While the most important thing for most businesses is the bottom line, some also want to make a difference in their communities.
It’s becoming more common for Ukrainian companies to earmark a share of their profits to invest in solving local social problems. The Kyiv Post looked at three examples.
Urban Space
This business idea came to Ukraine’s capital from Ivano-Frankivsk, a city 500 kilometers southwest of Kyiv. There, in December 2014, 100 people chipped in $1,000 each and opened a restaurant that would serve up to the city not just food, but other benefits. Up to 80 percent of Urban Space’s profit has been invested in social projects like building inclusive children playgrounds, launching the independent radio station Urban Space Radio, and more.
The restaurant’s founders then decided to extend their social impact, and to open a similar venue, Urban Space 500, in Kyiv. In contrast to the business in Ivano-Frankivsk, the number of investors needed to open the restaurant is 500. Alona Karavai is one of 363 people who’ve already invested $1,000.
“I have to confess: the main value of this project for me is the people,” Karavai told the Kyiv Post. “The community that is gathered by Urban Space is unique, because these are people of different ages and professions united by one fundamental value – responsibility for yourself and your environment, being proactive.”
Investors decide which social initiatives are to be financed, and do not get any profit from Urban Space themselves.
“The social profit you get from this project is worth far more than the money you invested,” Karavai said.
Karavai believes that the secret of Urban Space is that investors are not put off by hard work and bureaucracy.
“Moreover, I am sure that social businesses are the only kind of business that has a future, because very soon all businesses will have to be responsible and socially oriented,” she said. “At the same time, non-profit organizations and sponsor-funded cultural organization should think about running some aspects of their work as a business, or monetize some aspects of their work. The future is with hybridized projects, ‘pure’ businesses are no longer effective.”
To become a part of Urban Space in Kyiv, fill out an application form at www.urbanspace500.com.ua/en, obtain five recommendations from the current members, and make a $1,000 contribution.
Alona Karavai is one of 363 people who’ve already invested $1,000 into Urban Space 500. (Photo by Courtesy)
Laska
This Kyiv store accepts donations of second-hand clothes, shoes, accessories, books and other objects from the public, selling those things that are in good condition, and donating the ones that can’t be sold to people in need. Sixty percent of the income earned from sales goes to charity.
“We involve average citizens to help other people in a rather easy way – all you need to do is to buy or to donate clothes, shoes or books,” says Anna Uvarova, the co-founder of the Laska charity-shop.
Apart from being a store, Laska also sells coffee, tea and snacks.
Since Laska was opened in 2013, the situation in the social business has significantly changed, says Uvarova.
“At that time we didn’t even know we were a social business,” Uvarova says. “Now this concept is not just well known among Ukrainians, it’s even taught in the most innovative educational programs. We’ve noticed that there’s demand for this kind of business, which can solve some social problems and gives additional meaning to the business itself. It becomes very important for people.”
According to Laska’s website, it has funded “Tabletochki,” the Ukrainian charity fund that helps children with leukemia, “Happy Paw,” which helps stray dogs, “Zhyznelub,” a charity fund that helps the elderly, and many others. In total Laska, has raised almost Hr 700,000 ($25,000) for charity. It has also invested Hr 181,204 ($6,470) in its own projects, which are mostly aimed at helping young people. For example, Laska’s “Five Steps to an Independent Life” project helps young people raised in orphanages.
To donate or buy clothes, visit one of Laska’s stores in Kyiv: 3 Lypynskoho St. or 15 Malopodvalnaya St., open from 10 a.m. until 9 p.m.
Charity store Laska on 15 Malopodvalna St. is one of the few places where Kyivans can donate clothes. (Photo by Courtesy)
Walnut House
The Lviv-based Walnut House was founded in 2010 as a care center for women in crisis, and was funded by grant money. But after two years the organization, which helped mostly homeless women, ran out of grant money, so Yuriy Lopatynsky, Walnut House’s founder, decided to open a bakery to raise money for the center.
“The women baked cookies, and the first clients were Lviv restaurants and cafes,” Lopatynsky said. “The women’s center was saved. Some people didn’t understand the social aspect of Walnut House, because they thought our aim was to buy cheap cookies and then sell them for a higher price. That’s not true – we make them ourselves using only organic ingredients.”
However, in 2016, the profitable bakery had to be put on pause. Walnut House lost its premises, as the owners decided to sell the building that the organization was using for free. Lopatynsky then launched a fundraising campaign to buy a building for the women’s center and the bakery, raising Hr 261,982 ($9,350) and getting another Hr 1 million ($35,700) from a non-governmental organization Pomogator, which helps to promote social initiatives. Walnut House has already found a building and is preparing to buy it.
“We have the idea of making this center not just a place where women can find a shelter in a crisis situation, but to convert it into a fully self-funded project,” Lopatynsky told the Kyiv Post. “There will be a canteen and a bakery where the women can work. This is thought of as professional integration, the aim of which is to speed up the overcoming of a crisis. In the meantime, we’re planning to open a temporary center for women, because every week we receive requests from women who need help.”
Find out more about Walnut House at www.walnut.house/en/
Olha Karyeva, a former resident of Walnut House, stands next to the future center for women in crisis, set to open on 90 Lychakivska St. (Photo by Courtesy)
