Saturday, January 18, 2014

Macro-economic change brings opportunity

Three major types of change increase opportunities for non-profits and foundations. They are technological, social and demographic; and political and regulatory changes.  The savvy social entrepreneur can identify the changes on the horizon and strategically position the non-profit to ride the wave of opportunity that advances.
The opportunities not only create new markets, missions and goals, but they also alter the effectiveness, efficiency and impact of the organization.

A technological change massively expands innovation, as in the case of using computers in the classroom and now e-curriculum like Khan Academy. However, keep in mind not all technological change is commercially viable. Some change may even trigger how competition and operations work, as in the case of social media and fundraising for non-profits.  With the emergence of the internet, blogosphere and twitter-verse, there is a much more level playing field and a greater expectation for transparency within the governance of non-profits than ever before.  

Social and demo-graphical change always increases opportunities because the customer and market segmentation shifts as well as the wants and needs of the people. The social trend of drinking bottled water leads to opportunities for non-profits concerned with environmental conservation. The aging baby-boomer generation leads to opportunities for non-profits working in health care and home healthcare. The needs for assisted living centers, Spanish educational content and organic food stores are greater than ever before.

On the other hand, political and regulatory changes can both enhance or restrict opportunities for non-profits depending on the impact and nature of the change.  A legislative bill cutting long term unemployment benefits may constrict the household finances of the poorest in the country. But a program focusing on revitalizing and providing capital to the poorest neighborhoods can enhance the job outlook for the citizens.

Non-profits can benefit from these changes by identifying the gaps and quickly positioning themselves to be of service.  

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