Social entrepreneurship is gradually transforming into mainstream entrepreneurship. Over the past few years, we have seen an upsurge in the number of social initiatives. In fact, social entrepreneurs all over the world are increasingly realizing that they have the expertise, knowledge and persistence to make a huge impact on the lives of the people in their society and also across the globe.
Today, social enterprises contribute to all facets of society, offering supportive and life-changing facilities, engaging a massive number of individuals and generating millions of dollars.
Whether you’re considering launching your own social enterprise, or want to attract investors, here are a few social entrepreneurship trends that you should be aware of.
Ground-Breaking Approaches to Social Change
The term ‘social entrepreneurship’ is transforming into social innovation that brings about not just incremental but intense change to social problems. Such as the goal of one Ethiopian social enterprise taking the lead to end child labor through fashion.
In 2020, social entrepreneurs will need to innovate by creating out of the box solutions to create value for society. They’ll have to offer superior, innovative or better-quality solutions for the issues they identify in their societies and globally.
Helping the Needy to Help Themselves
Social entrepreneurship is no longer just about solving the problems of society. In fact, social enterprises are now focusing on empowering societies so that they can help themselves.
For example, consider the situation in Kenya. According to the British Council, cooperatives make up 45% of the country’s GDP, producing more revenue than either public or private divisions. Simultaneously, social enterprises are providing employment opportunities and optimism in areas that need it most, accompanied by facilities and goods that can assist to protect lives.
Increasing Inclusiveness and Diversity
Social enterprises play a huge role in changing lives of the people which appeals to diverse individuals. This is why we are witnessing far more diversity across the social domain.
A report by Santander states, nearly 40% of social enterprises in the UK are directed by females, 31% have black, Asian or minority ethnic executives, and 40% have a manager with a disability.
Thus, in 2020, it will not matter what your background is, where you are from or what challenges you have faced in life. All that matters is how accepting and diverse you are as a social enterprise. This will give businesses a better prospect to nurture and flourish.
Financially Profitable Social Enterprises
During the premature phase of social entrepreneurship, the majority of the leading establishments that initiated significant social innovations were non-profits. However, for numerous young individuals today, social entrepreneurship is about a financially feasible initiative.
This is why, nearly 25% of social enterprises in the Philippines have become multi-organizational systems, which are amalgamation of for-profit and nonprofit business arrangements. According to the Social Enterprise UK, almost 50% of social enterprises report a profit and an additional 26% breakeven, which shows that the majority are monetarily stable.
Moreover, social enterprises are striving for monetary sustainability wherever possible. They are leveraging market powers and embracing corporate practices and philosophies to create a commercially viable framework. This trend will continue in the upcoming years.
Social entrepreneurship is an agenda for accomplishing positive social change – an agenda that is no longer restricted to a particular country or a particular society. In the years ahead, it is expected to become more diverse and inclusive.
Although these four trends analyze emerging social enterprises, we believe the key to success is to sustain the human resource behind them. Social advancement has the prospect to go further if we learn to appreciate, identify and develop top talent and provide them with all the necessary tools they need to succeed.