The Art of Letting Go: Navigating Succession in Social Entrepreneurship
Inspired by the webinar, Who Are You If Not Your Organisation?, hosted by the Elders Council for Social Entrepreneurs.
While corporate succession often follows well-established procedures, social entrepreneurs face unique challenges that intertwine personal identity, mission-driven work and deep emotional connections to their cause. Discussions among veteran social entrepreneurs highlight how the sector's distinctive characteristics demand a more nuanced approach to leadership transition.The conversation around succession planning in social entrepreneurship, hosted by the Elder’s Council for Social Entrepreneurs, reveals a stark contrast to traditional corporate transitions. Two of the Co-Founders of the Elders Council for Social Entrepreneurs, Mel Young and Andrea Coleman interview two seasoned social entrepreneurs — Jim Fruchterman (Founder and CEO of Tech Matters) and Sheela Patel (Founder and Director of SPARC) — to unpack the complexities of succession in the world of social impact, exploring challenges, emotional investments and strategies for a smooth transition.
The Emotional Foundations of Social Entrepreneurship
Unlike their corporate counterparts, social entrepreneurs rarely enter their field with wealth accumulation in mind. Instead, they are driven by a profound desire for social change, creating an intimate bond between their personal identity and organisational mission. This emotional investment, while powerful in driving impact, can get in the way of progressing.
Mel Young underscored a critical gap in our understanding of transitions for social entrepreneurs. While extensive literature exists on corporate succession, the unique challenges faced by social entrepreneurs remain largely unexplored. This knowledge gap reflects a broader challenge: how do we approach succession and transition when the organisation's identity is so deeply intertwined with its founder's personal journey?
Emotional Connection and Identity
Social entrepreneurs frequently face the challenge of disentangling their identities from their organisations. Jim Fruchterman and Sheela Patel both highlighted this, emphasising the emotional journey that succession entails. Unlike corporate leaders who may view a company as a career stepping-stone, social entrepreneurs often see their organisation as an extension of their personal values and goals. For Jim, a pioneer in tech for social change, this meant grappling with his identity beyond his title and legacy within Tech Matters. He shared that the unique emotional bond founders share with their organisation can complicate succession planning, as they aren't just handing over responsibilities but also entrusting someone with their vision for social impact.
Similarly, Sheela described her journey from an accidental entry into welfare work to becoming a committed activist against urban poverty. Her work grew out of her connection to the marginalised communities she advocated for. Sheela said it is about ‘Protecting the identities that you have created.’ Stepping back from leadership is not easy, it means entrusting others with her deeply held mission to represent the underserved.
The Structural Challenges of Succession for Social Entrepreneurs
Corporate businesses often structure their operations to enable seamless transitions, supported by comprehensive resources that social organisations generally lack. Jim shared that ‘my job turned into three jobs’ requiring a diversion of funding to support this structural shift. Jim’s role was eventually divided into multiple roles, acknowledging that his skill set and insights were best carried forward by multiple individuals rather than a single successor. In doing so, he reallocated his responsibilities to focus on field-building and allowed his successor to step into a role that carried less operational baggage. This change required thoughtful financial planning, something many organisations struggle with due to limited funding options.
Sheela, meanwhile, noted that her organisation does not operate under the traditional hierarchy seen in corporations. Instead, SPARC relies on a collective approach, where the emphasis is placed on community-building and collaboration. Jim and Sheela’s experiences highlight the structural and funding adjustments necessary to create a succession pathway that respects the diverse workload required as well as the collaborative spirit and community focus inherent in many social impact organisations.
The Challenge of Finding and Preparing Successors
One of the most significant succession challenges in the social sector is finding qualified leaders who share the same dedication to the mission. Jim and Sheela both noted that traditional executive search processes may be ineffective in this field.
Sheela explained that headhunting rarely works well, particularly in contexts like Asia and Africa, where SPARC operates:
‘[the] head hunting thing has not generally worked very well in our sector because most of the headhunting organisations specialise in bringing people in for corporate, you know, professional businesses and their knowledge and their understanding of what is needed for this sector, at least for the kind of movement building organisations, is very difficult.’ Sheela Patel?
The uniqueness of social enterprises means successors are often cultivated within the organisation or drawn from the communities they serve.
For Jim, succession planning meant actively stepping back from public-facing activities, such as speaking engagements, to allow his successor to develop their voice. Over two years, he gradually reduced his visibility, redirecting his efforts to supporting the organisation from the background, allowing his successor to take over. This also allowed his successor to grow into the role organically, making the transition smoother.
Jim noted “the identity crisis’’ that can happen - ‘I wasn’t sure I would be able to get any money or continue to work after I stepped down from Benetech but it was kind of reassuring that funders still wanted to talk to me and now my new social enterprise has raised about $3 million.’ Highlighting that even though it is challenging to step down, bigger and better things can happen when you do.
Generational Transitions and the Role of the Founder
One of the broader challenges discussed was the need to plan for generational transition which can bring a shift in priorities and perspectives - potentially a strength and a challenge within organisations. Jim raised the question of ‘how do we encourage the next generation to take on responsibilities and see what their potential is so the to to be able to do that inside an organisation at least in our organisation took money.’ Leaders like Jim and Sheela, who shaped their organisations based on personal principles, have to grapple with the fact that younger leaders may bring new ideas and approaches. Jim’s role was eventually divided into multiple roles, acknowledging that his skill set and insights were best carried forward by multiple individuals rather than a single successor.
This approach underscores a crucial insight from the discussion: successful transitions often involve reimagining leadership rather than simply replacing it. Many social entrepreneurs move to a more advisory role when they transition to give space for the successor to take over. In Sheela’s view, there’s an inherent pressure for social organisations to mimic corporate models, but doing so often overlooks the unique needs of mission-driven work. Both Jim and Sheela exemplified how founders can play an advisory role, guiding new leaders without overshadowing them, which allows the organisation to evolve.
Preparing for a Future Beyond the Founder
As Andrea summarised, social entrepreneurship is not a linear journey, nor is it easily replicated by conventional business practices. Each organisation has its own rhythm, mission, and structure, making succession a deeply personal and variable process. To navigate these nuances, social entrepreneurs often need to create a roadmap that includes financial planning, role restructuring and community involvement. Jim and Sheela’s experiences underscore the importance of founders finding a new purpose or role after succession, one that keeps them engaged in their mission without obstructing the growth of their successors.
For some founders, moving on is not about retirement but about contributing to their field in a new way. Whether it’s Jim’s work in tech for child welfare or Sheela’s continued advocacy for urban poverty issues, both founders showed their need for ongoing involvement in social causes. This involvement does not undermine succession but rather enriches the social sector, providing continuity and expertise that can benefit new leaders as well as securing sustainable impact.
Embracing Change
Succession and transition planning is a complex, multi-layered process. It involves not only the founder and their successor but also the community they serve and the values they champion. The discussion highlighted the need for financial planning and organisational structures that support leadership transition, structural adaptability and a compassionate approach to identity and legacy. It also raised the need for sector-specific succession models that acknowledge the unique emotional and mission-driven nature of social entrepreneurship. The speakers suggested that by preparing successors from within the organisation or local community, social entrepreneurs can foster a continuity that honours the organisation’s roots while embracing new perspectives.
The process is neither quick nor easy. Jim, Sheela, and Andrea’s insights suggest that a gradual handover, supported by a clear vision for the future, can make succession smoother and more successful. This approach doesn’t merely secure the organisation’s future but also could deepen its capacity for meaningful social change.