How to spark change by pursuing policy entrepreneurship

The rise of Certified B Corporations and purpose-driven businesses is reshaping our economy. The entrepreneurs spearheading these initiatives are not just chasing profits, they're also committed to creating inclusive, sustainable and regenerative business models. Yet, their key challenge often lies in advocating for policies that support their mission. How can they influence the policy landscape to ensure businesses drive positive impact? By mastering the art of policy entrepreneurship, they can turn talk into action.

Many businesses positively impact society by donating to charities, implementing employee engagement programmes or granting time off for civic duties. More and more companies are appointing chief impact officers, or similar, to oversee these collective efforts.

Despite these positive strides advocating for systemic policy change is often overlooked in today's polarised world. After all, taking a stand on a particular policy issue can carry significant risks. Concerns about becoming entangled in cultural wars persist despite the 2024 Edelman Trust Barometer revealing that businesses are now more trusted than nonprofits and are in a strong position to champion collective solutions to our shared challenges.

Pushing for policy change

For impact-minded entrepreneurs, however, advocating for policy change isn't a choice; it’s a critical necessity. They need the right policy frameworks to create an enabling environment in which their businesses can thrive while simultaneously tackling the biggest challenges of our time. Some argue that their business models are unviable and they suggest changing track if their flourishing relies on policy change. However, this is a narrow view that not only gives less conscientious competitors an edge but also encourages practices like greenwashing, harming global progress in the long run. Such a stance should concern us all and underlines the urgency and importance of policy change.

Consider entrepreneurs aiming to scale carbon removal technologies or natural climate solutions that prevent illegal deforestation using voluntary carbon credits. Without clear standards and regulations, opportunistic ‘carbon cowboys’ can flood the market with cheap, low-quality credits, undercutting legitimate efforts. This damages the industry's reputation on exposure and jeopardises our planet's future by hindering the deployment of crucial carbon removal solutions.

That's why companies increasingly team up with policy think tanks, as in the case of Carbon Direct and the Bipartisan Policy Centre. Together, these two partners push for government actions that protect buyers from fake or low-quality credits and encourage suppliers to deliver high-quality carbon credits that meet rigorous standards. Their goal is a transparent and effective carbon credit market that makes a tangible environmental impact. As their joint report emphasises, their efforts aim to accelerate private investment towards emission reductions and greenhouse gas removal, preventing fraud and wasting money on poor climate solutions.

Claiming that purpose-driven entrepreneurs should stick to their lanes also ignores that companies with negative impacts actively work to block policy changes that might level the playing field. Just look at the unprecedented number of fossil fuel lobbyists reportedly swarming the halls at last year's UN climate talks in Dubai. We often overlook that policymaking involves influential figures prowling the corridors of power, many of whom simply wish to maintain the status quo.

The policy entrepreneur

The good news is that thanks to advancements in communication, funding accessibility, technology and science, today's entrepreneurs – representing small startups, especially those from marginalised communities and established corporations alike – have unprecedented opportunities to influence policy for good. My work has been to study these ‘policy entrepreneurs’, a concept coined by political scientist John Kingdon. They are more than mere ‘lobbyists for good’; they are visionaries, diplomats and implementers who use unconventional methods to shape legislation and government budgets positively.

For those looking to navigate and impact the policy process, I’ve distilled the approaches and strategies of policy entrepreneurs into the following eight tools:

Know your policy goal: Policy entrepreneurs excel at setting SMART (specific, measurable, achievable, relevant and time-bound) goals. This precision ensures advocacy efforts don't just diagnose problems but also offer actionable solutions.

Know which stakeholders matter and how to influence them: Accessing government leaders directly can be challenging, so building relationships with influential figures in their networks is crucial. Establishing credibility with your audience and selecting credible messengers are equally vital.

Mastering the art of timing: Understanding the range of acceptable policies at any given time, known as the ‘Overton window’ is key. This concept also helps track the influence of evolving social norms or crisis responses.

Mastering the art of storytelling: Emphasise the ‘why’ to build trust and provide practical solutions (the ‘how’). Even if narratives face disagreement, they refine ideas and foster constructive dialogue.

Embrace pragmatic idealism: Effective policy entrepreneurs defy the pressure to subject everything they do – from the people they engage with to the policies they support – to being judged through the prism of strict moral codes applied by their ‘tribe’, known as ‘purity tests’.

Leveraging your partners’ strengths: Identify leverage points, align capabilities and collaborate with like-minded organisations to maximise strengths and minimise weaknesses.

Know your endgame: Challenges, such as complacency, changes in organisational leadership and fresh crises, can all disrupt follow-through. To overcome these hurdles, a clear endgame strategy and tenacity are essential.

Communicate stories of success: Highlighting achievements and crediting partners fosters loyalty and empowers stakeholders. Sharing lessons learned provides a blueprint for others to implement similar solutions locally.

AMBA & BGA members can benefit from a 20% discount off the RRP for From Ideas to Impact, courtesy of the Book Club. Click here for details.