Selecting the Best Industry - knowledge conditions

Selecting the best industry to serve, impacts the chances for success. Social entrepreneurs need to identify the knowledge conditions that make an industry favorable.

Knowing these conditions leads to better understanding on whether or not it is attractive to join a particular industry and how to compete effectively within the chosen industry.

Knowledge and expertise is one key condition. The social entrepreneur must ask themselves if they need specific expertise in the field. Is this industry a high-knowledge focused, or is it based more upon finances, location and relationships? Keep in mind high-knowledge industries have high barriers to entry, meaning only people with expertise can compete effectively.

To optimize your own knowledge, try to align with your work or educational experiences and seek ideas that use your own know-how, interest and social capital (network of friends, family and peers).  When you stay within your own field you can build on what you already know and see opportunities that others do not. Keep in mind that you can always partner with a co-founder to expand knowledge and add to social capital.

For example someone who has worked in the restaurant industry for many years might have the knowledge to run a soup kitchen. And since this is not a high-knowledge industry, other factors like the location of the facility may play a more important role.

Compare this to a computer science major that has no experience in space exploration, a high-knowledge industry.  This entrepreneur would have to identify areas lacking knowledge and should partner with someone who has the right know-how and experience.