The term ‘Social Entrepreneurship’ is gaining momentum in India due to its potential in addressing pressing social and environmental issues. Recently, the Union Minister of Skill Development & Entrepreneurship, during a Social Enterprise Conclave organized by the Institute of Rural Management, Anand (IRMA) in association with LIC Housing Finance Limited, kicked off the 2nd edition of the Social Trailblazer Program.
The Social Trailblazer Programme aims to invigorate the Social Entrepreneurship Ecosystem in India. This program focuses on nurturing early-stage rural, social, and collective enterprises. Its principal objective is to stimulate the progress of social enterprise and social investment to tackle entrenched social and environmental issues. It targets various sectors including Agriculture, Green Technology, Finance Technology, Education, Renewable Energy, Healthcare & Life sciences, Human Resources, Marketing, Social Impact, and Waste Management.
Financial Support and Incentives for Startups
A key feature of the Social Trailblazer Program is its financial award to selected startups. Top 10-12 chosen startups will receive up to INR 25,00,000 as Equity Funding and up to INR 5,00,000 as Grant Funding. They will also be provided with a year of bespoke incubation and acceleration support at the IRMA ISEED Foundation. Additionally, they could receive up to INR 50,00,000 as a follow-on investment from IRMA ISEED’s Networks and up to USD 1000 worth of AWS (Amazon Web Services) credits and technology assistance.
Understanding Social Entrepreneurship
Social entrepreneurship utilizes business models to address social and environmental problems. Social entrepreneurs, or social innovators, bring about positive change through innovative ideas. They identify problems and create solutions with the dual intention of generating revenue and creating a social impact. Such entrepreneurship resonates with trends like Socially Responsible Investment and Environment, Social, and Governance (ESG) investing.
Types of Social Entrepreneurship
The various types of social entrepreneurship include Community Initiative, Non-Profit Organization, Social Enterprise, Co-Operative, and Social Conscious Business. Each type plays a unique role in addressing specific issues within communities, especially those that are marginalized or underprivileged.
Achievements of Social Entrepreneurship
According to the Impact Investors Council (IIC), over USD 9 billion has been invested in over 600 impact firms in India that have positively impacted 500 million lives. These entrepreneurs have improved education for more than 226 million children and teenagers, helped reduce over 192 million tonnes of CO2, promoted social inclusion for over 25 million individuals, and assisted more than 100 million people in accessing electricity.
The Need for More Social Entrepreneurs
Social entrepreneurs can drive significant social change on a large scale. They play a vital role in promoting inclusive growth by creating opportunities for marginalized communities and tackling environmental challenges. They can also bridge the gap between public and private sectors by leveraging public resources and policies to create a more significant social impact.
The Challenges of Social Entrepreneurship in India
Despite its potential, social entrepreneurship in India faces several challenges. Attracting investors interested in addressing potential future issues can be difficult. Developing a strong business strategy is another challenge, as they need support from professionals like attorneys, accountants, and experienced entrepreneurs. Funding is another major obstacle as social enterprises often have to balance financial returns with social outcomes. Lastly, the demanding and stressful nature of social entrepreneurship can lead to burnout, exhaustion, or loss of motivation.
Looking Ahead
Social entrepreneurship has evolved over the years and has provided innovative and profitable ideas that address social problems. The ecosystem in India is among the most developed in the world, offering numerous opportunities to collaborate with local partners, learn from their experiences, and pursue creative solutions to various social issues. The need of the hour is a nourishing ecosystem for social entrepreneurs to take up programs, bridge pandemic-induced gaps, scale-up existing initiatives, and be part of the mainstream response system.
