the government as ally

By Doug Sudell

Director, Social Franchise Ventures
 

If you could speak to your local, state or federal government representatives, what would you tell them about social enterprise? In September, Social Franchise Ventures attended the International Franchise Association’s Franchise Appreciation Day, a two-day event that brought together several thousand franchisees and franchisors from all over the country to Washington, D.C., to learn about important legislation that affects small-business owners and to make congressional visits on Capitol Hill. The SFV team’s objective was to advance our goal of educating elected officials about the benefits of nonprofit organizations harnessing the power of existing franchise offerings to launch and grow social enterprises.

Social entrepreneurs should consider integrating government relations into their efforts to engage stakeholders. This is an opportunity to share information with government officials that highlights the ways social enterprises contribute to our communities – economically and socially. A government-relations strategy requires the same mindset needed for running a marathon, rather than a short sprint. Based on our experience, I’d like to share a few tips for developing a thoughtful and long-term strategy to engage local, state, and federal officials.

The Message Is Key
The first consideration is what your message should include. For example, a nonprofit’s social enterprise benefits your community and thus your government officials by:

• Creating community wealth by offering needed services or products in your local community.

• Increasing the tax base.

• Adding employment opportunities for your elected officials' constituents and teaching transferable skills.

• Attracting other entrepreneurial activities either from competitors or from groups offering complementary services or products.

The goal of an effective message is to position your organization as both a mission-oriented group serving your community and as a small-business operator helping to drive the economy. This will help create opportunities to sell services, gain access to resources slated for small businesses, and increase your organization's sphere of influence. As a result, your venture could tap into government policies and resources such as below-market loans, service contracts and positive PR and recognition.

Steps to take:

• Determine the ideal recipient of information regarding your social enterprise. On a local level, this might be the representative herself or, on a state or federal level, a staff person dedicated to economic and small-business development.

• Develop regular – monthly or quarterly – communication tailored to your local, state, and federal officials. This should include a brief description of the products and services offered as well as specifics such as the number of employees, number of units sold, number of customers, and gross revenue generated during the reporting period and to date.

• Participate in small-business networking and social events sponsored by your local, state, and federal representatives.

• Set up meetings with legislators or their staffs on an annual or semi-annual basis to keep them up-to-date on your progress, your contributions to the community, and any issues with which they might be able to help you. It also keeps you on their radar screen even if there is significant turnover among government staff members. Bring the social enterprise manager with you to create or enhance an existing relationship while highlighting the business objectives and goals of your social enterprise.

This process might not lead to instant gratification or the exhilaration that comes from running a 100-yard dash, but in the long run you will be increasing your organization's sphere and depth of influence, which will create opportunities to strengthen and grow your social enterprise. The cost of incorporating a government-relations strategy into your marketing plan is nominal, and the effort is bound to enhance your organization's reputation and its ability to generate additional social-enterprise revenue.
 

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