How purpose-driven entrepreneurs are shaping the future
According to a Bloomberg report, millions of businesses are started every year at an average rate of 14,000 per day. This leaves consumers with plenty of options when deciding how and where to spend their hard-earned money, forcing businesses to find ways to differentiate themselves from the rest. One way to do this is to focus on purpose, rather than just profit.
Consumers are paying attention to how brands spend their time and money. According to Nielsen research, an estimated 52% of U.S. consumers will intentionally buy from brands that support causes that matter to them, and 36% expect brands to support social causes. Yet, the Nielsen report found that 55% of consumers don’t believe brands are making meaningful progress in this direction. Consumer expectations, combined with their innate skepticism, create an opportunity for purpose-driven entrepreneurs to shape the future of brands and industries.
The rise of purpose-driven entrepreneurship
While purpose-driven entrepreneurship is nothing new, it has recently gained importance. “We are witnessing a paradigm shift in the global business environment as more entrepreneurs recognize the need to address pressing social and environmental issues. This change is driven by several factors, including heightened consumer awareness, the growing importance of corporate social responsibility, and the undeniable importance of mental health to overall health and safety,” says Mike Wilson, co-founder of Medicinal Media, a nonprofit that uncovers the intersection of beneficial art and science.
Today’s consumers are savvy. The internet has made them more informed and conscious of their choices than previous generations. It’s easy to quickly learn a brand’s values ​​and find out if it lives up to them. “People want transparency, ethical practices, and products and services that align with their values, which is why purpose-driven entrepreneurs are seeking to meet these expectations by incorporating sustainability and social impact into their business models,” says Wilson.
Redefining success
While revenue and profit margins are still important for businesses to measure, these metrics are no longer the only indicators of success. Purpose-driven entrepreneurs redefine success by incorporating social and environmental impact into their bottom line. They measure their success by financial growth and the positive change they make in society and on the planet.
“It’s clear that in the future, companies can’t afford to grow without purpose,” says Todd Tillemans, president of Hershey Company U.S. He adds, “The health and thriving of our brands directly enable us to make a unique and important impact on the world. And we believe that revitalizing our purpose accelerates our growth. It’s a virtuous cycle.”
This shift in perspective is giving rise to a new generation of leaders who prioritize long-term value over short-term profits. These entrepreneurs understand that sustainable success requires authenticity and a genuine commitment to improving the world. By embracing a purpose-driven approach, they attract like-minded investors, employees, and customers who share their vision.
Wilson co-founded several for-profit companies before moving to the non-profit sector. “Our organization represents a shift in non-profit strategy, adopting a for-profit business model to rapidly achieve self-sustainability. This approach frees us from the constant fundraising cycle and allows us to focus fully on our mission and maximize our impact. This inspiring journey has already attracted support from notable figures, including actress Jada Pinkett-Smith, international yoga influencer Adrienne Mishler of Yoga with Adrienne, and civil rights attorney Terry Gross. Together, we are committed to making a significant and lasting impact on mental health.”
The future of purpose-driven entrepreneurship
The challenges we face today, from mental health awareness to social inequality, require bold, innovative solutions. Purpose-driven entrepreneurs are uniquely positioned to leverage their passion, creativity and entrepreneurial spirit to tackle these issues. But to do so, they need to communicate their purpose effectively and put it at the heart of their business models. “Leaders need to think hard about how to put purpose at the heart of their strategy. The best tactic for doing so is to transform their leadership agenda and Overall organizational objectives“It’s not enough to say you have purpose; leaders must truly embody purpose every day in their interactions with customers, employees and other stakeholders,” write Thomas W. Mulnight, Ivy Buche and Charles Dhanaraj of Harvard Business Review.
Purpose-driven entrepreneurs are shaping the future by using their influence and platform to do good for society. As more people recognize the benefits of purpose-driven businesses, it will become a necessity, not a choice, for companies to adopt a purpose-first leadership approach.
