I guide my students through this value proposition every semester in my Social Entrepreneurship and Economic Development class at FSU. There seems to be a collective neurosis that to succeed in business you must win the race to the bottom (be the cheapest). Social Entrepreneurship, in stark contrast, predicates that people be loyal to brands with the product/service that offers the best value.
The Academic Exercise goes as follows:
Me: Given seemingly three identical cups of coffee: one costing $1.75, second $2.25, and third $2.35; which one would you choose?
100% Students: The coffee costing $1.75
Me: Right. Me too. Now, what if I told you cup #1 has unethically sourced coffee and cups #2 and #3 are ethically sourced?
90% of Students: We would buy cup #2, the ethically sourced coffee costing $2.25.
Me: Right. Me too. Now, what if I told you that cups #1 and #2 use chemicals that are harmful to the environment and clear-cut rain forests to have bigger crop yields?
85% of Students: We would buy cup #3, the earth friendly, organic coffee costing $2.35.
Me: Right. Me too. Now, what if I told you cup #3 is also served in earth-friendly cups, made by a barista earning a fair wage, and 100% of the profits go to local and global empowerment charities?
95% of Student: We would buy cup #3, the ethically sourced, organic coffee, with a social mission.
That is a Value Proposition.
Social Entrepreneurs run a different race.
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