Philanthropreneurs and Companies Doing Good while Doing Well

The line between philanthropy and business is blurring, says a New York Times supplement on Giving this week. A new generation of philanthropists has stepped forward, for the most part young billionaires who have reaped the benefits of capitalism and believe that it can be applied in the service of charity. They are “philanthropreneurs,” driven to do good and have their profit, too.

Meanwhile, in emerging markets, companies are also applying the "part philanthropy/part corporate strategy" business model. The result: they are developing markets AND contributing to bettering the lives of millions of people. Intel's World Ahead program in China is one example. The tech company has announced plans to spend $1 billion over five years to improve Internet access in developing countries and train teachers on how to use technology.

The long-term pay-off for companies such as Intel is pretty clear. For the governments of countries like India and China, where programs by Microsoft, Intel, and other hi-tech companies are underway, "the technology projects offer ways to close gaps with wealthier cities -- providing more-remote and less-educated residents access to information they wouldn't have otherwise to improve their own and their children's fortunes. Both countries have ambitious plans to use technology to maintain their rapid economic development."

For those of us at IFC -- an international financial institution with a development mission-- the convergence of emerging market development goals with 'philanthropreneurshipism' means at least a triple pay-off, where everyone can win.

Comments

[Wouter Kersten]

To solve issues they need to be looked at with a different mindset than the ones that created them.

NGOs do not need to be the victims here but can take their fate in their own hands. With more challenges than for-profit social (and sustainable) entrepreneurs because of higher expectations regarding morals and possibly because limiting tax and other laws. But these limitations do not need to be blocking for finding new avenues.

Look beyond existing and certainly past ways of working to find new answers. You could have a look at my log for a continuous discussion on these matters.

[Catalina Escobar]

I like this idea of the line between philanthropy and business is blurring. I think in the middle of it is the social entrepreneurship trend, institutions that generate value and also money. Is good to see that IFC realize the potential of this trend.
When is done by companies like Intel, is easy to know where they can access financing. However, other social entrepreneurs like NGOs are caught in the middle and need innovative ways of financing. I consider mysefl a social entrepreneur, I have an NGO in Medellín, Colombia to foster international and interinstitutional partnerships on ICT and entreprenuerhip. One of the challenges for NGOs is the access to financing beyond donations and grants. Investors that look for a return on investment are not an option because that concept doesn't exist in not for profits. How can we have access to social investors that are looking for a social return and not necesarily an economic return?