In post-pandemic economic reconstruction, businesses purpose will be more valuable than ever
By Daniel Tricarico. Founder and CEO IMPACTLATAM, a platform that seeks to link 100 sustainable startups with the world's leading investors.
«When an economy is in crisis, entrepreneurs push itis the title of the Impact Report 2020 carried out by Endeavor Chile, which admits that the year 2020 made visible the impact of entrepreneurs and how they can transform the country.
In 2010, the charismatic Adam Neumann founded WeWork and presented himself to the world as a disruptive leader who came to change labor relations and the future of business forever. The long-shared tables, the beer on Fridays at 5 in the afternoon and its mission to "raise the consciousness of the world" in the different offices opened in many cities seduced thousands. This is how the company had a rapid expansion that transformed it in a short time into a case worthy of study.
However, in 2019 his IPO failed and that is how the excesses and abuses by the management team (mostly Neumann and his wife Rebekah) were revealed. WeWork accumulated large losses, which impacted in a resounding drop in its price, the takeover by its majority shareholder -Softbank- and the consequent removal of Neumann from the board of directors. The complaints to the CEO were of all kinds, including that he bought buildings and brands in his name and rented them to the company. Part of all this is recounted in the new documentary "WeWork or the making and breaking of a 47 billion Unicorn" premiered on Hulu.
Eleven years after that flashy start - and with a pandemic in between - the business world seems to have started to change. The ecosystem of entrepreneurship and innovation begins to look with suspicion at excessive ambition and excesses, often justified by the idea that “it improves people's lives”.
«Change is on the way. We are on the top of a powerful new era that harnesses regenerative practices, with an unparalleled opportunity to reshape the way we live, learn, work and do business for the better» admits the latest Wunderman Thompson report. The pandemic has brought a growing appetite for change, and people are looking for brands to lead this emerging new path.
The new paradigm of purposeful ventures transcends business per se and is seen as a source of economic, social, and environmental impact. Until a few years ago these elements seemed incompatible, but today, they are already a reality.
Algramo setting the example
An innovative case that accounts for environmental awareness, as well as economic and social inclusion, is Algramo. In 2013, on Earth Day, this social enterprise was born aiming to revolutionize the way people consume. In Chile, approximately 990,000 tons of plastic are consumed per year, of which only 83,679 tons (8.5%) are recycled. The company offers a consumer alternative through reusable smart packaging, promoting the circular economy and leaving out single-use plastics. In 2019 they sealed an alliance with Unilever to distribute their products in reusable packaging.
The big question of the post-pandemic awakening was about the purpose, the what for is being done what is being done. The pandemic forced us to stop and rethink our production and consumption habits, giving more awareness to how we choose and what we choose.
Specifically, triple impact technology companies, noted for generating employment, wealth and innovation, attract investors throughout the region. According to the CBInsights 'State of Venture Report' report, during the second quarter of 2021, Latin American-based technology companies managed to attract $ 7.2 billion in venture capital investments.
Triple-hit startups never had a better scenario to get along with growing and scaling. The concept of success in the corporate world is undergoing a transformation based on not only measuring the economic dimension and the return to investors, but also incorporating the impact dimension in the model of return to multiple stakeholders, society, and environment.