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We are the second generation business

July 18, 2012 in Social Entrepreneurship

Business 2G – as we call it, is a whole new approach to making business. The key principle is that the money are not in the first place, which is the tradition in the “first generation businesses”. That also, by the way, leads to many problems in society on global scale as we can clearly see these days.

The main pillars of the second generation business are:

  1. Money are not in the first place
  2. Social Awareness is part of the business
  3. Earnings are fairly shared among all participants

1. Money are not in the first place

Ironically, the most of the first generation  businesses were founded that way, when an entrepreneur or a group of entrepreneurs started their project just for fun or for a personal satisfaction. When they achieved a commercial success they – often unconsciously, transformed their “children of love” into a money machine and the original “juiciness” slowly dried out.

The second generation business cares about not slipping on the slope of money hunting. But that doesn’t mean it completely rejects any income. The income may come and in fact it may be very good, if something extraordinary is invented.

The difference between the first generation business and the second generation business is that the second generation business isn’t fixed to the success but keeps the same attitude without taking financial matters into account more then necessary. Because of that it always has “free hands” and “clean mind”.

2. Social Awareness is part of the business

Social awareness is already included in the first point because society benefits from the second generation businesses much more then from the first generation businesses. It’s because the second generation business keeps coming with new products and services while the first generation business is motivated towards change only when losing its position on the market, which unfortunately can be maintained artificially (and very often is), using the accumulated financial resources that allows to suppress any growing competition. Thanks to this we can see a large amount of businesses and corporations in the world that keeps their privileged positions despite the fact they don’t offer the best products on the market.

Except that it is also expected from the second generation businesses to actively support the development of the society that it is part of.

3. Earnings are fairly shared among all participants

First, it’s fair to the people who generated the income with their work. It’s also much more humane approach because employees are not dealt simply as hired labor but rather as partners with their share on the company’s success. It’s also fairer model for the whole society because the earned money are not accumulated on the accounts of companies but instead are distributed back into the circulation which helps to create balanced and healthy economy without stagnation caused by frozen finances accumulated on very few and very fat accounts.