View original article: Rich, forget charity, start businesses: McNealy (CNBC)
I am a very charitable person. And I will continue to be. I garner significant joy from providing others with transformational gifts that help their cause. But I’m going to throw something out there for discussion to see if I can get a reaction. What if I stopped giving to charities and instead invested in small businesses? What would the measure of my social impact be?
More millionaires and billionaires could listen to McNealy’s sound advice in the above article that got me thinking about this concept, and give their money to small businesses, not charities.
Small businesses create jobs, stimulate the economy and provide stability. These are often the problems that charitable foundations and organizations are trying to solve. However, small businesses have long-term benefits, whereas many philanthropic endeavors’ stop once the money runs out.
Let’s think about it. And let’s use a non-profit as an example to deepen my point.
Let’s say a person has a strong passion for service dogs. They have a business degree but do not have the means to get a company off the ground. Imagine what $100,000 dollars could do to help that person get their non-profit going. They could find a facility, hire a couple of full time staff members, and get the supplies and marketing they need to take off.
How many people could they hire? How much money could they put into the economy by hiring veterinarians, trainers, food suppliers, animal researchers and animal service specialists? Imagine the amount of money they could make and reinvest in their company by doing educational/promotional activities? By charging fees for services? For training? For the trained dogs? All the money they generate is filtered back into the economy and it provides people (and in this case, animals) jobs. Plus, it is a charitable, humane business.
If a billionaire invested even a small amount into a savvy small business, nonprofit or for profit, the lasting economic effects would resound.
Thoughts my friends? (firstname.lastname@example.org)