Defence of the business model – the regenerative start-up
Defence of the business model – the regenerative start-up
In the face of environmental breakdowns, unprecedented in human history, it is becoming urgent to rethink how we live and organise ourselves as a human society.
Climate change, extreme weather events, melting glaciers, biodiversity collapse, global pandemics, depletion of natural resources… The alarm bell has been rung.
These ecological disruptions that occur in all four corners of the world highlight certain limits that we must face: the finitude of planetary resources, but also the limits of our development as we know it, i.e. a continuous development based on the extraction and exploitation of these same finite resources.
Each of us is affected by these global changes. Each of us also has our share of responsibility, at our own scale. It is irrelevant to focus only on one culprit or one responsible industry… It is about being able to transform all industries and all sectors of our society, in a collaborative way, in order to limit the disaster and adapt to this changing world.
In the notorious triangle of individuals (civil society), companies (the private sector) and governments (the public sector), everyone can find their place to act and transform our way of living. The objective is to be able to regain our place as human beings in a living web from which we have extricated ourselves for too long, in order to continue to live adequately on this planet, rather than suffer our own destruction.
With Koraï, we decided to act within the private sector by creating a start-up. Our mission is to regenerate Africa’s marine ecosystems by involving companies that wish to solve the ecological and social challenges resulting from biodiversity loss and climate change.
In today’s world, where profit is associated with resource extraction and positive actions for the planet are associated with non-profit organisations, the form and relevance of our business model are often questioned.
In this article, we explain to you why we created a start-up to address the decline in marine ecosystems, why a corporate model is more relevant than a non-profit model in the face of the emergency, and how capitalism has a vital role to play in the regeneration of resources and the living world.
The limits of the non-profit sector
“Why not create a non-profit organisation?”
This is probably the question we are asked the most when we mention our choice of creating a start-up. This is because the majority of projects that aim to “do good”, whether from a social or environmental point of view, take the form of a charity. For most of us, the non-profit sector is the only model that exists today to implement virtuous actions.
But the non-profit sector has many limitations that can hinder the development of these same actions.
First of all, since profit cannot be generated, it is difficult for a charity to set up a commercial approach and generate profits to be used for the deployment of the organisation. Thus, the non-profit model depends on public subsidies, grants and donations. Public subsidies are more or less decreasing everywhere, and donations depend on the public’s generosity or philanthropists that must be successfully mobilised. This dependence poses major financial constraints on the deployment of the actions.
Moreover, charities mainly rely on the volunteer help of people who wish to offer their time outside their main job and who wish to commit themselves to a cause. Although the values that unite these people around the project are remarkable, the limits of time and energy dedicated to the actions are much more present than when a whole team of full-time hired people is involved.
Today, all charities and NGOs agree on one point: the financial resources they have available to develop their actions are insufficient. The search for funding is a central part of all organisations, often to the prejudice of their actions and sometimes even hindering the founding values of the organisation when it has to join forces with the private sector to find sufficient funds.
Breaking boundaries through business
References – Going further
Insérer votre contenu IciIf there is one reason why charities turn to the private sector, it is because money is there, and in order to develop impactful actions, funds are needed.
So why not create a business directly, with the ultimate objective of achieving virtuous actions, in the same way as a charity?
The business model of the company overcomes the limits imposed by the non-profit world by allowing profit to be generated, which can then be reinvested into an environmental or social objective. A commercial activity then allows the independence of the company, reinforcing the strength and durability of the project.
The profit generated is also useful for job creation. A company has the capacity to bring together a team of people who have the opportunity to make a career by using their time and energy for a virtuous goal. In addition to improving the economic situation of each individual, developing a workforce also accelerates and accentuates the company’s capacity for action.
About the Author: Louise-Océane Delion
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