Built to Scale

Abstract

A persistent, nagging question among social entrepreneurs and those who research social entrepreneurs is why some social enterprises scale while others do not. Of late, much credit has been given to design innovation, design thinking, fast pivots and the Business Model Canvas. But what if we are placing too much emphasis on design innovation and pivoting, and missing other key important factors that help social enterprises scale quickly? While innovation is clearly important, and arguably a necessary baseline, the authors' interviews with successful social entrepreneurs have pointed more to the importance of sourcing financial capital, building out their supply chain – both in production and distribution – and obtaining early media recognition. These three factors created a virtuous cycle, allowing these firms to increase their revenues, employees and impact substantially each year during their first four years after founding.