Social entrepreneurship is gaining increased significance as it enables businesses and governments to make informed decisions about global socioeconomic and environmental issues. It constructs a blend between commercial enterprise and charitable non-profit organization, with a focus on creating business models that revolve around low-cost products and services to address social disparities.
The Role of Social Entrepreneurs
Social entrepreneurs are sometimes referred to as social innovators for their role in instigating significant change using innovative ideas. They identify societal problems and use their plans to create solutions. Their impact can be seen across various areas, such as educational programs, provision of banking services in underserved areas, and support for children orphaned by epidemic disease.
Importance of Social Entrepreneurs
These change-makers primarily focus on social problems and actively mobilize available resources to create effective social arrangements. They serve as strong catalysts and influencers in society, not only focusing on the creation and sustenance of social value but also driving continuous innovation, adaptation, and learning. They take bold actions while staying accountable to their constituents, attracting people through their compelling ideas and affirmative contributions to improving people’s lives.
Social Entrepreneurs’ Contribution to India’s Development
India’s development sector has seen rapid transformations, including the emergence of for-profit social enterprises. These enterprises generate enough funds to run their operations without depending on donations or grants. India’s social entrepreneurs are being nurtured and lauded for their efforts to meet the country’s challenging developmental demands.
Impact of Social Impact Investing
According to the Impact Investors Council (IIC), approximately 600 impact enterprises in India have affected 500 million lives, attracting over USD 9 billion in capital. The IIC is dedicated to encouraging private capital to bridge the country’s social investment gap, while also advocating the development of an impact investment asset class.
Deepening the Social Innovation Movement
Present-day social entrepreneurs have become notable innovators and dynamic problem-solvers, contributing significantly to India’s development. These enterprises leverage strategic collaborations, both domestically and internationally, to provide innovative solutions to unique problems. Rapid digitization initiatives and extensive use of technology by the government have further spurred their innovation drive.
Influence and Support from the Government
The Indian government’s support for startups and the imminent launch of the Social Stock Exchange have created a conducive environment for social entrepreneurship in the country. The Securities and Exchange Board of India’s recent introduction of the framework for a Social Stock Exchange will enable social entrepreneurs to raise additional funds and extend their impact and reach.
Adopting a Multi-Dimensional Approach
Sustainability has become increasingly important to businesses and governments alike, with social entrepreneurs and their business models playing a crucial role in this shift. However, there exists a necessity for a multidimensional approach to address the different facets of poverty, including cultural, social, psychological, and emotional aspects. Social entrepreneurial models are particularly adept at customizing solutions to these multifaceted issues.
Nurturing Social Entrepreneurship in India
Looking ahead, it is trusted that these social cause enthusiasts will bear a larger share of responsibility and contribute significantly to the economy in the next 25 years. For over a decade, the Schwab Foundation for Social Entrepreneurship and the Jubilant Bhartia Foundation have nurtured social entrepreneurship in India through their annual Social Entrepreneur of the Year (SEOY) India Award. The finalists of this year’s award mirror the positive indications of the sector’s growth and reassure us of its continued prominence in the future.