style="font-size:15px;"> Journalist
Social Enterprises (SEs) are businesses that, like any commercial entity, generate revenue through the sale of goods or services. However, they are distinct in their core mission: to address social and/or environmental issues. This mission is fundamental to their operations, and unlike traditional businesses, social entrepreneurs prioritize their mission over profit. For instance, SEs consistently reinvest a portion of their profits to achieve social or environmental objectives.
Wan Dazriq, co-founder and managing director of PurpoSE Malaysia, points out that the concept of social business is often misunderstood by society and government alike. If the primary goal of these enterprises is to address social issues, why the need to generate profit? Why not operate solely as non-profits? Unlike non-profit organizations, which often rely on grants, donations, and sponsorships, social enterprises aim for self-sufficiency and stability. Thus, they represent another crucial sector of the economy (other than NGOs), capable of influencing the global social and environmental landscape.
“Ultimately, social entrepreneurs’ aim is to better the world, making profit a means to an end rather than the goal itself,” explains Wieteke Dupain, CEO of Euclid Network, Denmark. “Currently, only 10 % of European companies are social enterprises. Our objective in the coming years is to double this to 20 %. Achieving this requires funding – we need to invest in and develop social enterprises. And for this growth, these enterprises must also generate and reinvest their earnings.”
Jerry Higgins, founder and managing director of the Social Entrepreneurs World Forum, notes that despite significant progress in the last 30 years, we cannot yet claim a global transformation towards social responsibility in business. However, social enterprises are increasingly becoming a trend. The mindset, especially within the business community, has evolved to recognize the importance of not just financial capital but also natural, social, and cultural capital.
“Social entrepreneurs are crafting significant values beyond profit,” Higgins elaborates. “Their work underscores the worth of human life and dignity, resonating deeply with contemporary societal values that are increasingly being recognized and emphasized.”
Social enterprises are champions of the circular economy, emphasizing resource renewal, recycling secondary materials, and shifting from fossil fuels to renewable energy sources. These initiatives demonstrate social entrepreneurs’ commitment to conserving planetary resources and prioritizing public health. For example, they avoid using ingredients and materials harmful to humans and the environment, minimize unnecessary transport, reduce waste production, and recycle what is already available.
Take Fairphone, a Dutch company deeply concerned about the growing problem of electronic waste, which is increasing faster than any other type of waste. Annually, 1.4 billion smartphones are sold, each with a lifespan of just two to three years, and merely 20 % of these devices are recycled. Monique Lempers, Fairphone’s Impact Innovation Director, attributes this issue partly to the economic models of many businesses, which push for higher sales by convincing consumers to replace phones that are still functional. This trend harms the planet through excessive resource consumption and results in toxic waste affecting people and wildlife. Fairphone addresses this by manufacturing smartphones from recyclable materials and designing devices for reparability.
Social enterprises are champions of the circular economy. They minimize unnecessary transport, reduce waste production, and recycle what is already available.
Another Dutch initiative, 2050 Factory, tackles textile waste. According to founder Naz Kawan, too much fabric is produced and excess is discarded. 2050 Factory seeks out surplus fabric from other manufacturers, reducing the need for new production, and repurposes it. Similarly, Roetz, another Dutch company, produces bicycles from scrap metal, recycling old and discarded bikes.
Hester Van Buren, Vice Mayor of Amsterdam, notes: “Due to the climate crisis, business as usual is no longer viable. Companies must mitigate their environmental impact. Unfortunately, many still expand at the expense of nature and human well-being, disregarding the finite nature of our planet’s resources. To change this trajectory, we need fundamental shifts in how we work, produce, consume, and travel. Innovation, mutual care, and respect for nature are key. Social entrepreneurs are at the forefront of this change.”
A core principle of social enterprises is the respect for and support of the underprivileged. These businesses oppose exploitation in all forms, ensuring fair wages that never fall below subsistence minimum, practicing inclusive employment, and actively hiring individuals with disabilities. For instance, Azima Dhanjee’s ConnectHear in Pakistan develops technologies for the hearing impaired and assists other companies in employing and collaborating with people with disabilities. Meanwhile, Tiemen Ter Hoeven’s Roetz employs individuals with mental challenges and those in difficult economic or social circumstances.
Global conflicts and economic crises influence migration patterns, posing unique challenges for social entrepreneurs working with refugees and migrants. Governments’ responses vary, with many policies exacerbating inequality and the plight of refugees. In contrast, social enterprises focus on addressing the security, health, education, and employment needs of these groups.
For example, Kakuma Ventures in Kenya’s Kakuma refugee camp offers digital access and services, connecting residents to the internet for online education (including higher education), job finding, and remote work. This connectivity facilitates quicker integration into local society, as described by camp co-founder Innocent Tshilombo. Such initiatives empower refugees, reducing their reliance on host country assistance.
In Germany, the StartSteps startup aids migrants in entering the tech industry. It offers career guidance, training assistance, and job placement. Mozamel Aman, co-founder and CEO of StartSteps, explains: “Our aim is to empower refugees to be self-reliant and financially independent, contributing to the society they live in, rather than solely relying on state aid. While not all governments recognize the importance of supporting refugees in this manner, we are committed to this exact way of addressing the global challenges of refugee and migrant integration.”
Social entrepreneurs are deeply committed to supporting ethnic minorities and others facing inequality in opportunities. By working at a grassroots level, they aim to comprehend the cultural context of each country and community, using their ventures as catalysts to address challenges faced by vulnerable populations. They help local residents find employment and foster community development.
For instance, the Durian Foundation in Nigeria aids rural inhabitants by demonstrating how to utilize local resources and waste, like bamboo. These villagers learn to craft alternatives to plastic using it and produce biogas from waste as a sustainable substitute for fossil fuels.
By working at a grassroots level, social entrepreneurs aim to comprehend the cultural context of each country and community, using their ventures as catalysts to address challenges faced by vulnerable populations.
“Preserving the identity and culture of local people is crucial,” observes Tony Joy, co-founder and executive director of the Durian Foundation.
“When you take pride in your roots and heritage, you’re more driven to make positive changes in your land, including conserving resources and protecting nature. I believe change starts locally and then expands globally. So, supporting and initiating change at the local level is essential.”
Social entrepreneurs also recognize that local community members
