacy users. To help displaced learners and their families, M-Shule has provided its e-learning tools for free to Kenyan primary school students whose schools closed earlier this month.
M-Shule has also rapidly adapted its own work environment, shifting its Nairobi-based team to remote work in a single day, purchasing cellular data bundles so that employees without home internet could work effectively by using their phones as hotspots.
New applications, new customers
For other companies, COVID-19 presents an opportunity to apply an existing solution in a different setting. AgUnity is an Australian company that has created a blockchain-enabled digital platform enabling secure transactions for farmers and other last-mile users in developing countries. In the COVID-19 world, AgUnity seeks to use its platform to improve the food supply chain and enable contactless transactions in both developed AND developing economies.
Neopenda is taking its wearable vital signs monitor for newborns in developing countries and exploring ways to deploy these monitors to popup clinics, health centers, and nursing homes in the U.S. and elsewhere, as the growth in COVID-19 cases creates the need for rapid deployment of portable, low-cost equipment.
Finding their voice
In still other cases, the current crisis compels social entrepreneurs to speak out against harmful behavior by much larger businesses. Rachel Faller, founder of zero-waste ethical fashion company Tonlé, sees large fashion companies pulling out of purchase agreements with suppliers, which harms garment workers in this time of crisis. She is using her voice as an entrepreneur to hold these companies accountable.
Inspiring, but at risk
Perhaps these uplifting examples shouldn’t surprise us. Small purpose-driven companies — especially those that work to improve the lives of marginalized populations — may be ideally suited to rise to the challenges posed by the COVID-19 pandemic. Attacking a vexing, complex problem? Making a positive contribution to an important public need? Adapting and pivoting rapidly? Being a voice for ethical business? These are all familiar concepts to the social entrepreneurs I’ve worked with; they have been doing all of these things pre-pandemic. These social entrepreneurs baked these ingredients into their companies from the beginning, ingredients they can now use to help address the COVID-19 crisis.
Even with these advantages, though, it’s a precarious time to be an early-stage startup. It’s tough to build a business in Kenya, Nicaragua, or Cambodia even in the best of times; a huge ecosystem shock makes it even more challenging. Those who are not yet cash-flow positive must tightly control their spending, knowing that many investors will sit on the sidelines for at least the next few months. New product applications mean finding new customers and markets and sometimes require capital investment.
Investors: time to step up
So now is the time for the best investors to step up and stay engaged. Don’t just tell your portfolio companies to extend runway — they already know that. Talk to the founders — see how you can help with advice, support, referrals, and perhaps even cash. Connect them to the quickly expanding universe of COVID-19 resources for business.¹
The COVID-19 pandemic is showcasing the resilience of social entrepreneurs and their companies. These inspiring leaders are deploying platforms, tools, and devices that meet urgent needs. Let’s all figure out how to lend them a hand so they can lead the way to a prosperous, post-coronavirus future.
[1] Two examples: Santa Clara University’s Miller Center for Social Entrepreneurship has compiled a list of crisis management resources and funding opportunities. CASE at Duke University has crowd-sourced a database of COVID-19 capital relief programs.
