Good business needs good investors

Deciding whether a business is good or bad seems to be simple. At a first sight, but then…But what does it mean, a ‘good’ business? Good return, responsible handling? How much of what? 50:50? 20:80? 80:20?
Ever thought what kind implications a ‘good’ business have?

Thoughts around the good and bad business
A business without any short-term financial performance is bad, simply because it will not survive as an independent business and will not be able to become a long-term one. A business that by gaining money pays real attention to social and environmental influences and consequences is a good business. No doubt, a good business needs both: money and a responsible way of doing. The demand for both dimensions is there – and growing.

But how to manage?
Which is the right path to take? Can both demands be fulfilled parallely, always, and without damaging others? In a way that it is really successful by making a difference, having real impact? Or does it just lead to the golden middle way? A bit of money, a bit of social impact? Is the “a-bit-of-all” way the good way of doing business?
Which quantity of commitment to social issues is needed, how to distribute resources to gain money, how many resources to develop further the social impact?

Business owners, social entrepreneurs and good investors
Traditionally, for most small- and medium-sized enterprises, profit is the primary measure of success. Mainstream investors are looking for financial return.
But there are others outside. The social entrepreneurs on the business site. And those who are looking for responsible investment strategies – because they believe that companies that can create social and environmental impact and grow their financial business are the winners, although it will take more time.

Besides all the questions coming up, one thing seems to be pretty clear: Good business needs long-term investors who believe in it and who allow business owners to take care on all three aspects : ensuring financial, environmental and social growth . This requires more time – no doubt.

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