For every story of social enterprise success, there is at least one story of social enterprise failure. Indeed, if the same pattern that applies to new businesses in general applies to new social businesses, then there are multiple social enterprises that fold for every one that flourishes. For the most part, it is the tales of success that people choose to tell. Entrepreneurs who do well are more willing to discuss their experiences than those who don’t. What’s more, their stories provide other entrepreneurs with a source of both insight and inspiration. But “Cause for Reflection” (by Michael Cobb, Caitlin Rosser, and Andreas Vailakis, with Robert Tomasko), a Case Study article published in the Spring 2015 issue of SSIR, shows that even a venture that ends up shutting down can leave behind a set of revealing lessons.
To supplement the article, we offer several items that add texture and a sense of context to story of Cause. This material appears here in its original form and with the permission of those who created it.
Cause was a so-called philanthropub that opened in Washington, D.C., in 2012. It closed 14 months later. The founders of Cause, Nick Vilelle and Raj Ratwani, launched their venture with high aspirations and with one simple idea: They would give charitably inclined but busy Washingtonians a chance to do some good while dining and drinking well. In the early, hope-filled days of that venture, they talked about their vision for the establishment in a short video clip. We share that clip here with the permission of Neal Piper, the videographer who produced it.
Nick and Raj Are Changing Philanthropy, One Beer at a Time
“People are really excited about the fact that they can drink a beer and have it help somebody out … help make the world a better place.”—from the video narration
The rise and fall of Cause unfolded over several years, and its history was punctuated by a handful of pivotal events. To explore that history, the co-authors of “Cause for Reflection” applied the same kind of rigor as they would apply to the study of a more successful social enterprise. As part of their research, they carefully charted the saga of Cause from its origins as a gleam in its founders’ eyes to its ultimate closure.
Cause: A Timeline
Here, with their permission, we reproduce a visual chronology that co-author Andreas Vailakis developed for the project.
Transparency was among the values that animated the founding of Cause, and in that spirit its leaders publicly disclosed information on how the restaurant was faring financially. In the article, the co-authors use some of that information—including a document that sets forth data on the first-quarter financial results of Cause—to point out problems with the business that emerged early in its history. That document appears immediately below.
Cause: First Quarter Financial Snapshot
We share the document with the permission of Nick Vilelle.
Read more stories by SSIR Editors.