The Goodbets Post-Election Roadmap for Social Entrepreneurship in 2021
With an administration that undervalues public services and social impact out the door, entrepreneurs working toward tackling cultural, environmental and social problems can finally sow the seeds for their lifelong work.
Needless to say, the results of the 2020 election have shifted the landscape for social entrepreneurs — for the better.
Get prepared as we go through the Goodbets roadmap for social entrepreneurship in 2021, covering top voter issues and how you can capitalize on them and respond accordingly for success far beyond the new year.
TOP ISSUES FOR VOTERS IN 2020
This year was chockfull of controversial issues for voters to consider leading up to the elections. Some of the most pressing included the following:
COVID-19
COVID-19 struck the world by force, smashing the U.S. economy for nine months and counting. Everyday life has changed because of it, in the lives of Democrats and Republicans alike, though the groups had different views of its importance to their vote heading in to the election.
Throughout the year, Democrats and Democratic-leaning voters have expressed more concern over the coronavirus pandemic in comparison to Republicans and Republican-leaning voters.
As elections neared, when asked if COVID-19 is considered “very important” to their vote, 82% of Biden voters agreed with that statement and only 24% of Trump voters said the same.
Racial justice
Likewise, Biden and Trump supporters also differ instrumentally over their views on racial justice, a subject that awoke abruptly in lieu of the killing of George Floyd in Minneapolis back in May.
Soon after the murder, just over three quarters of Biden supporters said that “racial and ethnic inequality would be very important to their vote.” Again, only 24% of Trump supporters agreed.
Economy
Closely intertwined to COVID-19 and racial justice is the economy, which is where partisans more closely agree — on some points.
In October, 66% of Biden voters and 84% of Trump voters said that the economy would be a top voting issue for them.
However, only half of Republicans believe that helping the U.S. economy requires reducing the number of COVID-19 infections to the level where people can safely attend school, work, and stores.
Now that the election is over, attention is shifting away from Trump and more toward public policy and ways in which our communities and livelihoods can be improved.
One example among Biden’s plans to expand Obama administration policies is emphasizing environmental justice, which addresses the “disproportionate harm to lower-income and minority communities from corporate polluters.”
In short, this win for the Democratic Party is a huge opportunity for entrepreneurs who flourish from finding innovative and sustainable solutions for social challenges. There’s a very strong chance that funders will feel the same way.
Bonus point: You don’t need to change your entire mission. Just think about how you can angle yourself to receive funds directed toward these issues.
HOW SOCIAL ENTREPRENEURS CAN CAPITALIZE ON & RESPOND TO THESE ISSUES
Social entrepreneurs should shift their strategy based on the recent election results, keeping the following in mind to make the most out of the current situation:
Pay attention to post-COVID cash crunch in states
In light of the billions lost across the nation due to COVID-19, cuts will be made across state budgets, from “healthcare and education to grants and assistance to municipalities,” according to Bloomberg.
Unfortunately, these budget cuts only exemplify inequalities in our system and are felt the most among vulnerable and underrepresented communities.
As a social entrepreneur, you can step in and offset some of the deficit created from the damage of the pandemic. Actions speak louder than words. So lead the way by investing in existing or new programs that serve excluded populations who need aid the most.
Also, since states will now have less money to donate to nonprofits and social enterprises, you’ll need to be smarter about how you fund yourself and what you spend your money on. Focus on essential financial operations first, being mindful of extra investments for the time being.
Look to the federal government for more support
By far, the largest sources of services and funding to help solve social problems are federal, state, and local governments, with the federal government leading the pack.
Immediately after Trump’s election in 2016, progressive nonprofits indulged in an unprecedented spike in donations as people flocked to “rage give” for fear of what the Trump administration would do to said nonprofits — and predictions were true.
Over the past four years, sizable deductions were made to programs that support education, environmental protection, low-income housing, scientific research, public health, and other public services, known as non-defense discretionary (NDD) programs.
Unsurprisingly, the 2021 budget allotted for a 7% overall reduction in NDD programs.
However, now that Trump is out, social entrepreneurs can look to the federal government for support in the form of new programs or increased funding for existing programs.
A quick tip when working with governments: Make sure you know where you stand to effectively and efficiently relay your end goal, always using that as your common interest.
Start building connections to the new administration
It’s no secret that networking is a crucial factor in the success of social entrepreneurial organizations. Among networks, there is not only a common desire to win, but also a mutual dependency, which allows social entrepreneurs to reduce their dependence on other sources of funding.
Without a doubt, limited access to loans, contracts, donations and support can make it difficult for social entrepreneurs to find their ground when building the business.
To remedy this, we recommend you network with incoming administration officials who influence how the federal government shares its funding.
And if the administration connections aren’t quite there yet, look to elite donors who have major influence over liberal legislative efforts.
Attention will shift from the federal government “playing defense” to playing offense on local issues
The Trump administration made supporting innovation and social justice at the local level challenging, making people focus their efforts primarily on defending programs and their right to be funded.
Now, the focus can shift to supporting community-based issues that affect everyday people on the local level. Here is where social entrepreneurs can step in.
As a social entrepreneur, you now have the room to work hand-in-hand with government leaders to pinpoint efficient, effective and sustainable ways to solve social problems that were set on the backburner.
Enjoy the new room to do the work.
Now is a great time to start new ventures
2020 shed light on the multitude of unresolved social issues that continue to plague our society, concerning racial justice, public healthcare, education, human rights and more.
Now has never been a better time to start planting the seeds of new social ventures — or expanding existing ones.
Keep in mind that what’s important now will continue being so come 2021: You need to separate yourself from the crowd. Think of innovative ways in which you can go the extra mile to cook up never-before-seen ideas and solutions.
An unconventional way to go about doing so could be hosting a regular Mastermind with trusted associates.
In these meetings, members share their input and advice with the end goal of helping each other solve problems. More heads working together toward a common goal reaps more creative results.
TAKE ADVANTAGE OF THE NEW LANDSCAPE & PIVOT ACCORDINGLY
There are many reasons social entrepreneurs should look to benefit from the new, post-election landscape and pivot accordingly, including:
The ground is fertile for social growth
As federal and state governments attempt to curtail the damage of the pandemic, the ground is much more fertile for making a social impact these days.
We recommend you look to start a new venture or expand an existing social change project that provides the basics for underrepresented communities, such as shelter, food, water and mental health care.
As a social entrepreneur, you can bridge the gap where governments are unable to, looking for and providing solutions to pressing problems.
Funders will be looking for new social enterprises to take on
From bootstrapping and crowdfunding to grants, angel investors, and more, there are many ways to fund your social venture — and many funders looking to get an in.
Post-Trump, rest assured that funders will be looking for new social enterprises to dig their teeth into as the new administration rolls in.
When looking to pitch to funders, always have a solid understanding of your foundations. We’re talking about your mission, vision, unique story and the value you provide for the community. (The more specific, the better.)
Also, while yes, connecting with the real people who are funding you is key, it is equally as important to have a good handle of your finances with a clear path on how to scale for sustainable growth.
With these tips in mind, you’ll be on the right path to captivating potential funders.
New administration will be held accountable for its promises
The new administration talked a big game during the 2020 elections, with Biden proposing the Small Business Opportunity Fund.
This $30 billion investment program will be dedicated specifically to small businesses and entrepreneurial ventures. A third of that would specifically be directed to state and local initiatives that provide venture funding.
With that out in the air, organizations and activists can now hold the administration responsible for allowing them the necessary capital and resources to innovate for 2021 and beyond.
Navigating the post-election landscape in 2021 as a social entrepreneur will be as exciting as it is uncertain.
Nevertheless, by taking the proper measures to scope out funding while keeping your connections in mind, you and your social endeavor can thrive during these unknown times — especially with a new administration that outwardly supports social advancement.
