Social entrepreneur Sam Davidson was offered the following advice from one of the founders of a fair trade coffee venture called Higher Ground located in Alabama:
It would be moronic to push an issue in the marketplace if you couldn’t be competitive with it.
Even social ventures need to understand the fundamentals of good business opportunities. There needs to be a big enough market that will pay enough money to make the business financially viable.
Sam went on to make this observation on this advice at his blog:
No matter how well-meaning Higher Ground was, if it didn’t make a great-tasting coffee that was competitively priced, no one would buy it, and moreover, no one would listen. But because they’re able to offer a tasty brew, people take notice and happily support their efforts to improve the lives of coffee growers abroad and nonprofits at home.
That is why we call them social entrepreneurs — they need to be effective entrepreneurs if they want to help their particular cause.