Cynthia was one of the leading sales agents at a large furniture retailer and had also started a small business selling scented candles. She had started this business as a way to supplement her income and had seen sales grow slowly but steadily over the first year of operations. Akiel worked as a loans officer in a credit union and was responsible for evaluating the business proposals of entrepreneurs who visited the institution seeking funds to finance their business. This exposure had led him to open a small agricultural shop at the front of his home and he also offered consulting services to small business owners in the area where he lived. The pair had bonded after sharing their experiences as entrepreneurs and their passion to see those businesses give back to their respective communities.

The Business Model

The idea of a socially responsible for-profit business is one which had long been popularized in North America but had gained limited support in the local market. Retailers who engaged in this business practice often spoke about joining a movement for social good and reported that consumers were willing to pay higher prices for their products if they knew the brand was associated with a worthy cause. Individuals from higher socio-economic groups were more likely to purchase an ethical product but many consumers were excited by opportunities to give back through their consumption. Critics of the model argued that such programs were designed to ease the guilt of privileged consumers rather than addressing the root causes of societal problems. They therefore questioned the sustainability of such business practices. Cynthia and Akiel wanted to adopt this model for their business but felt that rather than simply donating money to a charity they should encourage recipients to become entrepreneurs themselves. Providing the charity with products that they could sell would provide a more sustainable source of income and assist in making them more financially independent. Akiel was also willing to provide free financial advice to the charities to "teach them how to fish rather than simply giving them a fish".

Question- What are the opportunities and threats confronting the business? (at least 300 words)