In the world of social good, a socially responsible enterprise provides a return while making the world a better place. Some women realize that and are educating themselves to assess investments rather than give their money away. By Geri Stengel (Contributor, Forbes)
Recently I wrote about a new funding source for entrepreneurs: crowdfunding. Right now, small businesses can raise money from the online crowd in exchange for a give-away, such as a product or service. Hopefully sometime in 2013 the rules and guidelines for the Jumpstart Our Business Startups (JOBS) Act should be approved, which will allow companies to give equity to crowdfunding investors in the U.S.
I was optimistic that this new funding tool would be used by women entrepreneurs to raise money. After all, women are great collaborators and communicators, both necessary skills if you are going to succeed at crowdfunding.
However, I was struck by the proverbial thunderbolt, when I read Women, Finance the World You Want by Whitney Johnson. One female social entrepreneur she interviewed from Fast Company’s League of Extraordinary Women chose to be a nonprofit rather than a for-profit because she felt women were willing to donate freely to her cause, but would not invest in it as a business. “When you donate, you are giving something. When you invest, you can expect a return,” writes Johnson.