Hunger, clean water, pollution, diseases, lack of access to education – these are all questions still looking for answers. Some of these challenges are new but some of them date a long time ago. What changed? Awareness. In the 21st century we finally have the means to measure, assess and distribute information about these issues anywhere on Earth. Individuals, NGOs, governments, international institutions, they are all looking for lasting solutions that will make this world better. Some of these initiatives are successful but they tend not to be global, or sustainable for the long term. The problem is always the same: rich people don’t pay enough taxes, corporations don’t give enough to charities and so on. We thus have a problem that needs to be solved first: resources.
Resources are the key to changing the world for the better. However, we need to switch perspectives and look at resources from a different angle. Firstly, we need to think about who is generating these resources? Countries per se cannot do that without whom? People! But people will only generate resources through what we call businesses. NGOs, institutions and even countries can of course be sometimes effective and efficient in using these resources and directing them towards generating solutions. But they do so by using resources that were already generated by for profit organisations.
For this to happen, we need entrepreneurs that can tear down the wall between charity and profit. And this is already happening. Take education for example. 20 years ago it would have been impossible to think that with a tiny effort everyone on earth with an internet connection could freely access top educational resources from Harvard, MIT and other well known institutions. Crash course, Khan Academy, Coursera and many others are offering qualitative knowledge at apparently no cost for the users. However, they are not doing this out of goodwill only, but primarily for profit. It’s only a different business model. Users can access the content without any fees, but certain assignments or the possibility of earning a certificate costs. Recycling, renewable energy, bio food, ending diseases, decreased poverty and many other good things with a positive impact on the world happened because entrepreneurs have found business opportunities in these problems.
It is wrong to think that business only gain by harming someone, at least not in the long run. Businesses earned more by fighting pollution or by taking better care of their employees. Healthy employees who enjoy the work environment will be more productive, efficient and innovative. Unsafe working conditions actually mean higher long term costs for covering accidents and other problems. Corporations today invest in gym memberships for employees, fancy offices, green spaces inside buildings and so on. They do not do that out compassion, but for profit.
Solving social issues and generating business profit go hand in hand and they’re not a zero sum game. Direct help to individuals in need can be useful, but solving a problem with a business idea brings more wealth overall.
