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Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

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Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#71
post #35

The way that you know that you're making a social impact or benefiting society then you're making money. Social benefit and making profits are the same thing. There are exceptions of course, like if you made money by cheating via violence or because you got the government to grant you special privileges. Otherwise, if you're playing by the rules then your profit is the only objective, rational way to reason about you…

What do you think about tobacco companies? Or payday lenders? I understand some would do something highly profitable but morally questionable and then donate the profits to a more socially productive firm. Is that what you are thinking? The end justifies the means?

Regarding Tobacco: they're providing a product that people want to consume. I'm classifying fraud with violence. So if a tobacco company lies, pretending that their products are healthy or whatever, that's evil. But a rational human can decide that they want to indulge in something now at the cost of possible consequences in the future. That you or others may not have such a strong time preference, i.e. choose current indulgences at a higher future cost, is no reason to project your values on others or to say that selling tobacco is not providing that consumer the benefit of enjoying a nicotine hit.

Not 100% familiar with payday lenders, but I'm assuming short term, very high interest rate loans. In principle access to credit is useful to people to meet immediate needs. It is the case for any loan that saving up, rather than spending now and incurring the cost of interest would be cheaper. Lending people money lets them enjoy houses, cars, or other trinkets earlier than they could otherwise obtain them. The added benefit comes at the cost of paying interest. If someone does that over shorter timeframes at higher interest doesn't change the value that lending brings.

What we can say rationally about the above is that consumers chose to indulge in the above services, that they gave up their valuable cash in exchange for the benefits that the above services brought them.

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#72

Earlier quoted context omitted.

Believe it or not, there is a large, large space between acting socially responsible and wanting money for "an edgy leftist position." So large. A gulf. Maybe you misread the question? Out of morbid curiosity - who do you believe is funding the breakup of the nuclear family? Where are you getting this from? And I'll bet you $10 that you are American - in no other country in the world is "tech companies want to disman…

Sorry if this hurt your feelings. You're one of the good people, doing great work. From reading "How to Win Friends..." I learned the importance to make people feel important. Sorry if I didn't do that in this case. My acumen is smaller. I apologize for any triggering. I was just poking fun at tech companies, funding not so well thought out positions. To answer your question, its currently one of the stated goals of…

“Dismantle the nuclear family” ... “currently one of the stated goals of BLM”

This is patent nonsense. Why would you ever believe that’s the goal of any widely supported organization? What happened to Occam’s razor?

The absurdity of this claim inspired me to “do my own research” on the matter.

The notion that this is a “goal” seems to stem from this portion of the “what we believe” page here:

https://blacklivesmatter.com/what-we-believe/

> We make our spaces family-friendly and enable parents to fully participate with their children. We dismantle the patriarchal practice that requires mothers to work ‘double shifts’ so that they can mother in private even as they participate in public justice work. > > We disrupt the Western-prescribed nuclear family structure requirement by supporting each other as extended families and ‘villages’ that collectively care for one another, especially our children, to the degree that mothers, parents, and children are comfortable.

Family friendly spaces and supporting each other as extended families are hardly “dismantling the nuclear family”.

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#73
post #59

We started Mullvad VPN in 2009 for political reasons. My cofounder Daniel and I viewed it as direct political action through entrepreneurship. In particular we wanted to protest Swedish surveillance legislation (FRA), which is partly why we chose a Swedish name for the service. So far we have refused at least five serious offers of investment and acquisition, because we would rather retain control, even if that meant…

Thank you for the story and insight, I find it mirrors a lot of Chamath Palihapitiya's perspective on capital being an instrument for change. What are the hardest challenges you're facing lately in operating a privacy focused VPN service?

Yes. Well, capital used correctly gives you leverage. Sort of the same. That can be used for a social net good or bad.

Related, I definitely agree with others in the thread that profit can be a measure of social impact. Whether your impact is positive or negative however depends on what solution you offer as an entrepreneur, and to what problem. Two farmers might have the same profit, but one is selling ecological greens, and the other one is selling high-fructose corn syrup. One is contributing to the obesity epidemic, the other one isn't.

In any case, the core of entrepreneurship is solving problems for people and organisations. The more people value and use your products and services the more profit you'll make, assuming your business model is economically sustainable. And you should want it to be! If your costs grow faster than your revenue, there's going to be a point where you have to shut down and can't help more people.

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#74

Earlier quoted context omitted.

Interesting, care to share more?

Hey Tim! Feel free to reach out, my email is in my profile. But basically, its a fairly modular house, currently located in Colorado that uses solar for energy and a couple different hydroponic systems in an attached greenhouse. We've been looking at/building every step to understand where construction costs are coming from and what options are out there. For example, we were quoted early on for part of the house fou…

Hey there - very interested in corresponding with you but when clicking on your profile, there is no email listed. Is there some other way to start a thread? :)

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#75
I donate the money I make from my side project apps to climate charities. The amount of money I was making was too small to motivate me for purely financial reasons, but as a means to help the environment it adds an additional source of motivation for me to iterate on them.

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#76
post #58

One of the great joys of making a profit has been giving to causes and needs that tug on my heart strings. Please help me understand the logic of how operating a business at a loss (eschewing profits) has a greater impact than having money to put towards said impact. Ex. Bill Gates

A ‘not-for-profit’ does not mean it doesn’t make a profit. It means that profits generated are used to further the purpose of the organisation and not, for example, for shareholder enrichment. A loss-making organisation could only be sustainable if it was receiving grants or donations, in which case it is more likely to be a charity than NFP.

OP said “social entrepreneur” placing “social impact over profit”.

That’s not a charity it’s a weak business.

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#77
post #63

I also run a company [1] that primarily recruits low-income Brazilians from remote locations and teach them how to code and create data-related products. The company itself is for profit in the long run, but the first priority is to make our members grow (financially and psychologically), then generate profit for the founders. During the entire process we focus 40% of their time to study/learn about soft skills (beco…

I really like this approach. I am in the middle of building a process like this in another country. Would you be willing to discuss your process in more detail with me?

My email is in my profile.

Thank you for doing good in this world.

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#78
post #59

We started Mullvad VPN in 2009 for political reasons. My cofounder Daniel and I viewed it as direct political action through entrepreneurship. In particular we wanted to protest Swedish surveillance legislation (FRA), which is partly why we chose a Swedish name for the service. So far we have refused at least five serious offers of investment and acquisition, because we would rather retain control, even if that meant…

Thank you for the story and insight, I find it mirrors a lot of Chamath Palihapitiya's perspective on capital being an instrument for change. What are the hardest challenges you're facing lately in operating a privacy focused VPN service?

As for our current hardest challenge:

Good question. As an organization probably helping each other ensure we stay focused on what needs to be done and what is right for the organization, weighing Time/Cost/Quality, and so on.

I'm not saying we're bad at it, it's just that remaining vigilant on keeping the feedback-adaptation loop short seems key, regardless of layer on the reality stack so to speak. On that subject, check out complexity science if you want your mind blown on the extent of recurring themes in physics, chemistry, biology, economics, computer science, etc.

Personally I have definitely struggled with perfectionism in the past, and still do to some extent. This greatly impacted my productivity, and those around me. Thankfully we hired a great CEO four years ago and I've since focused mostly on strategy and research. I've also rectified my perfectionism issue a bit :)

This is what I've been doing for the past two years, and anticipate spending time on for another few: https://mullvad.net/en/blog/2019/6/3/system-transparency-fut...

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#79

Earlier quoted context omitted.

This is amazing, I'd really love to learn more! Do you have any resources I can look into?

I don't have a website yet or anything so that I can solely focus on the building, but my email is in my profile. Essentially, the prototype is a tiny house with greenhouse attachment. Looks like it will come in around ~$25k. The greenhouse is 95% automated using hydroponics and sensors for any adjustments to turn on ventilation, water alerts or ph alerts for making sure the nutrient solutions are where they need to…

That's pretty good. From my experience just the greenhouse, foundation, growing apparatus, monitoring, growing supplies, and permitting would cost $25k. The labor costs and tiny house would easily put it over. I'd be curious in seeing the breakdown of costs.

Re: Ask HN: Anyone a social entrepreneur, i.e. placing social impact above profit?

#80

Your ask is pretty ambiguous. What specific questions do you have?

You're right, that's my bad. The thinking I had in mind when making the post is that entrepreneurship is difficult enough and the desire to make social impact introduces a sometimes competing demand. I wanted to get some perspective on what this is like and if there were any role models out there to study as I am keen on going down this road!

Social impact may be more sustainable. Think about a parasite that kills its host vs two organisms that exists in a symbiotic relationship.
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