{"id":128177,"date":"2026-09-16T05:54:56","date_gmt":"2026-09-16T05:54:56","guid":{"rendered":"https:\/\/alj.com\/?post_type=spotlight-fadyjameel&p=128177"},"modified":"2026-09-16T05:54:56","modified_gmt":"2026-09-16T05:54:56","slug":"how-can-social-enterprise-contribute-to-a-brighter-future","status":"publish","type":"spotlight-fadyjameel","link":"https:\/\/alj.com\/en\/spotlight-by-fady-jameel\/how-can-social-enterprise-contribute-to-a-brighter-future\/","title":{"rendered":"How can social enterprise contribute to a brighter future?"},"content":{"rendered":"

Globally, social enterprises are on the rise in a big way.\u00a0 A recent report<\/a> by the World Economic Forum<\/a> (WEF) suggests there are now around 10 million social enterprises putting purpose before profit globally.\u00a0 These schemes span more than 80 different countries across multiple continents including emerging markets in Africa, Asia and the Middle East.\u00a0 Together they generate around US$ 2 trillion in revenue annually and create nearly 200 million jobs for people who would otherwise struggle to care for their families or pay their bills.[1]<\/sup><\/a><\/p>\n

Combined, the sector is even larger than the US$ 1.57 trillion clothing industry and more than twice the size of the US$ 875 billion advertising industry. \u00a0Moreover, the sector is helping to improve gender equality.\u00a0 Approximately half of all social enterprises are led by women<\/a>, compared to around 20% of traditional businesses.\u00a0 So, what exactly do we mean when we talk about social enterprises, and how are they so effective at changing lives?<\/p>\n

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Social enterprises in action<\/h2>\n

For single mother Qiqa Nyangiw in South Africa, social enterprise means earning enough money to look after her family.\u00a0 Child grants and government maintenance payments were insufficient to meet their basic needs and the future looked bleak.<\/p>\n

\u201cLife was a constant battle.\u00a0 As the sole provider for my family, unemployment was a heavy burden.\u00a0 The stress was overwhelming, leaving me emotionally drained and helpless.\u00a0 There were nights we went hungry.\u00a0 I was too ashamed to ask for help from anyone,\u201d<\/em> she recalls[2]<\/sup><\/a>.<\/p>\n

But then salvation appeared in the form of TCB<\/a> (Taking Care of Business), a social enterprise scheme which since 2010 has helped thousands of people across South Africa collect, repair and resell unwanted clothing and other goods to secondary markets for profit.\u00a0 Qiqa reports that she can now put food on the table without the anxiety of empty cupboards, giving her a sense of independence she never thought possible.<\/p>\n

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Her tale is far from uncommon.\u00a0 TCB is just one of a galaxy of social enterprise schemes around the world providing skills, equipment and contacts to communities most in need.\u00a0 Social enterprise schemes fill the gap where traditional private sector businesses and state support offer insufficient opportunities for employment and security.<\/p>\n

Social enterprises can take several forms, but typically they aim to fulfil a social need while simultaneously generating revenue to sustain their own operations. \u00a0They might be microfinance organizations providing small loans to entrepreneurs in developing countries to stimulate economic growth. \u00a0Or fair-trade businesses supporting farmers in emerging markets selling ethically-sourced goods.\u00a0 Or community development corporations injecting cash into local communities to improve quality of life by creating new jobs.\u00a0 Or even grassroots renewable energy collectives, generating income from environmentally friendly power sources such as wind and solar.<\/p>\n

On the ground, social enterprises span multiple realms, from agriculture and manufacturing to financial services and healthcare.\u00a0 They can assume many guises, their variety as limitless as human imagination and endeavor.\u00a0 To illustrate their diversity, here are a few notable examples already making a daily difference to communities around the world.<\/p>\n

Brazil-based Green Mining<\/a> has developed smart \u2018reverse logistics\u2019 technology to help companies recover product packaging from consumers and return it the supply chain.\u00a0 So far it has found new use for 10.1 million kg of unwanted packaging, in the process saving some 12.7 million kg of unnecessary carbon emissions.<\/p>\n

EMFED Farms<\/a>, headquartered in Ghana, provides management services to smallholder cocoa farmers who are aged or infirm and cannot afford the upfront cost of labor.\u00a0 In its first five years of operation, EMFED increased average yields from 484 kg to 894 kg and raised the average net income of farmers at a CAGR of 49%.<\/p>\n

Classical Handmade Products<\/a>,<\/u> based in Bangladesh, has created 4,500 jobs to support rural communities while introducing products made from indigenous raw materials to global markets.\u00a0 The program prioritizes safe and comfortable working conditions for employees, along with regular medical check-ups.<\/p>\n

In Jordan, the Jordan River Foundation<\/a> showcases bespoke handicrafts made by local women which are then sold via IKEA stores worldwide.\u00a0 The scheme emphasizes quality craftmanship, cultural heritage and lean production processes, and has so far benefitted almost 80,000 individuals.<\/p>\n

In Mexico, the Hipocampus Centros de Aprendizaje<\/a> provides affordable childcare and education for children aged one to six.\u00a0 It provides work for local women, frees up caregivers to focus on generating their own income, and helps develop the next generation of entrepreneurs.\u00a0 Since 2016, it has established 12 learning centers across five Mexican states (Guanajuato, Michoac\u00e1n, Veracruz, State of Mexico and Durango).<\/p>\n

These undertakings, and hundreds more like them, represent a sizable chunk of commerce, comprising 3% of all businesses worldwide and more than 2% of global GDP.[3]<\/sup><\/a><\/p>\n

With environmental, economic and cultural benefits, social enterprises have the power to inspire positive change everywhere.\u00a0 What is stopping them from scaling even greater heights?<\/p>\n

What hinders the progress of social enterprises?<\/h2>\n

Despite proof of their effectiveness, the WEF asserts that social enterprises face unique challenges at every stage of their journey, from launch to expansion.[4]<\/sup><\/a><\/p>\n