What makes social enterprises stand out is their purpose-driven leadership. These businesses make it a responsibility to contribute to the societies they profit from. Their purpose not only makes them unique in the market, but eventually makes their organization sustainable in the wrong run.
A purpose-driven business is more likely to experience sustainable growth compared to a competitor without one because of many factors.
Purpose gives employees meaning to be productive. Meaningful work is very individual, yet essential for companies to retain talented people for long. Nearly one-half (43%) of employees surveyed reported that meaningfulness of the job was very important to their overall job satisfaction. Employees usually find their roles at social enterprises fulfilling because the culture of social responsibility brings combines work with their personal values.
Society is also more willing to support a company which does not only prioritize profit. In one study surveying consumers on their attitudes about purpose-driven companies. , 79% of respondents said they’re more loyal to purpose brands, and 73% said they would defend them.
Start ups with a clear purpose have a high chance of acquiring funding. Paul Hargreaves, CEO of Cotswold Fayre, states that “Investors now realise that purpose-driven businesses can be better investments, as these are the brands to which consumers are flocking in their tens of thousands.”
Lastly, adaptive leadership is the norm. Very often, social enterprises start out with little resources and deal with problems or issues other institutions are hesitant to solve.