In today’s post we unravel how entrepreneurs benefit society through creation of new market niches for products as they meet people’s unmet needs as well as the impact of philanthropy on society. As new business people get into newfound welath they empower others through charitable works and deeds. They take care of the poor. Read on.
4. Creation of New Market Niches
Banks like NMB and Trust Bank took service provision to new heights as they sought to create personalised high net worth market niches. These banks completely revolutionised banking for the benefit of society. The traditional banks had not segmented the individual market – but this was done successfully by entrepreneurial bankers. NMB and Trust used this as an entry route into commercial banking, thus avoiding head-on confrontation with the traditional big three. When large corporations ignore legitimate needs of the community as not worth their effort, entrepreneurs can and will create niche markets to meet these needs.
Many of the entrepreneurial banks took philanthropy and reinvesting into the community to greater heights as corporate responsibility moved into centre stage of marketing campaigns. ReNaissance Merchant Bank created Munotidaishe Trust which currently funds tuition fees for orphans as well as empowering widows through provision of financial resources to start home-based businesses. ReNaissance includes its philanthropic donations into its main budget, as a business expense that is factored into its pricing model. An example of Zimbabwean entrepreneur aggressively engaged in philanthropy is Capernaum Trust, which was established by Strive Masiiwa of Econet. Entrepreneurial bankers deliberately and competitively engaged in causes such as scholarships/bursaries and career attachments to university students, contributions to the National Aids Council, as well as funding various charitable concerns and in sponsoring cultural and sporting events. Bankers also competed in raising funds in times of national disasters e.g. in the aftermath of Cyclone Eline in 2000-2001, most banks raised significant financial resources to assist the State in the relief efforts. Entrepreneurs engage in philanthropic ventures that supplement and complement the public purse, for the benefit of the community.