A Social Entrepreneur’s Salary
Everyone loves to be rewarded for their efforts. No wonder, employers increase salaries and promote workers who show incredible performance in their line of duty. In that same way, social entrepreneurs would want to feel appreciated after days and years of hard work. In this regard, the question one may want to answer is- how much money should the entrepreneurs be paid? Or better still, how do you determine the amount of salary for a social entrepreneur? Well, everyone can agree to the fact that you can never reward the act of innovation. In other words, there is no amount of money that can be considered enough for someone who makes a huge impact in the society. On the flip side, some entrepreneurs may be considered to earn too much depending on the size of their venture.
There is a big debate on whether the CEO of a social venture should be paid the same amount of money as that of the traditional entrepreneur. The traditional entrepreneur may decide to increase their salary based on the returns on investment. On the other hand, the social entrepreneur may not make profit. In any case, those who make profit should channel it towards changing the society. Thus, the issue of earning and increasing a salary for them can be tricky. Some of the experienced entrepreneurs have confessed that they never received any salary for the first few months. Even when they finally got some salary, it would never equal the effort they put into establishing their venture. Perhaps, their biggest reward was to see the world change for the better. And isn’t this what we expect of every social entrepreneur?
Another issue under contention is about who determines the salary paid to the management and subordinates in a social enterprise. Naturally, people would want to get the maximum compensation for all their efforts. It is for this reason that many private and public organizations appoint a board of directors to determine the salaries of the workers. Structures are also put in place to guide the organization when a need to increase salary or reward bonuses arises. The social entrepreneur may not have a board or structures to determine their salaries. The situation is particularly true when the entrepreneurs are just starting up and making little impact.
One may want to consider the ethical perspective in the issue of rewards in entrepreneurship. When donors invest into such ventures, they expect that more impact is made in the society. Few will hope that the entrepreneur will reward themselves heftily. In fact most of them will look into the issue of accountability and transparency in the venture before they offer any help. Sadly, some entrepreneurs have a way of convincing donors that all the money is spent wisely when in reality it ends up in the pockets of the management. Even so, there are still so many social entrepreneurs who have the best ethical and moral standards in such matters. They, therefore, get rewarded and fulfilled every time they see the impact they are making in the society.