Preparing the best ventures for flying high, not burning out
Within the impact field “Support” SIA helps the most promising young social entrepreneurs with know-how, mentoring, access to networks, and pre-seed funding. Besides our award scheme, we do so primarily […]
Within the impact field “Support” SIA helps the most promising young social entrepreneurs with know-how, mentoring, access to networks, and pre-seed funding. Besides our award scheme, we do so primarily through our annual incubation program for the most promising ideas and social enterprises, which has become an established part of SIA’s core activities since 2016.
Both our ongoing impact measurement as well as our long-term studies with SIA alumni strongly indicate that our support offers are relevant and effective. Among SIA winners, 77% still run their ventures after 3.5 years, compared to 47% of those who did not win. On average, they employ 5.14 staff, 12 volunteers, and make EUR 30k annual revenue. Additionally, 58% of the ventures have received external funding. Beyond the impact on their primary beneficiaries and missions, many ventures report systemic impact. 75% created products and services that previously did not exist and 44% suggest that their ideas have been adopted or copied by other system actors.
Our ongoing assessments suggest that there are two key impact drivers for such positive long-term results. Primarily, it is SIA’s focus on the validation of both impact and business models during the incubation programs. Gaining a deeper understanding of the realities and needs of the respective beneficiary groups, building, and testing prototypes, and validating the willingness of potential customers to pay for the intended services or products – these activities are of primary importance in this early venture development. Secondly, it is the fact that SIA’s support is offered through individual mentoring by experienced industry experts. Compared to any other support offer (e.g. cohort trainings) individual mentoring over a longer timespan has proven to be the most effective method to bring nascent entrepreneurs from the concept stage to market launch. Consequently, both of these impact drivers are at the core of our support strategy for the upcoming years.
Based on these process-oriented objectives, SIA aims to incubate annually 230+ promising social enterprises and award the best 85 social enterprises (incl. pre-seed funding) by 2023. Through our mentoring and connections, 80% of our incubated ventures will have found a verified problem/solution-fit and 75% have successfully initiated their process to find a verified business model.
Which areas of development are targeted in the SIA strategy?
Besides these ongoing elements, SIA’s strategy in the “Support” impact field also considers areas of development for the next four years. First, it is SIA’s strategic objective to increase the representation of female and diverse role models in our incubation programs and among our winners. This will be supported through various measures such as gender quotas in SIA’s selection bodies, a reworked selection process, a stronger promotion of female and diverse role models in our communication.
Secondly, it is an even stronger emphasis on the topic of wellbeing in our incubation programs. Our recent studies among SIA’s cohorts indicate that more than 10% of our incubated entrepreneurs are exposed to a high burnout risk and an additional 50% should prophylactically take measures to avoid future burnout. Among SIA alumni, 78% report episodes of stress, which in some cases had negative effects on wellbeing. 43% suffered from symptoms of burnout at least temporarily and 5% reported that they had to quit working entirely due to burnout.
As an early-stage intervention program, SIA has the opportunity to strengthen the capabilities of nascent founders to develop a healthy attitude towards their leadership roles and a resilient team culture.
SIA has already started several initiatives around the topic of wellbeing in the last two years and will continue to do so in the upcoming period. Measures will include individual coaching elements, peer-to-peer formats, and inspirational events on the matter. Moreover, SIA will continue to conduct research on wellbeing and compassion fatigue among its former and current participants.
In the next blogpost of our series “Rebooting Social Innovation”, we will focus on arguably the most interesting aspect of SIA: its alumni community! How can we empower our alumni to serve as role models for the next generation of social entrepreneurs? And how can we help our alumni to scale their ventures and bring social innovation to the next level?
This is the fourth article of our blog series on the topic of SIA’s strategic approach for the period 2020-2023. Find the links to all other blogs here:
Beyond the crisis: A post-pandemic world needs social innovation more than ever
Raising awareness among the youth: Why we won’t bring the Silicon Valley to Nis
Education and training: Local roots for global content
Supporting nascent social enterprises: Preparing the best ventures for flying high, not burning out
SIA’s alumni community: Building a peer-community of young leaders
Deepening our impact: Stronger collaboration to achieve a common mission
Scaling our impact: Growing in an ambitious, yet healthy way
Strategizing with multiple stakeholders: An honest and intense look inwards and outwards