As the world faces multiple crises, efforts to meet the 2030 deadline for the UN Sustainable Development Goals (SDGs) are falling behind. Government leaders, civil society, and businesses are actively seeking solutions, with social entrepreneurship emerging as a critical driver for accelerated progress.
Social enterprises, businesses that prioritise purpose over profit, are at the forefront of this movement. According to the latest report from the UN, Navigating New Horizons, human ingenuity, particularly within the realm of social entrepreneurship, holds untapped potential to realign progress towards the SDGs.
Globally, social enterprises are making a significant impact, with around 10 million such ventures generating approximately $2 trillion in annual revenue. These enterprises also create 200 million jobs worldwide, with women leading one in two of them, compared to only one in five for conventional businesses. Their influence extends far beyond economics, as they address pressing social and environmental issues that benefit local communities.
Advertisement
In terms of scale, the sector surpasses the $1.57 trillion fashion industry and is more than double the size of the $875 billion advertising industry. This growing movement is reshaping how business is done, challenging traditional models that contribute to inequality and environmental degradation.
Social enterprises present a solution to many global challenges by embracing business models that balance profitability with positive social and environmental outcomes. These organisations strive to build an inclusive economy where businesses, people, and nature coexist and thrive.
However, their potential to drive change is hindered by a $1.1 trillion funding gap, which needs to be addressed to unlock their full power.
Advertisement
Empowering social entrepreneurs is essential to creating a fairer, more equitable global society. Frontline communities, particularly those in low- and middle-income countries, should be given the authority and resources to tackle crises such as poverty, inequality, and environmental degradation.
Social entrepreneurs, who often work closely with these marginalised communities, are already creating meaningful, locally-driven solutions.
Social enterprises are not only addressing immediate local challenges but are also driving systemic change. Many are tackling issues like healthcare data bias, as seen in the efforts of the non-profit SAS Brazil. Their work is proof that social entrepreneurship can reshape industries and address deep-rooted societal problems.
The growing recognition of social entrepreneurs’ contributions is leading to stronger partnerships between them and mainstream businesses.
Multinationals are increasingly collaborating with social enterprises through initiatives like social procurement and co-creating new products and services. Some companies have also made commitments through programmes such as the Rise Ahead pledge, investing in social innovation and providing mentorship.
For the world to stay on track to achieve the SDGs by 2030, social entrepreneurship must play a central role. Addressing power imbalances and giving agency to communities most affected by global crises is crucial.
By working with social enterprises, conventional businesses can learn from their innovative models and scale solutions that create lasting positive impacts.
Advertisement
The future requires a radical transformation of business practices.
Dialogue and collaboration between business leaders and social entrepreneurs will be key to building a more inclusive, sustainable economy that meets the urgent challenges of our time.
