If you’re interested in a financial career, you might be curious about how
your interests can lead to reconciliation between your job and your belief
system. Social finance might open the door to several solutions for your
dilemma. While social financing might seem new, it’s been around since the
first individual took a stand against profit at any cost. A Quaker would no
more
finance
slavery before the Civil War than a
conscientious objector would
finance war machines today.
Before you have an epiphany about your career goals, you might want to learn
more about the various facets within social financing, the career
opportunities that are open to you, and the education you may need to pursue
your dreams.
Social Finance Defined
Social finance means that financial instruments are used to promote social
goals. Financial instruments used to accomplish these goals include credit,
savings, investments, and loans, among other devices. These tools help the
poor to cope better with risk, take advantage of income-generating
opportunities, to organize and to have a voice. These tools also incorporate
personal values and societal concerns with investment decisions, where
individuals or groups hope to support sustainable business efforts.
Social finance has, historically, belonged to governments and charitable or
religious organizations; however, with a focus on global warming and with news
about difficulties encountered by individuals in underdeveloped countries, the
private sector has become involved in this specialized field. While some
businesses and individuals seek to use funds for philanthropy, others want to
contribute with an eye to profit.
So, while the social goals may seem similar among most social financiers,
intents behind those goals may vary widely. For instance, a public corporation
and a private individual both may want to support lower income populations.
But, the corporation might want to eliminate poverty to create a new consumer
pool for their products while the individual might work toward the same goal
to support a belief in social equality.
Some Social Finance Careers
If you’re interested in financial matters, you already know that markets have
integrated to a degree, and that this integration - or globalization - means
that various countries have become more interdependent. Financial capital is
flowing into pre-emerging and emerging markets, where these funds help
individuals and communities meet social needs.
Social finance careers have expanded to the point where you can attend a
school in London that focuses solely on
social entrepreneurship. Whether your interests lie in a nonprofit or for
profit participation in this specialized industry, you might wonder where your
opportunities lie. Some social finance positions might include:
Community Investor: The community investor works with other
individuals to gather, oversee, and direct capital to community investment
opportunities in local or regional areas or abroad. The communities in
question usually have been under-served or overlooked by ordinary financial
services. You can learn about community investing and some organizations
involved with this outreach at the Social Investment Forum’s
Community Investing
Center.
Usually, community investors report to a board of directors and, ultimately,
to the shareholders of a company that organizes investing efforts. But, you
can work toward becoming a
venture capitalist
who focuses on community potentials rather than on new businesses. Or, you can
find a place within various organizations or on their boards.
Micro-Financier: Community investors can also become
micro-financiers, a role that is very similar to the venture capitalist but
that doesn’t demand return on investment in all cases. This individual seeks
to provide impoverished individuals or communities with the means to invest or
borrow money for business or community development. Usually these financial
transactions eliminate the need for collateral, and they carry smaller than
average investment requirements.
The micro-financier may work solo or for companies that range from financial
businesses to non-governmental organizations (NOGs). As a solo investor, you
can also become involved with opportunities provided by
micro-finance
networks that focus on helping individuals as diverse as your own family
members to unknown individuals in developing countries.
Nonprofit Sector: The nonprofit sector is, perhaps, the most
traditional arm of the social finance network. When you work for a nonprofit
organization or private foundation, you’ll usually report to a board of
directors or trustees, depending upon that organization’s legal structure. The
nonprofit sector is diverse, as it ranges from interests in the arts to animal
rights.
The nonprofit sector is also the most diverse when it comes to opportunities.
While some individuals are content to volunteer for nonprofit efforts, you can
also seek a career as an executive or work as a freelance grant writer or
project coordinator. The freelance positions may allow you to satisfy your
desires to provide help for various organizations and still pay the rent.
Social Entrepreneur: Unlike venture capitalists, social
entrepreneurs provide innovative solutions to difficult social problems
usually without seeking personal profit. This entrepreneur is similar to the
business entrepreneur in that he seeks to build something out of nothing with
creativity and ambition. Social entrepreneurs, however, see people or
communities in need rather than new businesses as their untapped markets.
Social enterprises include businesses that measure success by profits and by
community benefits. With that said, a career as a social entrepreneur could
combine the characteristics of altruistic nonprofits with for-profit
micro-financing to create a hybrid social financing opportunity. The
individuals involved at both ends often define whether the opportunity is
for-profit or nonprofit, but in all cases the project usually helps to improve
a community’s social situation.
What to Expect
If you’re already drawn to a
financial career in
accounting, investing, research, trading, banking or other areas, then you
know the specific thrills you gain from your interest(s). If you want to
incorporate a social angle to your career objective, you will also need to
expand your skills and experience through education and work. You can expect
to gain the following:
Interdisciplinary Skills: You will gain skills across
disciplines, as you may need experience in other fields other than financial
management. Sociology, anthropology, political science, and other studies that
are listed under social sciences or
humanities
will help you reach your goals. You can also focus on technological,
environmental, or leadership facets to social financial careers. Your
interdisciplinary needs will depend upon whether you want to focus more on
social or financial aspects within this field.
Leadership Opportunities: Social financing is a means to
create innovative ways to improve social environments, and this field needs
creative leaders who can take the initiative in many situations. Social
financing does focus on money, but that’s only half the equation. The “social”
aspect requires individuals who can identify unusual resources beyond money
that can be used to improve an individual or community situation.
So you can write grant proposals for projects, or you can search for
alternatives to funds to resolve a problem. Or, you can donate enough money to
sit on an organization’s board, or you can donate your time and energy to
achieve the same objective.
Business leadership
skills like those found in organizational, nonprofit, or project management
can open doors to many opportunities.
Flexibility: Careers in social financing currently may be
definitive or broad and fairly undefined. You many find a way to travel the
globe, or you may seek a situation where you’re alone and surrounded by books
and archival materials. Since this field is growing, however, you may find
that your job will demand a little of both worlds and more. This flexibility
is part of what many social finance employers seek, as their volunteers and
employees often wear more than one hat.
An ability to flex with a situation is also defined as “creative” and
“innovative,” especially when unexpected situations are met with little
complaint. A flexible situation can also be meaningful, as a job within the
social finance sector is well suited to people who want to use their skills,
talents, education, and money to bring about social change.
Global Knowledge: Even if you end up in a back office
surrounded by social financing accounting books, you will learn much about how
people live in other communities around the world. This global knowledge
contains many advantages for a person who seeks to move up the social finance
career ladder, or for the individual who eventually wants to become a social
venture capitalist or entrepreneur. Without knowledge about politics, cultural
influences, and other objectives that influence community development, the
social financier will waste time, skills, and money.
In addition, globalization requires specialized knowledge on how countries and
communities become interdependent. Whether or not you approve of
globalization, the trend toward interdependence is in motion. Your can use
your participation in a social financing career to support your beliefs.
Where to Begin
If a career in social financing intrigues you, you might want to conduct more
research and you’ll definitely want to try this field on for size. Your focus
can include local volunteerism, online reading, further education, and
conversations with individuals who work in the field.
Begin with Volunteerism: If you want to learn more about how
“social” connects to “finance,” you can volunteer to work with a nonprofit
organization. Not only will you gain experience on the ground, you’ll meet
individuals who can help point you in a career direction. You can also expand
your horizons to work in other regions as well. You can find nonprofit
volunteer and career opportunities online through sites like the
Nonprofit Career Network or
Idealist.org.
Find Other Social Financiers: When you link up with other
like-minded individuals, you can learn more about what to expect in your
career aspirations. You can find these individuals locally or online through
sites like the Social Edge or
Changemakers.net. If you plan to head
in the venture capitalist direction, you can find like-minded individuals at
the National Venture Capital
Association. While the individuals within this organization might not
participate in social financing, they can help you gain knowledge about this
investment field.
Expand Your Education: Even if you’ve accomplished a doctoral
degree, you can always learn more. Think about expanding your education to
achieve the cross-disciplinary expectations required by this industry. You
might consider that school in London, or you can find similar courses in
social entrepreneurship at
Duke University or at
Stanford.
You can also take it upon yourself to learn new languages, financial skills,
social sciences, and about environmental issues.
If you feel you can’t take the time or money to expand your education in a
campus or self-learning environment, then plan to join an organization at the
ground floor or as a volunteer. Sometimes experience can count for credits in
a later educational endeavor, and it always counts toward a career move when
others see your participation in action or on your resume.
All social finance organizations need financial personnel. From the
Red Cross to
Greenpeace to other
social organizations, you can find a niche that best fits your current
financial skills and social goals. If you prefer to work in investments, you
can learn from socially responsible funds and other investment opportunities.
Sites like Social Funds or the
Social Investment Forum can offer
opportunities to learn about investments that range from green initiatives to
funds that support minority groups. You’ll also learn more about the
organizations that offer these funds and investment opportunities.
No matter your direction once you get your feet wet in this field, you may
learn that financial opportunities don’t always lead to gluttony, lust, and
depravity. Nor will they all lead to living without the needs vital to
survival. Whether you lean toward nonprofit or for-profit careers in social
financing, you can find an area that needs your support and interest. You may
find that your new career will help you “do good” and do well.
Original post by Jimmy Atkinson and software by Elliott Back
