The idea that you can make money and deliver a social benefit is hardly new, but David Musto brings new research that finds that social enterprises and their funding are sustainable, at least in their current form. And the timing couldn’t be better. Why? Because social enterprises are tapping capital markets for funding.
The following scenario is more plausible than ever: Say, a “doing well by doing good” type of firm, imagine a public version of Warby Parker, put itself up for sale. Let’s say the firm received one bid in which it was stipulated that the buyer would maintain the firm’s buy-one, giveaway-one model. Suppose another buyer came in at $10 more per share, but the higher bid was contingent on the social enterprise giving up its social component. Would a Warby be forced to take the higher bid?
