On April 18, 2024, the Schwab Foundation for Social Entrepreneurship, in partnership with the World Economic Forum published a comprehensive analysis of the global social enterprise landscape – The State of Social Enterprise: A Review of Global Data 2013–2023.

Key insights from the report on social enterprises around the world

Global recognition and economic impact:

Social enterprises have gained substantial recognition globally and are now considered significant economic forces. They are crucial in addressing pressing social, environmental, and economic issues.

There are an estimated 10 million social enterprises globally, generating around $2 trillion in revenue annually and creating nearly 200 million jobs.

This makes the social enterprise sector larger than the $1.79 trillion apparel industry and nearly twice the size of the $1.01 trillion advertising industry.

Social enterprise accounts for around 2% of global GDP and 3% of all businesses.

Gender and leadership:

Social enterprises are notable for their leadership diversity, with one in two social enterprises globally led by women, compared to one in five for conventional enterprises. This sector is also at the forefront of bridging the gender gap .

Sector diversity and SDG contribution:

Although they are still underrecognized, social enterprises have emerged as pivotal actors able to develop highly innovative solutions to critical social and environmental challenges – and significantly accelerate progress towards the SDGs.

Social enterprises operate across various industries, including agriculture, information technology, healthcare, and financial services. They contribute significantly to all the United Nations Sustainable Development Goals (SDGs), especially those focused on health, education, climate, and job creation, thereby reducing poverty and inequality .

Prioritizing purpose over profit, social enterprises are a critical driver of inclusive wealth, sustainable development and economic resilience.

Barriers faced by social enterprises:

While conditions vary from country to country, social enterprises worldwide typically face the following barriers:

• limited access to finance
• lack of public awareness
• lack of government support
• inadequate legal and/or fiscal framework
• limited access to procurement processes

Governments and private entities can play a pivotal role by implementing inclusive procurement policies that prioritize the social and environmental impact alongside economic considerations.

Data gaps:

The report also highlights gaps in data availability and quality, the comparability of data across countries, and difficulties in quantifying social and environmental value creation. Addressing these challenges is essential for providing a clearer understanding of the global state of social enterprises and creating better enabling conditions for their growth .

Call to action:

Robust data on social enterprise is critical to inform policy-makers on the design of policies and the most effective allocation of resources.

The report calls for a stronger, more reliable, and more frequent data infrastructure to support social enterprises. It urges collaboration among governments, international organizations, and the social enterprise ecosystem to invest in comprehensive data collection and establish clear data-collection standards. This collaborative approach is vital for driving positive social and environmental change and for informing policy-makers on the design of policies and the most effective allocation of resources.

In summary, the report emphasizes the transformative potential of social enterprises in addressing global challenges and calls for enhanced efforts to support these enterprises through improved data collection, policy support, and investment in their growth and development.

By championing these enterprises and promoting an enabling environment for their growth, we can unlock new pathways for economic development and social progress. Policy-makers, business leaders and ecosystem actors can draw inspiration from the achievements of social enterprises and collaborate to build a future in which business serves as a force for good, benefitting people and the planet alike.

Hilde Schwab, Chairperson and Co-Founder, Schwab Foundation for Social Entrepreneurship & Brigitte Mohn, Member of the Executive Board, Bertelsmann Stiftung

Source: https://www3.weforum.org/docs/WEF_The_State_of_Social_Enterprise_2024.pdf