Businesses are often born from a mission to address systemic problems and drive sustainable change. Grants, with their ability to provide necessary funds, seem like a perfect solution for supporting these missions. But, over time, many businesses find themselves chasing grants at the expense of their original mission, becoming what some call “grantpreneurs.” But, this pursuit of grants can often lead businesses astray.
Grants were designed to fill financial gaps in the social sector, but a dependency on them can distort business models. Instead of developing sustainable revenue streams or focusing on high-impact solutions, many social businesses find themselves trapped into strategies to attract grants! A social enterprise focused on youth education might spend more time writing grant proposals and less time working directly with students. In the quest for funds, they gradually shift from creating direct educational impact to tailoring programs to funders’ expectations.
To meet grant requirements, organizations often end up embellishing impact stories or designing projects that align more with the grant criteria than community needs. Entrepreneurs find themselves crafting narratives that play to funders’ preferences, sometimes tweaking metrics or stretching the truth to appear more impactful. This “gaming the system” creates organizations that look good on paper but are less effective on the ground, contributing to stagnation rather than growth. This creates a lose-lose-lose cycle, where the businesses derail their mission, and the funding provider is no longer able to make real impact in the ecosystem.
If businesses are to thrive, they must prioritize mission alignment over grant attractiveness. A healthier approach would involve viewing a grants as a temporary boost, rather than a permanent source of revenue. Businesses can create accountability measures to ensure that they focus on impact metrics relevant to their core mission rather than funder preferences. By maintaining a commitment to sustainable revenue generation, they can reduce grant dependence and preserve mission integrity.
In the end, businesses must choose between being “grantpreneurs” or mission-driven organizations. By focusing on sustainable impact over temporary funding, they can ensure their work genuinely benefits the communities they serve. For those committed to meaningful change, money should be the means, not the goal.
"Money pushes the mission, but there is often a conflict of interest between staying on the mission and attracting money. A great “grantpreneur” is the one who finds the balance." Oluwapelumi Samuel
