This guest post is by fellow mentor/advisor to the Social Innovation Fellowship (formerly C.V. Starr Fellowship) Robin Pendoley, Founder/CEO of Thinking Beyond Borders. This is a must read for innovators and entrepreneurs of any type. Please read on!
“I have failed.”
This phrase opened Natasha Blackadar’s summer blog post about her first social venture. Warning: This is not an inspiring story about how resilience and perseverance created a dramatic recovery.
Nope. Natasha’s venture failed. Spectacularly. And that’s a good thing. Perhaps the most important part of this is that Natasha has recognized, accepted, and courageously made it plain to the world. Fortunately, this young social innovator lives on to fight another day, stronger for the experience.
As a Social Innovation Fellow at Brown, Natasha spent this past school year (her sophomore year of college) building a social venture that would bring college student volunteers to support a local development agency in a small South African community. As part of the fellowship, she received funding, coursework in theory, and mentorship. This process consumed her life, shifting the focus of her learning from theory to practice. Being a social entrepreneur and leader of her venture became her identity.
When she arrived in South Africa, she quickly realized that, despite months of communication and planning, the community partner did not want her or her team of student volunteers there. Within just a few days of the start of a 10-week project, she became concerned for the safety of her team. Natasha came to the conclusion that the relationship with the partner organization could not be salvaged. To try to continue would be disruptive to the community and put undue strain on local relationships.
Natasha pulled the plug.
As any resourceful project manager would, she utilized her network to create new opportunities for her team elsewhere in the country. They completed service, had a cross-cultural experience, and learned about international development. But, Natasha’s vision of a sustainable venture that would provide assistance to the community and learning opportunities for students has died.
Reading her blog posts makes it clear that Natasha was heavily invested in this venture. Yet, she did what so few social entrepreneurs are able to do – recognize a failed project and move on.
There has been a lot said recently about the importance of recognizing and accepting failure in social entrepreneurship (Jonathan Lewis in Huffpo, Failing Fast by Anna Ebbessen, Harvard Business Review). Not only can it result in better ventures, but accepting failure is crucial to ensuring we don’t create negative impact. “Resilience” seems to be the new golden ticket to social entrepreneurship. To succeed, social entrepreneurs must try, fail, and repeat until they succeed.
Outside of college programs, accepting failure is not easy to do. The social innovation sector is filled with perverse incentives. Ventures are rewarded with funding and exposure for visions of delivering grand scale and fundamental system change, all with a business plan achieving sustainability within 18-24 months. These aren’t perverse because they aren’t great aspirations. They are perverse because they reward early stage ventures for taking enormous risks.
There are risks for every stakeholder. The entrepreneur invests not just their time and energy, but often their whole identity in their venture. The funders invest resources in vetting, funding, and supporting the venture. Partners commit their time and energy to collaborative efforts. These stakeholders risk losing both their resources and their clout if the venture fails.
But, it is often the most vulnerable stakeholder group that carries the most risk – the community to be impacted. Social ventures target populations with a fundamental need like nutrition, health care, or education. Ventures that fail to deliver positive and productive impact risk squandering the efforts and resources of the community.
That, however, is not the worst-case scenario. The worst-case scenario is that, despite good intentions, the venture negatively impacts the community. And, because the rest of the stakeholders are not incentivized to recognize and accept failure, the venture continues delivering this damage unabated.
What no one tells you in this sector is that the venture is not truly failed until the social entrepreneur deems it so. As support dries up, the social entrepreneur can continue to iterate, try new approaches, and keep the venture alive – even if it should be scrapped.
There are two conclusions to draw from this story:
- For the sector to be viable and maintain its focus on creating meaningful and positive social impact, the incentive structures must change to support entrepreneurs to recognize and accept failure.
- Programs like the Social Innovation Fellowship are crucial to preparing future social entrepreneurs to be effective. While the funding, studies, and mentorship are key components of that learning, providing a safe space to fail is crucial.