Giving Compass' Take:
- The authors discuss the difficulties for social entrepreneurs from vulnerable communities to thrive and solve the social issues they continue to face.
- How can donors help support more inclusive social entrepreneurs and help create environments for them to succeed?
- Check out these social entrepreneurs to look out for in 2023.
What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
In the last two decades, the idea that social entrepreneurship could be a way of solving social problems has found widespread appeal. Using market mechanisms, many social entrepreneurs have followed the example of Muhammad Yunus and Grameen Bank to set up enterprises with a main objective of tackling social or environmental issues. All over the world, we are seeing the proliferation of an ecosystem that comprises impact investors, accelerators, support organizations, and social entrepreneurs who are all driven by the possibility of generating shared value so that both companies and society win.
This purpose, which drives many entrepreneurs, influences not only the field of social entrepreneurship but also organizations that are aligned with their movements and initiatives, such as B Corps or the United Nations’ Global Compact. There are even cases of the state and its institutions operating in this area, such as through social impact bonds and the creation of tax incentives for social investment. These trends have direct implications for society, and, as a result, millions of vulnerable families have benefited in recent years.
Yet the logic of social entrepreneurship, even from a well-intentioned perspective, is similar to that of the colonial mentality: Affluent people will tackle the problems of the most vulnerable without necessarily involving them in solving their own challenges. From a global perspective, most social entrepreneurs still come from developed countries or the higher social classes in emerging markets.
Read the full article about social entrepreneurship by Edgard Barki, Marcus Alexandre Yshikawa Salusse, José Guilherme F. De Campos, Thomaz Novais Rocha and Ute Stephan at Stanford Social Innovation Review.