This document discusses social enterprises and their importance in achieving sustainable development goals. It notes that social enterprises provide both social and economic benefits to communities by addressing issues like job creation and access to services. However, social enterprises face challenges in obtaining financing from traditional sources that prefer conventional business models. The document argues that governments and organizations should support social enterprises through public procurement, incentives, and by showcasing their success stories to encourage social investment.

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social businesses. It is also equally important to
persuade the conventional businesses to look
beyond CSR activities and move toward social
enterprise models. This can happen if there is a
good understanding of how social investment
can produce a socially desirable impact in terms
of local-level job creation, improving school
enrolment rates, improving infant mortality, and
addressing several forms of social exclusion.
In a recent article by Niamh Goggin, published
in Pioneers Post Quarterly, she states that
“social investment will not be social unless its
people and processes reflect an ethos, values,
expertise and commitment rooted in experience
of challenges and opportunities it seeks to
address.” Of course raising funds for social
entrepreneurs is also challenging as banks and
other formal finance institutions may be more
comfortable with conventional business models.
If we as a society have to achieve SDGs,
banking organizations also need to understand
how they can offer and expand the reach of
social finance.
The biggest patron of social entrepreneurs will
remain the national and sub-national
governments. They can always incentivize the
growth of social enterprises through preferring
to purchase from these businesses which give
back to the society. They can even promulgate
public procurement laws which bind all public
sector officials involved in purchasing goods
and services on behalf of the government to do
so from these enterprises.
At the same time, the ability to take social risk
can be encouraged through showcasing success
stories in print, electronic and social media. For
example, Martha Stewart’s “The Apprentice,” a
show broadcast on National Broadcasting
Company in the US in 2005, inspired a large
number of young women to try their luck with
entrepreneurial initiatives. The donors working
in developing countries can also spur such a
movement.
Again as an example from Pakistan, the UK’s
Department of International Development
helped business incubators and accelerators to
expand their reach through a series of innovative
challenge funds. In another similar effort in
Pakistan, Fintech startups have been invited to
pitch social business ideas with the key aim of
promoting financial inclusion which, in turn,
will allow the have-nots to access affordable
financial services including savings, insurance
and credit facilities.
– Dr. Vaqar Ahmed is Joint Executive Director,
Sustainable Development Policy Institute,
Pakistan (SDPI). He is author of the book
“Pakistan Agenda for Economic Reforms,”
recently published by Oxford University
Press. Twitter: @vaqarahmed
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