Позитивные изменения. Том 3, № 4 (2023). Positive changes. Volume 3, Issue 4(2023)
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A core principle of social enterprises is the respect for and support of the underprivileged. These businesses oppose exploitation in all forms, ensuring fair wages that never fall below subsistence minimum, practicing inclusive employment, and actively hiring individuals with disabilities. For instance, Azima Dhanjee’s ConnectHear in Pakistan develops technologies for the hearing impaired and assists other companies in employing and collaborating with people with disabilities. Meanwhile, Tiemen Ter Hoeven’s Roetz employs individuals with mental challenges and those in difficult economic or social circumstances.
Global conflicts and economic crises influence migration patterns, posing unique challenges for social entrepreneurs working with refugees and migrants. Governments’ responses vary, with many policies exacerbating inequality and the plight of refugees. In contrast, social enterprises focus on addressing the security, health, education, and employment needs of these groups.
For example, Kakuma Ventures in Kenya’s Kakuma refugee camp offers digital access and services, connecting residents to the internet for online education (including higher education), job finding, and remote work. This connectivity facilitates quicker integration into local society, as described by camp co-founder Innocent Tshilombo. Such initiatives empower refugees, reducing their reliance on host country assistance.
In Germany, the StartSteps startup aids migrants in entering the tech industry. It offers career guidance, training assistance, and job placement. Mozamel Aman, co-founder and CEO of StartSteps, explains: “Our aim is to empower refugees to be self-reliant and financially independent, contributing to the society they live in, rather than solely relying on state aid. While not all governments recognize the importance of supporting refugees in this manner, we are committed to this exact way of addressing the global challenges of refugee and migrant integration.”
Social entrepreneurs are deeply committed to supporting ethnic minorities and others facing inequality in opportunities. By working at a grassroots level, they aim to comprehend the cultural context of each country and community, using their ventures as catalysts to address challenges faced by vulnerable populations. They help local residents find employment and foster community development.
For instance, the Durian Foundation in Nigeria aids rural inhabitants by demonstrating how to utilize local resources and waste, like bamboo. These villagers learn to craft alternatives to plastic using it and produce biogas from waste as a sustainable substitute for fossil fuels.
By working at a grassroots level, social entrepreneurs aim to comprehend the cultural context of each country and community, using their ventures as catalysts to address challenges faced by vulnerable populations.
“Preserving the identity and culture of local people is crucial,” observes Tony Joy, co-founder and executive director of the Durian Foundation.
“When you take pride in your roots and heritage, you’re more driven to make positive changes in your land, including conserving resources and protecting nature. I believe change starts locally and then expands globally. So, supporting and initiating change at the local level is essential.”
Social entrepreneurs also recognize that local community members best understand their context and challenges. Thus, initiatives in specific regions typically involve local partnerships, building an ecosystem that strengthens these communities. Local production is also environmentally beneficial as it conserves resources and reduces the need for transportation. An example is the 2050 Factory, addressing textile waste issues. It focuses on exclusively local production and plans to expand its network of factories across Europe.
Social entrepreneurs are driving the creation of a new economy. Some advocate for an ‘impact economy,’ a topic that sparked debates among forum speakers who explored the differences between these economic types and the roles social entrepreneurs play in each.
Katie Hill, a policy advisor for the European Union at B Lab, highlights the impact economy’s goal of involving businesses in addressing social and environmental issues. The focus shifts from GDP to the positive impact companies have on the world. Investors play a crucial role in this: if they, when investing, are interested in the company achieving social impact, they make sure the company actually does that.
Investors play a crucial role in impact economy: if they, when investing, are interested in the company achieving social impact, they make sure the company actually does that.
“The impact economy can reduce hyperconsumption, encouraging people to mend an old jacket instead of buying a new one,” Hill explains. “If there are not too many people around desperate to sell you the new thing, and someone suggests repairing an old one, such situation will benefit everyone. But it’s not just investors who are vital; everyone’s participation counts. Social entrepreneurs, with their invaluable experience, should be exemplified.”
However, the impact economy does not necessitate a complete replacement of the existing financial model. According to Hill, significant systemic changes can distract from immediate, tangible improvements. The goal should be to refine the current system, Katie believes: “It’s about upgrading the train we’re on, not changing trains. The competitive economic system we have can continue, just in a more refined form.”
In contrast, proponents of a new economy seek a fundamental shift away from the current system, directing resources towards enterprises that prioritize people and the planet. Within the current economic model, people keep on neglecting the elephant in the room, it being big capital and its distribution, believes Erinh Sahan, Head of Business & Enterpises at Doughnut Economics Action Lab. He argues that the dominant role of finance needs to be diminished: today it determines what smaller businesses can do and what they cannot. And the big capital does not particularly like the idea of financing solutions to social problems because those companies don’t know if the money will pay off. To change the situation, it is necessary to build enterprises and financial structures so as not to depend only on big capital and thus fight the ‘elephant’, Sahan believes.
“This dependence on finance is the main problem that holds businesses back. Turns out we actually are on the wrong train, one that’s been on the same track since the 20th century, prioritizing profit over all else, so our whole life and economy is at the service of finance. The 21st century demands a systemic change to realign our economic priorities and power balance. We need a new economic model that serves life, not just finance.” – says Sahan.
We must shift towards an economy that prioritizes the planet and its people. Social entrepreneurship is key in this transition.