The role of local business in a pandemic
By Emily
[O]ur contacts shared that their firm, a solar panel social enterprise, had become the trusted organization responsible for COVID-19 relief funds within the favela. Driven by their credibility in the community and access to a bank account, the client now oversees both collecting donations and distributing them to the community as aid for the current health crisis. [It] had me thinking about how being in this position will provide opportunities and challenges the client’s solar panel business endeavors.
On our final client call for this project our contacts shared that their firm, a solar panel social enterprise, had become the trusted organization responsible for COVID-19 relief funds within the favela. Driven by their credibility in the community and access to a bank account, the client now oversees both collecting donations and distributing them to the community as aid for the current health crisis. I was surprised when I heard about the client’s new role in the community. I would have expected these responsibilities to fall to the local government or NGO as opposed to a small local business. However, it also had me thinking about how being in this position will provide opportunities and challenges the client’s solar panel business endeavors.
On one hand, being selected by the community to be responsible for their livelihood speaks volumes to the client’s reputation in the favela. It shows how as an organization they have been able to gain both the awareness and trust required to have ownership of donated COVID-19 relief funds and power to determine how best to spend these funds. Playing this role in the favela will continue to build the client’s positive reputation and I believe will help them in advancing their business mission. Concurrently, the client is also forging relationships with high net-worth individuals and corporations who are donating the funds. These donors are trusting the client contacts have the capability to manage money and produce results. As our client is ultimately looking for impact investors in their business, the situation provides an opportunity build a track record with the parties that could be potential investors.
On the other hand, assuming this role in the community could create challenges for the client in moving to the next phase in their business. First or foremost, taking on this additional responsibility is using time and resources that could have otherwise be spent on growing the business. Similarly, there is currently no perceived end date to this pandemic. As such, there is uncertainty for the client of when these dual responsibilities will end. This may affect long term planning for the business and what they will realistically be able to accomplish. An additional challenge could be maintaining their core purpose within the community. While they are establishing a positive reputation in the favela, it is not for solar panel installation. This could create confusion in building awareness of who they are and what they offer as a business.
Overall, I think the role that the client is now playing is essential. The favela is struggling with COVID-19 and in need of food and health aid. As building community is a key component in our client’s business, in addition to their environmental goals, taking on this responsibility is aligned with their values. However, I believe it will be important for the client to be diligent in spending time on organization initiatives to make sure the business continues to move forward.