On Wednesday, Chris posted a new cover photo on our facebook page; it was a picture of a beautiful parrot blending in with a green tree.  It was a perfect example of camouflage: the bird had evolved to look exactly like a tree.

The very nature of social entrepreneurship involves camouflage.  Social entrepreneurs really aren’t the same as regular entrepreneurs, nor are they the same as non-profit organizations.

Yet, it is important to blend in at times, and stand out like a colorful flying parrot at other times.

For-profit social entrepreneurs, here is a quick guide on when to blend in with the rest of the entrepreneurship world and when to stick out like a sore thumb:

1.       From an Investors Point of View:
As a social entrepreneur myself, I’ve faced investors who have said that I need to focus my core user value proposition away from the ultimate social mission.  In fact, even investors who are clearly focused on social enterprises have given me this advice.

The fact is that investors—whether they are in the impact sector or not—are looking for companies that will succeed.  It seems like an obvious statement but it has important implications.

Certain investors may be attracted your business because it has the potential for a positive impact on society, and that may even impact their appetite for risk, but it doesn’t change what they expect from you.

The fact that you have a social mission will make certain doors easier to open, but when it comes to brass tacks, you need a solid business plan with a proven value proposition to get funding.

The answer: Blend-in

2.       From a Moral Point of View:
Social businesses benefit from the public opinion that they are good for society.  For that reason, they are often the first to come under fire for any moral transgression.  In fact, many companies that are not trying to have a social or environmental impact will trumpet themselves as if they are in order to benefit from the positive association.  This creates a dangerous environment for social businesses.

In 2009, Kiva got into trouble because they had not fully clarified the actual cash flow process of their loan system.  It became known that sometimes loans were made on Kiva after the cash had been received by the entrepreneur.   At the time, Kiva’s President, Premal Shah, told me that his biggest concern was that they might lose the trust of users, which was something they prided themselves in and really strived for.  It was an honest mistake on Kiva’s part, but it underscored the importance of transparency and high morals for social entrepreneurs.

Mixing profit & social mission is tricky—make it clear what your values are.

The answer: Stick out

3.       From a Customer Point of View:
Customers only care about the value that you can offer them in comparison to your price.

In most cases, customers do not place value on the social mission.  For instance, D.Light customers are considering whether to buy a solar lamp to replace their costly kerosene lamp.  They aren’t worrying about the impact on the environment or even their health…for them it is an investment decision.

There may be situations where customers place value on your social mission,  but in most cases you’ll want to focus on the value that the customer cares about.

The answer: Blend in

4.       From a Recruiting Point of View:
Employees want to work on things they are passionate about.  That’s all I need to say here.

The answer: Stick out

5.       From a Media Point of View:
The media loves to tell positive stories or profile social businesses (See Jacqueline Novogratz on the cover of Forbes) and more importantly, the media controls the perspective of your morals.

In addition, the media is a great opportunity for your organization to broaden the scope of its impact:  even people who just hear about what you are doing may be inspired to follow a similar or related path.  I like to call it impact through influence.

Overall, you want to make sure that the media values the social mission of your company.

The answer: Stick out

- Bryan