Venture Concept No. 1

Opportunity

The American middle class has been the symbol of the American work ethic and prosperity for more than a hundred years.  However, over the last few decades, the middle class has been shrinking or losing ground according to Pew Research.  Their share of income and wealth has been shrinking along with the reality behind the American dream that hard work and meritocracy can propel anyone towards wealth and financial freedom.  The reality is that the system has been rigged to the benefit of the ultra rich since the 1970s and and the recent financial crisis left the middle class incrementally worse off than any other segment of society.  The failure of the financial industry evidenced by the creation of the real estate bubble deprived the middle class of their greatest source of wealth, their homes.

This reality has spawed contemporary movements such as Occupy Wall Street and Black Lives Matter that are making waves throughout society.  The 2016 presidential election campaign has brought all of this to the surface as the voices of anger and frustration against the establishment - the status quo - have been voiced by Donald Trump on the right and Bernie Sanders on the left.  Both candidates have enjoyed unexpected and, in many ways, unprecedented success proving that discontent with government and big business is rampant throughout society.  In essence, the middle class wants change and they appear to want it now!  Perhaps the time for change has arrived or more likely the Trump-Sanders rhetoric is a harbinger of a truly disruptive social change tsunami that is beginning to form.  Irrespective, what is not in dispute is the reality that the current growing income and wealth inequality societal chasm is not sustainable.  It is also clear that social, political, and economic injustice is tearing at the fabric of our great nation.  Therefore, change is not just likely, it is necessary and now appears to be imminent!

Innovation

Our society is built on the foundation of capitalism, the economic engine that permeates our social, economic, and political lives.  There is no facet of society that is not influenced by and controlled by the capitalist ethic of profit at any cost.  Therefore, social justice innovation must address the root problems associated with capitalism.  We must understand that the ends do not justify the means.  The quest for profit cannot travel the path of greed, exploitation, and irresponsibility.

We already know this.  Otherwise, our social, economic, and political systems would be based on anarchy or the law of the jungle where survival is achieved by the fittest.  We have always regulated our economy, our businesses, and other social interactions but as capitalism has become more pervasive, the balance of societal power and authority has greatly tipped towards it and the ultra rich who control the means of production.

Recent history has shown us that government, business, and other leaders are not able to or are not willing to protect the middle, working, and poor classes of society.  It is time for the middle and working class to take control of its own destiny and demand the change that will restore a balance to societal power and authority so that everyone can benefit and prosper together.

Venture Concept

I envision SORIN (the SOcially Responsible INitiative) to begin addressing the aforementioned issues inherent in capitalsm by fostering an alternative socially responsible platform for financial services that aims to balance the need for profit with the societal value of fairness and the collective obligation for social justice.  SORIN will accomplish this through three fundamental initiatives.  The short to mid-term goals of these initiatives are as follows:

• Awareness:  The first step is to engage in a transparent and honest dialogue so that, together, we can develop a consensus about what constitutes social responsibility within financial services.  SORIN will mediate this dialogue by highlighting important considerations and developing a mission statement around the achieved consensus.
• Gap Fund:  No matter how carefully we plan it, there will always remain some gaps in financial services even if built on agreed upon socially responsible principles.  For example, insurance policies will continue to have exclusions, credit considerations will leave some people unable to secure financing, and economic slowdowns will leave people with limited or no short term income to take care of their financial responsibilities.  The SORIN Gap Fund will be set up to assist people who find themselves stuck in a financial predicament through no fault of their own.  Ideally, interest free loans will be the primary form of assistance because proud working people are not looking for a handout.  SORIN will transparently seek feedback in setting up the GAP Fund including, who should qualify, what are the assistance criteria, how should risk be mitigated, etc.  However, it is vitally important to realize that the main purpose of the Gap Fund is to assist those in times of need so it must be set up with the goal of being sustainable NOT profitable.
• Products and Services:  Practical models for mortgages, investment funds, business financing, insurance, and other financial products and services already exist.  I have personally worked to proof of concept some of these.  Building on this work, SORIN will look to develop socially responsible financial products and services based on its mission.  The distribution of these solutions will be the responsibility of for-profit partners that are committed to the tenets of the SORIN mission.  These businesses will contribute to SORIN and its Gap Fund as a return for accessing a branded socially responsible financial services platform, an energized customer base with a pent up demand, and the credibility and advocacy SORIN will provide.  Through this hybrid ecosystem, SORIN will realize a sustainable revenue stream to fund operations and awareness programs along with research and development initiatives.  Think of it as a professional sports league where SORIN is like the league and its partners are like the teams participating in the league.

Final Points

SORIN will be successful because people, like myself, who truly belief in its cause will be working to achieve it.  A movement such as SORIN is fueled by passion and sincere effort.  My aim will be to foster a culture of passion and sincerity.

I envision that all of SORIN's three primary initiatives will be fully functional within three to five years.  My personal ambition is to earn a PhD in Economic Sociology so that I will be able to fully translate the SORIN mission to the masses and advocate its viability within the academic and other societal centers of influence.  Change will come when the middle class demands it; when a viable alternative solution is made available; and when society's intellectuals advocate for the greater good that SORIN will look to foster.