In this video, Matthew Bishop, Senior Editor, The Economist, and Author, “Philanthrocapitalism: How Giving Can Save The World”, says that to make philanthropic initiatives impactful, it is important to overcome fear of failure and the risk-averse attitude, to embrace a more entrepreneurial approach to giving.
Philanthropy is a powerful tool for social good because “it is playing a role in how society addresses big challenges that no other entity is capable of playing”, he says. But, according to Matthew Bishop, it is not playing up to its potential. For him, philanthropists are highly risk-averse and stuck to old ways of thinking.
“If philanthropic money were to be used more like venture capital money, it would have a potential to be a game changer,” he says. Philanthropists, Matthew Bishop insists, are free to think out of the box in ways that governments and businesses are not capable of doing. Governments are bound to elections and voters, and businesses tend to put their shareholders’ priorities first.
It’s time to try high-risk, high-yield projects in ways that others cannot. Mr. Bishop believes that if charities had more of an entrepreneurial and philanthropreneurial spirit, they could combine their intentions for social good with concrete actions to achieve measurable results for beneficiaries.
Matthew Bishop was a speaker at the 2015 Philanthropreneurship Forum in Versailles, France.