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Questions and Answers

What is the main difference between the post-growth movement and the degrowth movement?

The post-growth movement focuses on individual business practices to achieve a post-growth economy, while the degrowth movement focuses on broader societal change through economic and political restructuring. (correct)

The post-growth movement aims to create a world where growth is no longer necessary, while the degrowth movement emphasizes thriving in conditions where growth is decreasing.

The post-growth movement emphasizes 'non-extractive businesses' while the degrowth movement focuses on reducing overall consumption and resource use.

The post-growth movement is focused on creating a sustainable economy within the current growth model, while the degrowth movement advocates for a radical shift away from economic growth.

Which of the following is NOT a characteristic of post-growth entrepreneurship?

Emphasis on bootstrapping and starting businesses without external capital.

Focus on maximizing profit through resource extraction. (correct)

Prioritization of social and environmental benefits over profit maximization.

Adopting a 'flat growth' approach, emphasizing sustainable business evolution instead of rapid growth.

According to the content, which of the following is an example of how the Post-Growth Entrepreneurship Incubator fosters a holistic approach to business?

The incubator provides access to a global network of entrepreneurs, facilitating collaboration and knowledge sharing.

The incubator provides practical support for startup founders through online workshops and resources, enabling them to apply post-growth principles to their businesses.

The first cohort was held on the Dutch island of Terschelling, combining personal development and startup bootcamp elements to stimulate holistic thinking. (correct)

The incubator focuses on developing strong impact goals and business model canvases to ensure businesses are aligned with post-growth principles.

What is the main challenge in applying post-growth principles to existing businesses?

Established structures, shareholder expectations, and corporate cultures may resist a shift away from profit maximization and growth. (B) Signup and view all the answers

Which of the following is NOT a key stakeholder relevant to Post-Growth Entrepreneurship?

Large corporations seeking to improve their environmental and social performance. (D) Signup and view all the answers

Why is determining fair compensation a complex issue in the context of post-growth entrepreneurship?

Different stakeholders may have conflicting views on what constitutes fair compensation, particularly when it comes to balancing individual needs with broader social and environmental goals. (C) Signup and view all the answers

What is the central message of Monica's story, showcasing her two businesses, Sister Speaks and Heels for Pads?

Monica's story highlights the importance of business model canvases, establishing strong impact goals, building networks, and sharing knowledge for successful social entrepreneurship. (B) Signup and view all the answers

What specific aspect of Monica’s social entrepreneurship is most closely aligned with the core principles of post-growth entrepreneurship?

Sister Speaks for-profit company uses a cross-subsidization model to support Heels for Pads. (B) Signup and view all the answers

Which of the following examples from the text is a successful example of the non-extractive transition of an existing business, as defined by post-growth entrepreneurship principles?

Yvonne Chouinard's decision to transition Patagonia into a climate foundation, prioritizing environmental sustainability over profit. (A) Signup and view all the answers

What is a primary reason for the Post-Growth Entrepreneurship Incubator's decision to hold the 2021 and 2022 cohorts online?

To expand the reach of the program and include founders from diverse geographical locations and backgrounds. (D) Signup and view all the answers

Which of the following statements accurately reflects the ethical dilemma faced by Impact VCs?

Impact VCs face a conflict between maximizing financial returns for investors and prioritizing their commitment to social impact. (B) Signup and view all the answers

What is a key characteristic of a social entrepreneur who embraces the concept of 'Steward ownership'?

They seek to structure their company as a non-profit entity to minimize pressure to sell for financial gain. (C) Signup and view all the answers

How does the traditional 2 & 20 fee structure in commercial VCs potentially undermine social impact?

It incentivizes VCs to prioritize quick profits over long-term sustainability. (C) Signup and view all the answers

According to the content, which of the following is a potential criticism of philanthropy?

Philanthropic endeavors often lack transparency and democratic processes in how wealth is distributed. (C) Signup and view all the answers

What is a key characteristic of 'Post-Growth' entrepreneurship?

It challenges the idea that continuous economic growth should be the primary goal of society. (C) Signup and view all the answers

What is the primary purpose of the 'Limits to Growth' model?

To predict the consequences of continued economic growth on resource depletion and environmental degradation. (B) Signup and view all the answers

According to the content, which of the following is a potential consequence of corporate social responsibility (CSR) being used as a form of 'reputation laundering'?

It can mask unethical practices and undermine the effectiveness of genuine social initiatives. (C) Signup and view all the answers

What is a key difference between Snowball Impact Management and traditional VCs?

Snowball Impact Management uses a reformed fee structure to prioritize impact and long-term sustainability, whereas traditional VCs prioritize profits and short-term returns. (A) Signup and view all the answers

Which of the following is a key argument from ecological economists like Tim Jackson regarding the limits of economic growth?

Economic growth is not sustainable in the long term and should be decoupled from environmental degradation. (A) Signup and view all the answers

What is a potential benefit of using founder-led companies with non-profit entity forms, such as Steward ownership, in the social enterprise sector?

It minimizes pressure to sell the company for financial gain, enabling the founders to prioritize long-term impact. (A) Signup and view all the answers

Study Notes

Impact incubators and VCs prioritize impact and sustainability over financial returns.
Impact VCs face a conflict: fiduciary responsibility to investors requires generating returns to avoid liability.
Traditional VC fee structures (2 & 20) incentivize growth, possibly harming social impact.
Snowball Impact Management, a fund of funds, reformed fees by eliminating carried interest and basing management fees on middle-class salaries/pensions. Excess returns are recycled into the fund.
Impact VCs often resist fee reforms despite acknowledging their relevance.
Social entrepreneurs frequently face pressure to sell, often citing impact scaling as the primary driver.
Founder-led companies with non-profit structures (e.g., Steward ownership) mitigate the pressure to sell.
Philanthropy can be inefficient due to lack of transparency and democratic process in wealth distribution.
Philanthropy can be used for political influence, solidifying the power of wealthy donors.
Tax-deductible donations to elite causes can drain funds from crucial needs.
Corporate social responsibility (CSR) might mask unsustainable practices with charitable activities.

Post Growth Entrepreneurship

Post-growth rejects continuous economic growth as the primary goal.
The Club of Rome's 1972 "Limits to Growth" report, using the "World3" simulation, predicted consequences of unchecked growth (e.g., resource depletion).
Recent research confirms the accuracy of the "Limits to Growth" model; the real world mirrors the "business as usual" projected trajectory.
The report estimated humanity would reach growth limits by 2072.

Growth: Discussion & Alternatives

The discussion of sustainable growth and planetary limits is longstanding.
Tim Jackson (University of Surrey) explores the limits of economic growth in "Prosperity Without Growth" and "Post Growth."
The Post Growth Institute, founded by Donnie McClurkin and Jennifer Hinton, educates on post-growth concepts ("free money day," "enrich list").
The degrowth movement aims to thrive in a shrinking or slower-growing economy, similar to post-growth but with a specific focus on shrinking economic activity.
Henry David Thoreau's Walden Pond experience represents an early degrowth ethos.
The degrowth movement gained momentum in France in the 1970s with figures like André Gorz, Serge Latouche, and Nicolas Georgescu-Roegen.
E.F. Schumacher's "Small is Beautiful" (1973) questioned the obsession with endless growth and promoted smaller scale economies.
Jason Hickel's "Less is More" discusses degrowth in a modern context, highlighting resource consumption and environmental concerns.
Kate Raworth's "Doughnut Economics" sets a framework for balancing social needs and planetary boundaries.

Post-Growth Entrepreneurship

Post-growth entrepreneurship creates a post-growth economy through individual business practices.
It aims to build "non-extractive businesses" avoiding resource and human exploitation.
Post-growth entrepreneurship emphasizes bootstrapping, flat growth, and non-extractive practices.

Main Elements of Post-Growth Entrepreneurship

The core of post-growth entrepreneurship is "non-extraction," focusing on value creation without profit extraction.
Sustainable bootstrapping supports non-extractive practices.
Instead of pursuing SDGs, the focus is on creating social utility in "boring but necessary" businesses by eliminating profit extraction.
"Ethics by Design," incorporating ethical practices and sustainability from the start, is essential.

Challenges & Examples

Implementing post-growth principles in existing businesses is difficult due to entrenched structures, shareholder expectations, and corporate culture.
Yvonne Chouinard's transformation of Patagonia into a climate foundation exemplifies a successful non-extractive transition.
Continual vigilance and critical analysis are vital for sustaining ethical and non-extractive practices in businesses.

Fair Compensation & Key Stakeholders

Determining fair compensation is complex and context-dependent.
Examples include the "Balkenende norm" (maximum income cap) and pay ratios (CEO-to-lowest-paid employee comparison).
Talent and skill deserve reward independently of location.

Post-Growth Entrepreneurship: Who & Why

Post-growth entrepreneurship is relevant for startup founders, incubation ecosystems, governments, non-profits/NGOs, the creative sector, and even those reluctant to enter entrepreneurship.

Post-Growth Entrepreneurship Incubator

The Post-Growth Entrepreneurship Incubator, operated by "Non-profit Ventures," provides support for startup founders focusing on practical post-growth applications.
Three cohorts (12–15 founders each) have explored applying post-growth principles in real-world contexts.
The first cohort was in-person on Terschelling, combining personal development and startup bootcamp elements for holistic thinking.
Online cohorts (2021, 2022) broadened participation globally.

Monica's Story: Sister Speaks & Heels for Pads

Monica, a social entrepreneur from Nairobi, runs two businesses:
- Sister Speaks (for-profit): women's events and merchandising.
- Heels for Pads (non-profit): promoting menstrual health and hygiene.
Sister Speaks cross-subsidizes Heels for Pads financially.
Heels for Pads uses a "high heel trade" to collect and distribute sanitary products, emphasizing inclusion, gender equality, and female empowerment.
Heels for Pads is working towards tech-driven solutions (e.g., dispensers, games, videos).
Monica emphasizes the importance of business model canvases, impact goals, networking, and knowledge sharing.
The Post-Growth Entrepreneurship Incubator aided Monica in developing an impactful business model and networking.

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Description

Explore the complexities of impact investing and social entrepreneurship in this quiz. It covers the challenges faced by impact VCs, traditional fee structures, and the balance between financial returns and social outcomes. Assess your understanding of how these dynamics affect the growth and sustainability of social enterprises.