In 2021, the Philippines’ ecommerce market sales reached $17 billion due to more than 70 million customers choosing to shop online. This is estimated to reach $24 billion in 2025 with a projected 17% growth.
Unlike its traditional brick-and-mortar counterpart, online stores allow customers to shop from home. All they need are their phones and laptops. This convenience led to soaring sales for many online businesses.
However, no business venture is a walk in the park, especially if profit isn’t the focal point of your efforts. Still, the world of ecommerce offers social enterprises the opportunity to reach potential supporters, as well as encourage customers to direct their buying power to charitable or sustainable causes.
There are still plenty of challenges faced by social entrepreneurs. If you’re threading the ecommerce path, you too will face some hurdles. But that doesn’t mean you can’t overcome them with grace.
Also read: 10 Inspiring Filipina Social Entrepreneurs
The challenges faced by social entrepreneurs
There are many virtues to becoming a social entrepreneur. But social entrepreneurship faces double challenges than traditional businesses. Here are just a few of them:
1. Finding sustainable funding and investors
Unlike traditional businesses, social businesses often struggle with securing funds for their ventures since they’re more focused on creating social impacts instead of profit.
These tips for Ways to Finance Your Small Business in PH can be helpful.
2. Limited awareness and support
Many types of social entrepreneurs work on solving complicated social problems that aren’t known to the mainstream media and the general public. They also face difficulties in raising awareness about their projects and garnering support from potential donors, investors and volunteers.
3. Creating long-term impact
Social entrepreneurs also struggle with demonstrating and measuring the impact they create through their enterprises.
Unlike traditional businesses, social businesses have to account for many intangible outcomes, which can be tricky to compare or quantify. Moreover, they struggle with analyzing, collecting or reporting data.
4. Remaining true to the mission
Social entrepreneurs aim to create social value by addressing a variety of social concerns. This goal, however, is not far off from also prioritizing profit growth to sustain the business.
Because of this dual identity, social entrepreneurs can lose sight of their mission. In most instances, there’s plenty of pressure on the investors and stakeholders to focus more on the profits than on the social impact. This can cause difficulty in balancing social and financial goals, as well as incite some conflict.
5. Implementation hurdles
Many noble ideas for social impact have great beginnings but watered-down implementation. There are several reasons behind this hurdle, namely the inability to grow and maintain the quality of work, waning motivation, and lack of financing.
External hurdles such as natural disasters, political upheaval, or stock market plunges also play a role.
6. Lack of support
Apart from financial support, social entrepreneurs often struggle to secure support for their infrastructural, regulatory and legal needs.
This limits their operations and opportunities. For example, they might be unable to comply with standards, access markets, and register their legal status.
7. Overcoming suspicions from skeptics
Social entrepreneurs are often questioned about their intentions. Many people wonder why they chose to provide social good instead of pursuing a conventional career.
Some businesses even deal with activists and religious fundamentalists.
#NinjaTip: Your ecommerce business needs the right delivery partner. Get the best ecommerce shipping with dedicated account management, big rebates, No RTS fees, and fast COD remittances when you Sign up for a Ninja Van VIP Shipper account!
How to create an impact in your field
Businesses play a powerful role in creating positive change – socially, environmentally and economically.
By prioritizing ethical business practices and social responsibility, businesses can create more value for their stakeholders while creating an equitable future. Here’s how:
1. Define and refine your impact metrics
Determine how you’re making an impact. Start by identifying ways to measure your impact, which includes environmental and social outcomes you wish to achieve.
By defining your metrics, you identify the factors that matter most and prioritize all e-commerce efforts there.
2. Create a sustainable business model
Choosing the right business model determines the effectiveness, scalability and sustainability of the enterprise. Always consider factors such as your mission, funding sources, goals, and target audience when selecting a business model.
Consider business frameworks like donate-back models, hybrid models, or impact investing models.
3. Focus on consumer empowerment
Consumer empowerment focuses on making informed choices about the services and products consumed, as well as supporting businesses that prioritize social responsibility and sustainability.
By researching services and products that align with your values, you send a powerful message to consumers on how important these responsibilities are for you.
4. Embrace collaboration
When it comes to achieving lasting social change, collaboration is key. Social entrepreneurs should always work with like-minded stakeholders, organizations, and government agencies.
Collaboration also improves efficiency, creates synergies, and helps achieve a more significant impact.
5. Build a strong social media presence
Social media is a must-have tool for entrepreneurs who wish to raise awareness about their cause.
Start building a robust social media presence by engaging your followers with compelling content. Use creative and visual storytelling to spread your message to potential supporters.
6. Earn public trust
Trust is elemental in creating meaningful and lasting change. By prioritizing accountability and transparency – through your campaigns – you’re more likely to earn the trust of consumers, employees, and other stakeholders.
7. Choose the best pathways for your cause
Your choice of ecommerce distributor determines how you can present and sell your products. Fortunately, there are plenty of distributors that collaborate with social enterprises, as long as they match their ethics.
SOCIAL ENTREPRENEURSHIP is indeed no walk in the park, especially due to its different focus and bigger challenges compared to traditional businesses.
But by acknowledging these hurdles, you can strategize points for improvement and create an impactful business plan. Work from there, pursue your good cause and help create a better world.
More helpful tips for your growing business:
10 Tips for Effective Cash Flow Management
Effective Strategies for Scaling a Business
8 Government Programs for Micro-Businesses and SMEs
