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Why is social entrepreneurship the need of the hour during Covid-19?

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In recent years, the corporate world has witnessed a seismic shift in the way organizations measure their success. With the spread of information on the Internet far and wide, the general public is now more informed about social problems and business responses than ever before. Consequently, while financial fortunes and year-over-year growth numbers remain important barometers of prosperity, companies are realizing that the general public is emphasizing their contributions to society. In this article, we analyze why social entrepreneurship is critical during a pandemic like Covid-19.

A new measure of success in the Covid-19 era

According to Deloitte’s Human Capital Trends study, a staggering 86% of millennial respondents surveyed said that business success should be measured in terms of more than just financial performance. In other words, an increasing proportion of the world’s population now believes that their employer should do the “right thing” when it comes to important social issues: about 75% in 2019, according to the 2019 Edelman Trust Barometer.

With a growing sense of civic responsibility spreading among younger generations, social enterprises have become the de facto option for many aspiring entrepreneurs. This is especially true in smaller economies that are dealing with environmental and social challenges. That said, the popularity of social entrepreneurship has grown even more in light of the current Covid-19 pandemic, which has threatened the livelihoods of half the world’s workforce and the existence of some companies.

It goes without saying that social innovation and entrepreneurship can be extremely impactful in these turbulent and uncertain times by supporting impoverished sectors of society and by providing services such as healthcare, sanitation and education. According to EASPD, a European-based NGO, EU social enterprises join the fight against Covid-19. In Belgium, Maatwerk has commissioned nine facilities with the production of 10,000 surgical masks per day and another 12 for the production of medical supplies.

The role of for-profit organizations in the model of social entrepreneurship.

With the effects of the pandemic being felt everywhere, even larger companies are coming out in support of social entrepreneurship. According to a report by the World Economic Forum, 40 global organizations, including IKEA, SAP and Salesforce, have pledged to financially support thousands of social entrepreneurs spread across 190 countries.

François Bonnici, director of the Schwab Foundation for Social Entrepreneurship, said: “Social entrepreneurs and their community partners have been working for years to solve market failures and demonstrate more sustainable and inclusive models. These front-line organizations are now facing to bankruptcy and severe constraints while also innovating and responding to this global pandemic. Through this Alliance, members are pledging support for social entrepreneurs to protect decades of work in the impact sector. ”

Is social entrepreneurship a sustainable business model?

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For those questioning the financial stability of these companies, there appears to be little need for concern. A number of other new social ventures have become profitable over the years, all without compromising their founding principles. According to the British Council, social cooperatives in Kenya represent 45% of the country’s GDP, a higher proportion than the country’s public and private sectors.

Examples of profitable social ventures include Merit, a clothing brand that donates a percentage of all purchases to fund college scholarships, and Humble Bundle, a digital store for digital media that splits all of its customers’ revenue among them, creators, and various organizations. charitable. In addition, a report from the G8 Social Impact Investment Working Group stated that social sector organizations already represent “more than 5% of GDP in various countries, including Canada, Germany, the United Kingdom and the United States. In some countries employ more than 10% of the workforce. ”

For many angel investors and venture capital firms, social organizations that run on a sustainable business model can offer them a promising investment opportunity, on par with any other for-profit startup. However, despite the fact that many of these organizations are reportedly underfunded, investors may have difficulty identifying promising companies in the absence of high-quality data and reliable figures. Platforms like
Oddup They aim to alleviate this problem by offering real-time information on startups from around the world. It also offers a variety of proprietary metrics, including
Oddup Score and
Reference assessment, which represent the health and valuation of a startup, respectively.

It is increasingly clear that social enterprises are no longer just a short-term trend. With many organizations inadvertently gaining goodwill by having an impact on the lives of individuals and communities in 2020, investing in “social good” may end up being the best strategies for small and large businesses, even long after the pandemic comes to an end.

Disclaimer: This article was produced on behalf of Oddup by the Times Internet Spotlight team.

Times of India

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