This appears to be a brand new word, although the concept is actually quite old. I picked up on it in the New York Times this morning. A philanthropreneur is defined by Answers.com as "people who bring an entrepreneurial approach to philanthropy: they are interested in effecting positive changes in the world and alleviating suffering, but are doing so for profit. Their contributions are investments rather than donations."
The New York Times article provides a few examples of how philanthropreneurs go about their work. They view these initiatives as an investment - yet the outcome has a positive impact on the environment etc. An example is the Grameen Bank, a bank that provides credit to the poorest of the poor in rural Bangladesh, without any collateral. The article points out that the bank's revenues are greater than its expenses. And at the same time it has been incredibly effective of pulling people out of poverty.
I am well acquainted with a local operation that works on the same principles. Shane Immelman, the MD of Lapdesk, firmly understands this concept. The Lapdesk is a patented portable school desk that sits on a child's lap. Lapdesks are donated to school children around the country and costs are borne by sponsors who advertise on the surface of the product. Sponsors gain a double benefit from their investment – it is a marketing vehicle and also forms part of their CSI programme. Lapdesk is not an NGO or section 21 company, it is a business that needs to generate a return for its investors.
This is the key to its success, as a business it provides business-centric solutions to its clients even though they happen to have a CSI bent. Whilst Lapdesk operates profitably it will ensure that both the beneficiaries and clients gain the maximum benefit from the programme.
I am sure that Kim would concur with me on this.
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