By Ifeanyi Odoh, Country President, Schneider Electric East Africa
Impact entrepreneurs are those individuals that have clearly defined goals, using ethical and business principles to address social and environmental challenge, driving progress towards the UN’s Sustainable Development Goals (SDGs).
It is admirable, and goes beyond what is, traditionally, regarded as successful business operations and resultant profit-making.
Impact entrepreneurs have a deeper purpose; their motivation extends beyond a vocational or business calling.
As an example, an energy engineer may choose their career path not just for a paycheck but to also contribute to solving a country’s power crisis.
The concept of impact or social entrepreneurship stretches back centuries: in the 19th and early 20th centuries, individuals engaged in social entrepreneurship were commonly labelled as philanthropists or social reformers.
However, it wasn't until the latter part of the 20th century that the term "social entrepreneurship" started to become widely recognised, driven by factors such as globalisation, advancements in technology, and increased awareness of social and environmental concerns.
It is good for business
Impact entrepreneurship also has constructive effect on business.
According to Ideas From Europe (IFE), a knowledge-based inspirational platform by the Sustainable Scale-Up Foundation, impact entrepreneurship strengthens customer and client relationship.
“Businesses are increasingly held accountable for their social and environmental impact, and customers prefer brands actively contributing to positive change. This extends to B2B relationships where shared values around social and environmental goals are becoming more significant,” says IFE.
So, when summing up impact entrepreneurship, what are some the key characteristics of these individuals and business?
Here are three important elements:
- Impact entrepreneurs identify pressing social issues, such as unemployment, energy access, or climate change. They innovate solutions that address these challenges sustainably.
- Ethics matter: impact entrepreneurs prioritise ethical practices, ensuring that their businesses positively impact society.
- Impact entrepreneurs also seek collaboration. They are constantly engaging with industry leaders to leverage expertise and resources. To this end, knowledge sharing, and ecosystem partnerships enhance their ability to create meaningful change.
From a monetary perspective, successful impact entrepreneurs are also incubators. These businesses or individuals provide financial support to ventures that are aligned with their social and environmental goals. This, in turn, allows these impact entrepreneurs to scale their initiatives and also implement lasting change.
It’s good for energy
Looking closer at impact entrepreneurs’ role in the energy landscape, these individuals drive innovation by developing sustainable and clean energy solutions. Their startups often introduce novel technologies, business models, and practices that enhance energy efficiency and reduce environmental impact.
Second, impact entrepreneurs have the potential to attract investment to the energy sector. Their ventures demonstrate the viability of sustainable energy solutions, encouraging further funding and partnership.
Third, impact entrepreneurs often engage with local communities, addressing their energy needs and ensuring equitable access. They work closely with underserved populations, promoting social inclusion and energy justice.
Last, by building networks and collaborating with other stakeholders, impact entrepreneurs have the potential to strengthen the energy ecosystem. They connect with investors, policymakers, academia, and larger companies, fostering a supportive environment for sustainable energy initiatives.
At home
East Africa needs more impact entrepreneurs who can foster an environment that empowers the youth to become engineers, electricians and other skilled professionals. They would truly lead by example, reinforcing the importance of positive transformation.
As a first step, by offering vocational training in conjunction with TVET Institutions. Though some of the candidates move to the job market after training, a good number of trainees become entrepreneurs in the electrical and technical fields. Building entrepreneurial skills, among these strata, then becomes a top priority.
Impact entrepreneurs have the potential to make a significant mark on East Africa’s changing energy landscape; they drive change by leveraging technology, collaborating with partners, and addressing critical energy issues in an ethical and sustainable manner.
