PayPal Stories Archive

 

It’s no coincidence that companies like Toms and Warby Parker – known for their innovative “buy one, give one” business models that have been widely recognized for creating value both commercially and socially – found mass appeal just as the millennial generation joined the consumer class ranks. 

 

Though they may sometimes be stereotyped as selfish and entitled, research shows that millennials are inclined to respond to purpose-driven business models – from both sides of the shopping cart. This aspirational, digitally-native generation is wielding both their purchasing power (spending an estimated $600 billion each year in the US alone) and entrepreneurial acumen to build a better world.

 

 

The most recent Millennial Impact Report found that millennials are careful about making purchases, choosing one company over another if one gives back more. When choosing to make a purchase online, nine-in-10 millennials would switch brands to one associated with a cause, citing social responsibility as an indicator (83 percent) of trust in the company.

 

They aren’t content to stop there—millennials also want proof that companies are in fact making a difference with the money that has been contributed by purchasers, with “Facebook remaining the most impactful social medium for influencing people in the areas of CSR and philanthropy.” Unlike previous generations, millennial interests go beyond specific causes. They are interested in the world on a broad scale, and expect companies to support global, social issues, like hunger, deforestation and access to clean water.

 

 

So, what can small businesses do to entice these millennial consumers and stand out from the crowd? Who better to learn from than entrepreneurs who are also millennials themselves? Learn from the pros – these merchants found success by making “giving back” a key part of their business:

 

For Dave Luba, 26, and Kalen Emsley, 27, spending time outdoors was part of their everyday lives. “It wasn’t until we were at an exchange program with the University of Hawaii, where we saw the devastation deforestation can have on the environment and we realized that we wanted to do something to protect it.” That led the two to launch Tentree, an apparel brand that plants 10 trees for each item purchased. The team has had a huge impact, planting over 2.5 million trees last year, and expecting to grow another 20% in 2016.

 

It was a different story for Jeff Malkoon, 29, founder of PB Americano, a nut butter company based in Arizona. Jeff was volunteering abroad when he discovered his calling: making and selling specialty nut butters from his mom’s kitchen. After seeing the people of Uruguay struggle to find accessible, nutritious foods for their children, he became inspired. Now, a portion of any purchase made at PB Americano donates cash money to “The Funds for the Americas,” which then sends those donations to other charities, similar to one he worked for in Uruguay. Jeff now sells at 30 retail locations in Arizona and ships internationally.

 

Social media led small business, The Smart Baker,to team up with a cause important to their business. Daniel Rensing, 30, recalls a recent situation, the “Elsa cake disaster,” a socially viral story around a botched cake that was never delivered to the sick child for which it was intended. Upon learning this story, The Smart Baker, decided to partner with Icing Smiles, a non-profit organization providing custom celebration cakes for families caring for ill children, and eventually leading them to become a corporate sponsor, providing a portion of all sales to the organization.

 

Each of these merchants’ stories is different, but they share a common generational trait: they’re purpose-driven and cause-oriented, and firmly believe that doing business and doing good don’t have to be mutually exclusive. It’s no surprise that each of these business’ core customer bases are comprised of their millennial peers.

 

It goes to show that no matter what side of the shopping cart they’re on, millennials are changing the world – the rest of us just need to catch up!