Recently, HSBC banking group released a report from their research on factors that motivate people into business. They ascertained that the new generation of global entrepreneurs is motivated by purpose rather than just profit as they set out into business ventures.
According to the results of the HSBC survey, one in four young entrepreneurs under 35 years of age said that they were more motivated by social impact than by the resultant profit as compared to just over one in 10 of those aged over 55.
“Our research suggests this is a generational shift, younger entrepreneurs are focused on environmental and social concerns and that’s because they see these values as being their own,” said Stuart Parkinson, global chief investment officer of HSBC.
The survey was carried out across 11 countries interviewing 3,700 entrepreneurs. It was noted that out of every five entrepreneurs, at least one said to have found inspiration in environmental and social challenges and therefore made it a major priority to deliver solutions as a business owner.
According to Parkinson’s observation, social media has brought greater scrutiny of businesses and at the same time increased social and environmental awareness of the impacts of business practices. “Social enterprise has taken off as the new formula for success, a combination of capitalism and doing good, and younger entrepreneurs are clearly leading this,” he said.
Young entrepreneurs are walking in the footsteps of Britain – world’s leader in innovation with approximately 70,000 social enterprises last year, to set up social enterprises (Businesses) with a mission to benefit society and the environment as well as earn a profit.
31-year-old Zakia Moulaoui, CEO and founder of Invisible-cities Cities, a social enterprise employing homeless people as city guides in Edinburgh said that there was a greater awareness amongst her generation that being able to address social issues and earn an income is possible.
Britain’s Confederation of British Industry (CBI), an employers’ group, has found that two-thirds of 18- to 34-year-olds think companies should put society’s interest first. “Purpose and profit go hand in hand,” said Josh Hardie, deputy director-general of the CBI.
As you contemplate on that business step you are about to take, think about what motivates you; Is it just the profit or its possible impact? Wise entrepreneurs choose the latter. #Rewordit