Luiz Gustavo Ortega

Social entrepreneurship is now a growing reality in Brazil, albeit on a modest scale, in light of the challenges faced by developing countries in relation to the inequalities of its population. Our experience in participating in the acceleration projects of startup companies with Braskem Labs has shown us that most of them seek to achieve a social impact with their business in order to improve life conditions around them. This desire is so natural that many young entrepreneurs even mention it as a goal in their companies. Among the many points that unite us is the belief that our business can provide more quality of life and well-being for people.

Currently in its third edition, the acceleration program annually selects roughly 10 projects from registered companies, using their innovation content, market potential, entrepreneurial profile, and social and environmental impact as criteria. Based on this selection, the selected ones undergo an initial diagnosis stage in which the characteristics and needs of each business are evaluated. In general, the diagnosis confirms what common sense already knows: idealism and enthusiasm are insufficient for turning a great idea into success.

Based on the evaluation of the strengths and weaknesses of each participant, a customized four-month mentoring program, developed by specialists in the disciplines recommended for each specific case, is developed, with the support of a Braskem mentor. To support us in this mission, we have the competence of our partner, ACE, the best accelerator of companies in Latin America. At the end of the process, participants have the opportunity to present their projects to a group of investors, entrepreneurs and business consultants and partners in our value chain, serving, as a minimum, as a networking reinforcement.

Many of these entrepreneurs have the natural and understandable expectation of attracting an investor to leverage the consolidation of their business. In order to fulfill our role of guaranteeing the social impact of the projects, whose assumption is the survival of those who are ahead of them, we often have to show them that it is essential to be well-prepared before taking the investment: Having well-defined business plan, understanding the competition, knowing how to attract new customers and communicate with the public, having a suitable structure, etc. It is also our responsibility to encourage them in the planning of their future in order to ensure the scalability of their business.

Based on our experience, we are aware that companies can do a lot, but they cannot do everything to equate the social demands around them. They can make private social investments in education and healthcare, for example, but rely on the government for the construction of schools and hospitals. Although it has budget constraints to invest in social facilities to the extent of what would be necessary, the state should at least avoid becoming an impediment to those who wish to fill gaps in a subsidiary way. In this sense, there is concern about speculation that the government intends to tax angel investments made by social entrepreneurs. If this is confirmed, it would be a major discouragement to those who wish to help in the solution of our social and economic problems.