Impact in a Time of Crisis

Finance Minister Grant Robertson announcing the Government’s Covid-19 Economic Response Package in Parliament on March 17 2020. IMAGE: Parliament TV.

Ākina CEO Louise Aitken takes a look at what the Covid-19 outbreak and the Government economic stimulus package means for impact enterprises* during the anticipated economic downturn.

Running a social, community or impact enterprise can be challenging at the best of times, let alone during a time of economic turbulence created by a global pandemic! Although things may seem bleak, impact enterprises already have many of the solutions needed to help us all weather the storm. In fact, in a time of crisis, social and environmental impact is a more important foundation for our economy than ever before.

Impact enterprises, like many businesses in New Zealand, will be negatively impacted by this crisis. That’s going to create a lot of anxiety – which can make wading through all the information swirling around really challenging. So, first-up, I want to offer some really specific advice for any impact enterprises concerned about what an economic slowdown might mean for them.

Seek help, if you need it

Broadly speaking, the $12.1 billion economic stimulus package announced by the Government is significant. There’s a good overview on the Beehive website, including a few fact sheets to help you navigate what support will be available.

There are wage subsidies and self-isolation leave subsidies available for business that may struggle in the coming weeks and months. Find out more and apply via the Ministry of Social Development; there’s a hotline you can call, and a handy menu summarising the key info too. There’s also some changes in provisional tax and tax returns that may help in the coming months. The wage subsidies alone are worth $5 billion – this is a solid shot in the arm for the economy, and whilst it won’t solve all the upcoming challenges, it’s certainly a big help.

This is also likely to be a tough time on business owners and employees when it comes to mental health. If you’re one of the small businesses in New Zealand using Xero, the Xero Assistance Programme could offer some mental health and wellbeing support. There’s also a whole host of resources on the Mental Health foundation website. Be kind to yourself, and each other. It’s going to be a rough ride, but help is out there!

Look out for your staff and customers: share the love, not the germs

Lots of workplaces will already have sent out emails, posted on social media and put up posters to let people know what action they can take to stay healthy. Wash your hands and keep it up!

This situation is ever-evolving, but if you don’t have time to keep refreshing the news - keep an eye on the latest information from the Ministry of Health instead.

If you haven’t already, consider making a specific Covid-19 policy that lets your team know what you’re putting in place to help keep them healthy. There may be some rules around travel or working from home that you need to put in place. For businesses with staff who can’t work from home, see the info about wage and leave subsidies above.

At Ākina, we’ve had a Covid-19 policy in place since early March. If it’s helpful to you, you can view it here. We’re reviewing it regularly as the situation changes, and we’ll keep this version up to date.

Your impact is your not-so-secret weapon

Whilst impact enterprises are business, they're not just business as usual.  Your positive social, cultural and environmental impact remains a competitive advantage, one that is arguably even stronger in times of crisis.

Now is the perfect time to start talking even more about the impact you exist to create. Remind your customers, shareholders and other stakeholders why they cared about you to begin with, and ask them to help spread the word about the important work you are doing. In tough times, people will be more inclined to lend a hand - so don’t be afraid to ask for help.

To do a good job at telling the story of your impact, you might need to take a moment to have a deep dive into what your impact model looks like. Reaffirm the positive outcomes you’re creating and the activity that gets you there. We’ve compiled some resources over on the Impact Initiative website that might help you with this.

Once you’ve got your impact story down, you may want to step up your marketing activity. Email campaigns and social media can still be pretty cost effective if you’re on a tight budget – but personal referrals and word of mouth are even better.  Remember, you’re already hardwired for good, you just need to make sure that your customers know this!

Tap into procurement: let’s protect local by buying local

Impact enterprises often offer local solutions to local needs. They tend to exist within a specific community, and respond to the needs of that community. As global supply chains face disruption and as individuals and businesses look out for their community, the ‘support local, buy local’ mentality is set to get a boost.

Messages around why it’s important to support local businesses will have much more cut-through during this time, as consumers and businesses remember that their buying choices can have a direct effect on their communities. As we move into a time of heightened awareness about looking out for one another, impact enterprise could come into its own. Chances are that the kaupapa at the heart of your enterprise is already about looking after people and our environment. Now is a good time to be getting ready for social procurement.

We have prepared an intro to social procurement and a social procurement checklist that could help you work out how ready you are. For enterprises ready to take the next step, there’s also our Fwd social procurement programme. The Fwd certification process offers an opportunity to prove your impact, and open your enterprise up to creating connections with some large buying organisations.

Your size could be an advantage. If you need to, pivot!

Social enterprise founders often build their businesses out of personal passion to solve a social or environmental problem, and a community or environmental need.

If you created your enterprise you may be able to change what you’re doing, or how you do it,  if you feel you need to. Larger organisations are often much less agile to respond to swift changes, so lean into your ability to be nimble. Can you quickly create a new product or service? Can you reach out to potential new partners? How can you tap into a new marketplace?

You are needed now, more than ever!

We know that impact enterprises are often focused on creating solutions for those most at risk of shocks in our economy and our communities. They employ those that find it the hardest to gain meaningful employment, or they work in areas that make things better for at-risk communities; whether that’s support for people with disabilities, wellbeing outcomes for whānau, or support for people with mental health needs.

At Ākina, the message we will be spreading with our clients, partners and with Government is that it’s more important than ever to be supporting impact enterprises and unlocking the delivery of impact across the economy.

Ultimately, at the heart of our communities and our businesses are people. We are all in this together, and together we will get through this crisis. Look out for yourself, your whānau, your community and your business. Positive social and environmental impact matters more than ever before. We need and deserve an economy that values people and our planet. There are tough times in our near future, but there are also opportunities to keep creating an economy that is built on kindness, inclusivity and prosperity for all.

He waka eke noa - we are all in this together.

Louise Aitken,
Ākina CEO

*We’ve used the term ‘impact enterprise’ in this article to refer to social enterprises, community enterprises and Pakihi Whai Kauapa (Māori businesses that follow purpose) This term takes a slightly wider view by recognising that businesses that don’t use the term ‘social enterprise’ may still exist to deliver positive impact.