Can Philanthropy Help You Become A Better Entrepreneur?

There is no doubt that this generation of millennials has a strong urge to be responsible. This responsibility extends towards the environment, their society, and the greater good. The growth in the number of businesses engaging in CSR programs is a testament to the fact that philanthropy as an area of activity is growing.

While there are many articles and resource materials out there that speak about the benefits of charity for businesses, there are not many that talk about its effects on an entrepreneur.

The usual benefits like getting tax deductions, establishing social capital, and building networks can help businesses. However, the emotional and sentimental impact that it has on an entrepreneur at a personal level has not been discussed much.

In this article, we are going to address this key sentiment. We will discuss whether engaging in philanthropy can help you become a better entrepreneur. If you are a business owner that is sitting on the sidelines thinking about taking the plunge into philanthropy or understanding local crowdfunding, this article is for you.

The Essence of Philanthropy for Entrepreneurs: 3 Major Benefits

• Learning Empathy and Emotional Intelligence-

If you are an entrepreneur who is looking to improve your leadership skills, you must have come across the term ‘emotional intelligence’.

It refers to an understanding of the broad spectrum of reality and trying to make sense of a comprehensive whole. Learning empathy is also very important as it can help you better understand the feelings and sentiments of your employees.

Both these attributes can be learned, felt, and understood by engaging in philanthropy. It allows you to connect with a cause that is bigger and greater than your surroundings.

• Understanding Social Responsibilities towards the Society-

An entrepreneur and his or her business are not divorced from the real community that they operate in. Every entrepreneur should strive to make their local community better than before.

This will help with not only a sense of satisfaction but also ensure that the community stands with the business and the entrepreneur during the tough times.

This helps in creating a semantic relationship between the society at large and the entrepreneur along with their business. Over a period, this relationship helps in the setting up of a mutually beneficial relationship.

• Fosters a sense of Belongingness and Togetherness-

Philanthropy can come in many shapes and forms. It is not restricted to handing over annual cheques to a non-profit.

It could also mean volunteering, holding seminars and sessions for development, along running medical camps for health and diabetes check-ups. All this can give an entrepreneur a sense of belongingness.

They start feeling that they are an integral part of society and this encourages them to do more. This helps the business, the non-profit as well as the larger society where all of them exist together.

The Impact of an Entrepreneur’s Philanthropic Engagements on their Workforce

A lot has not been discussed on how the employees of an entrepreneur feel about their boss engaging in philanthropy. In this section, let us try to state some of the major impacts-

• Employees whose bosses engage in philanthropy are respected more. This respect is earned rather than being demanded. This also helps in creating a better culture at work.
• An entrepreneur who engages with philanthropy gets approached in a more open manner by the employees. This breaks down barriers to effective communication.
• An increase in levels of motivation is also something that many employees start feeling. This helps in better work productivity for the business organization.
• Entrepreneurs that introduce their employees to a non-profit cause benefit by creating a positive culture at work. Everyone wants to give back to society at some level.
• Philanthropic endeavors at work create tighter teams. Studies have also found that employees are more emotionally attached to bosses and businesses that do charity.

The Bottom Line

In this article, we have tried to explore how engaging in philanthropic endeavors can help entrepreneurs become better at what they do. This not only has a positive impact on the business but on themselves, as an individual as well. If you have any questions on how to choose a non-profit or what kind of engagement would you like to pursue, let us know in the comments below.