Social entrepreneurs have higher revenue growth, but also more uncertainty

Social entrepreneurs combine a financial purpose with a social purpose. These entrepreneurs have higher revenue growth but also more revenue uncertainty. Administrative challenges can also get in the way of the ambition of these social entrepreneurs. So says research by RaboResearch.

In brief

• The number of companies pursuing (mandatory or voluntary) a climate, energy or social goal in addition to their corporate objectives is increasing.
• Enterprises with a social goal have higher revenue growth, but also a higher degree of (revenue) uncertainty. This could be an indication that these ventures stay in the startup phase longer and grow less quickly.
• Social entrepreneurs who find it challenging to combine a financial and social goal report lower growth ambitions for their businesses in the survey.
• Multitasking, that is, combining a financial goal with a climate, energy or social goal, requires additional coordination. Split responsibility for both goals between employees, small financial or non-financial incentives, increased knowledge and better monitoring of financial goals can facilitate this coordination.