Scaling for Good: Neighbourly's Journey Through Growth and Community Impact As the social enterprise expands, its commitment to transparency and local engagement reveals the evolving landscape of Corporate Social Responsibility.

Neighbourly, a tech platform rooted in Bristol that connects businesses with local good causes, has learned firsthand that rapid growth is anything but straightforward, often coming with twists, turns, and surprises along the way. By focusing on transparency and fostering a culture of trust, the company is not only redefining its value proposition but also positioning itself as a vital player in the future of responsible business, where local impact drives corporate strategy and employee engagement.

Entrepreneur UK talks to CEO Steve Butterworth to find out more.

Neighbourly has grown rapidly - what surprising insights have emerged as you've scaled?
Growth is not linear and if we've learned one thing on our journey, it's that no plan survives first contact with the enemy. Be honest with your team - protecting them from bad news isn't helpful and, when the chips are down, I've realised most people are good in a crisis. It's been key to building culture, business resilience and, most importantly, trust.

In terms of the business community we support, it has been incredible to witness the journey of both larger and medium-sized enterprises increasingly valuing the ability of the Neighbourly platform to showcase their impact. Data really is king, and as a result we've seen the demand for insightful impact reporting surge as employees and investors want more transparency from a business with regards to their corportae social responsibility (CSR) efforts.

We've also learnt that to differentiate ourselves in the market it's not just about providing the numbers. Actionable insight into what a company's donations and support has led to in the community is what stakeholders really want to hear about.

What early-stage decision did you make at Neighbourly that had an outsized impact on its long-term growth?
Neighbourly has a big vision and was described in the early days as the 'social network for social good', but that is a lot of stakeholders to keep happy and engaged, and building an audience is hard and expensive. So, we stopped trying to keep everyone happy and focused on two key stakeholder groups: big businesses and local charities. That decision made it easier to articulate our value proposition, define our product strategy and monetise the platform in a responsible and sustainable way.

Related: Testing the Limits of Sustainability

How do you foster innovation within Neighbourly to keep your platform evolving while staying true to its social mission?
Over the last ten years, Environmental, Social, and Governance (ESG) has become central to business operations. What was initially a principle adopted by larger companies, due to greater scrutiny from investors, regulators and stakeholders, has now been embraced by smaller businesses, as consumers become increasingly focused on sustainability.

In 2023, we launched new platform capability to allow medium sized businesses to access our technology to increase their local, social and environmental impact. With an increased focus on sustainability goals, there is a greater focus too on impact reporting. In response to this we have developed real-time dashboards so businesses can easily access and fully manage their own localised campaigns. This has been vital in enabling companies to understand what is needed locally, while also providing them with the ability to prove impact to staff, customers and stakeholders.

What pivotal moments shaped the trajectory of Neighbourly's growth in ways you didn't anticipate?
As market conditions started to change in 2022, there was a marked shift in the tech sector and growth investor mindset, moving away from 'growth at all cost', to demonstrating a clear pathway to profitability. I like to think we have always run a tight ship, but that period forced our hand, and we have become even more efficient and more productive as a result. Most of all, it has led to various team members seeing it as an opportunity to step up and that has been brilliant.

As a CEO balancing profit and purpose, how do you keep your team motivated and aligned with the company's mission while achieving business targets?
It's really important as a leader to give people within your organisation a voice on the issues that matter most to them. At Neighbourly, we live our values and ensure all staff have the opportunity and time to volunteer for local good causes they care about. This is so important for staff wellbeing, helping to motivate the team. Previous Neighbourly research found that 61% of volunteers rated their happiness at work as greater than 7/10, compared to 55% of employees who had never volunteered.

We've found this has also enabled our team to grow as they have had the opportunity to develop new skills and gain valuable, meaningful experience that has a material benefit on their community and wider society. This has in turn developed our relationship with local good causes, supporting our growth journey.

With sustainability and social responsibility becoming key business imperatives, how do you see Neighbourly's role evolving in shaping future corporate strategies?
Our mission is to put local impact at the heart of responsible business and, in doing so, improve brand sentiment, increase employee engagement and build trust, all of which are key growth drivers for business. When employees see the impact they can have on the local community, this can foster a sense of belonging and value in an organisation. These schemes can also support talent development, recruitment and company performance, vital during a time of stretched budgets and a cost of living crisis.

For entrepreneurs looking to blend purpose with profit, what's the most important mindset shift they need to succeed?
My biggest piece of advice to entrepreneurs would be to understand that real impact often takes time. Blending purpose with profit requires focusing on the long-term vision of the company, balancing immediate financial success with lasting sustainable impact. CEOs should focus on building a resilient business model, avoiding the temptation to scale too quickly. This includes investing in areas that lead to sustainable growth including developing high-quality products that respond to the needs of the community.

Related: Why B Corp Certification is a Game Changer for Sustainable Businesses