Why Entrepreneurs Should Embrace Purpose-Driven Capitalism

Bench Accounting x Unsplash

It’s easy for young entrepreneurs to see monetization and profit as the main drivers for a startup, rather than focusing on developing products and services that solve problems. But humanity faces a wide range of challenges today, from climate change to social disharmony, meaning that purpose-driven solutions appeal to an ever-growing range of consumers.

The Internet Age has given all of us an expanding awareness of the effect our actions have (or can have) on the world around us. This isn’t to say that social consciousness, purpose-first businesses or companies with positive externalities are a new concept. Purpose-first businesses have existed in one form or another for centuries, but the internet has brought about an era of increased awareness and acceptance of the Butterfly Effect, driving more entrepreneurs to a purpose than ever before.

Thanks to the ability to instantaneously share information, millions of people can quickly learn about issues and solutions, from racism in the justice system to the positive impact of recycling. Increased awareness means that we can all adjust our behavior or mentality accordingly. In the realm of business, this has led many entrepreneurs to adopt a concept known as “conscious capitalism.”