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How on Earth: Flourishing in a Not-for-Profit World Jennifer Hinton [email protected] Post Growth Institute Stockholm Resilience Centre

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Page 1: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

How on Earth: Flourishing in a Not-for-Profit World Jennifer Hinton [email protected] Post Growth Institute Stockholm Resilience Centre

Page 2: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

BoldHypothesis:

Not-for-profitbusinesshasthepotentialtosystemicallytransformtheeconomy

Page 3: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Whatare‘Not-for-Profit’Businesses?

“businessesthatprioritizepurposeaheadofprofits”

Page 4: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Comparedtofor-profitbusinessstructures,NFPs:•  Haveasocial/environmentalmissionastheirprimary

purpose•  Mustuse100%oftheirprofitsfortheirmission(noprivate

distribution)•  Haveaboardtoholdthemaccountableforpursuingtheir

socialmission

Page 5: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Thismeansthey…•  Seeprofitasameanstoachievingdeepergoals•  Areheldtohigherstandardswithregardtosocial

impact

•  Allowforan‘ethicofenough’

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ManytypesofbusinessesareNFP•  Consumercooperativesandcreditunions–e.g.-Coop

•  Mutualinsurancecompanies–e.g.– Folksam

•  Lotsofsocialenterprises(andmostcommunityinterestcompaniesintheUK)

•  Nonprofits/charitiesthatdobusiness

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Page 8: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the
Page 9: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the
Page 10: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the
Page 11: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

NFPbusinessisanewplayerintheeconomy:

•  Traditionalnonprofitsareincreasinglygeneratingtheirownrevenuethroughtrade

•  Anewgenerationofentrepreneursarestartinguptheir

businessesasNFP•  Allovertheworld,ineverysectoroftheeconomy

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Page 13: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Weliveinafor-profitworld.

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Products/Services

RevenueOperatingExpenses

Profit

Abilitytobuymoreshares

Dividends

Wealth For-profit business

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Commoneconomy

Eliteeconomy

Wealth Extraction Siphon

Page 16: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Whythefor-profiteconomyhastogrow:•  Psychological&socialpressuretomaximizeprofitrequires

growthofbusinesses•  Compensatingforextractedprofitsrequiresgrowthof

businesses

•  Competitionformarketsharepushesbusinessestogrow

•  Aneconomythat’sfullofbusinessestryingtoexpandtomaximizeprofitsmustgrow

Page 17: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Howthefor-profiteconomyleadstoinequality:

•  Goal:toaccumulateprivatewealth

•  Privatizationofprofit(extractionfromtherealeconomy)

•  Privateownershipofbusinessesandtheirassets,whichallowsownerstoaccumulateevenmore

•  Leadstospeculativeactivitiestoaccumulateevenmore

Page 18: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Howthefor-profiteconomyleadstoecologicalcrises:

•  Maximizeprofitatallcosts(Dominatormodel/utilitarian

approach/InvisibleHand)

•  Requiresconstantexpansion–  Convertingnatureintogoods,andrelationshipsintoservices–  Promotesconsumerism–  Inequalityfuelsconspicuousconsumptionaspartofstatuscompetition

Page 19: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Products/Services

RevenueOperatingExpenses

Profit

NFP business

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TheBusinessSpectrum

Page 21: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

TheExtractivevsGenerativeSpectrum

Page 22: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

NFPBusiness

MultinationalCorporations

Social

Enterprises

Cooperatives

Ethical/Green

Businesses

Local

Businesses

Page 23: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

• More equality • Real value creation (purpose-oriented economy) • Less consumerism

– more wellbeing and less ecological destruction

AnentirelyNFPmarketeconomywouldallowfor:

Page 24: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

NFP advantages

• Leaner • Tax exemptions, donations and volunteers

• Rise of ethical consumption and concern about social and environmental issues

• Work force increasingly motivated by purpose

Page 25: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the
Page 26: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the
Page 27: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Whatifthefutureoftheeconomyisnotfor-profit?

Page 28: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Practicalactions•  Citizens,activists,consumers

•  Entrepreneursandbusinessleaders•  Nonprofitemployeesandmanagers•  Civilservantsandgovernments•  Researchersandeducators

Page 29: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

•  Panacea•  Utopia•  Silverbullet

•  Itisarealisticbridgefromwhatwehavenowtosomethingmoresustainableandenjoyable

TheNFPWorldisnota:

Page 30: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

JenniferHintonPostGrowthInstitute

[email protected]

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Page 32: How on Earth: Flourishing in a Not-for-Profit World · • A new generation of entrepreneurs are starting up their ... •Work force increasingly motivated by purpose . What if the

Leveragepoints(DonellaMeadows)

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Ref:Göpel,M.(2016)TheGreatMindshift(p.47).


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