Why shouldn't Social enterprises ( SE) rely on grants?
𝐈 𝐰𝐢𝐥𝐥 𝐬𝐡𝐚𝐫𝐞 𝐰𝐢𝐭𝐡 𝐲𝐨𝐮 𝟑 𝐫𝐞𝐚𝐬𝐨𝐧𝐬.
1) ᴛʜᴇʏ ᴡɪʟʟ ɴᴏᴛ ʜᴀᴠᴇ ᴛʜᴇ ɪɴɴᴏᴠᴀᴛɪᴠᴇ ᴍɪɴᴅꜱᴇᴛ ᴛᴏ ꜰɪɴᴅ ᴡᴀʏꜱ ᴛᴏ ʜᴀᴠᴇ ᴛʜᴇ ᴄᴀꜱʜ ꜰʟᴏᴡ ᴛᴏ ꜱᴜꜱᴛᴀɪɴ ᴛʜᴇɪʀ ʙᴜꜱɪɴᴇꜱꜱ.
Every business needs cash flow so they can cover their monthly expenses to continue running the business. If the govt keeps giving handouts instead of understanding what do SE needs? Then, the govt has failed to be a catalyst to drive the SE community to a whole new level. There is a saying that says " Give a Man a Fish, and You Feed Him for a Day. Teach a Man To Fish, and You Feed Him for a Lifetime".
2) ᴛʜᴇʏ ᴡɪʟʟ ɴᴏᴛ ᴋɴᴏᴡ ʜᴏᴡ ᴛᴏ ᴅᴏ ʙᴜᴅɢᴇᴛɪɴɢ.
Once the SE has felt the comfortability of getting free money from the govt with no interest or strings attached, then the SE main focus is to do research & findings on all the avaliable grants all over the world to fund their operations. How long can this method last? 2 SE I will share with you here is I-cycle and Grub Cycle ! Grub cycle received tremendous funding but ended up they couldn't find a sustainable stream of income to continue operating . I cycle on the other hand, their team did that for nearly a decade and that's why they are in trouble now because they don't have cash flow and didn't know how to do budgeting to control their expenses. If they can't control their expenses, then they won't have a mindset of "How can". A "How Can" mindset helps you to find ways to make things possible. If you need a monthly income of RM7k, how can I generate sales to hit that target? How can I sell 500 products in a month to achieve 7k?
3) ɪᴛ ɪꜱɴ'ᴛ ᴀ ᴘʀᴏᴠᴇɴ ꜱᴏᴄɪᴀʟ ʙᴜꜱɪɴᴇꜱꜱ ᴍᴏᴅᴇʟ.
A business model is a business that can generate money to sustain the operation so others can follow & replicate it. If you are only relying solely on grants and most of the time as well, then why not set it up as an NGO? It saves you a lot of money and people will be able to get tax exempted receipts too .
So, if you're a SE, I hope you will reconsider that mindset of yours about relying on grants to survive. I have seen many start-ups that started with me 3 years ago didn't survive because of that mindset. That's why I always remind myself "Change is always necessary!" .