Social entrepreneurship is a concept that has been gaining momentum globally, challenging the traditional notion of conducting business purely for profit. While profit-driven business models dominate the market, social entrepreneurship prioritises making a positive impact, aiming to right the wrongs of the market and build more inclusive economies.
Vincent Odhiambo, the regional director at Ashoka East Africa, which is part of a global network of social entrepreneurs, explains that the purpose of social entrepreneurship is to solve market failures, improve collapsing systems, and demonstrate more sustainable models for economic and social development.
One of the main challenges faced by social entrepreneurs is measuring their social impact. Unlike traditional entrepreneurs who primarily focus on financial metrics such as revenue and profit, social entrepreneurs must also demonstrate and measure their social impact. This can be a complex and subjective task, especially for those lacking the latest tools and expertise.
Despite the challenges, the field of social entrepreneurship is growing, with a recently released report documenting 10 million social enterprises globally. However, for the sector to reach its potential, the challenges it faces, such as lack of awareness, must be addressed. There is also a need for a collaborative and supportive ecosystem to enable social entrepreneurs to thrive and deliver on their social impact missions.
Examples of successful social enterprises include Zana Africa, which manufactures affordable sanitary pads from locally-sourced materials, and Positive Exposure, which promotes the well-being of individuals with albinism. These businesses demonstrate the potential of social entrepreneurship to address deep societal issues and bring about positive change.
Another inspiring example is True North, run by renowned psychologist Lucy Mukuria, which focuses on integrating former military officers into society and addressing the challenges of PTSD among veterans.
In conclusion, social entrepreneurship is challenging traditional business models, transforming the way we perceive the purpose of business. By prioritising social impact over profit, social entrepreneurs are pioneering innovative solutions to some of the world’s most pressing challenges. As awareness and support for social entrepreneurship continue to grow, we can look forward to a future where business is not only about making money but also about making a meaningful impact on society.