Social Enterprises
A social enterprise uses business methods to solve social problems. It seeks profit and impact together. Its social mission matters as much as its bottom line.
How Social Enterprises Differ From NGOs
NGOs and social enterprises both pursue social good. Their structures differ sharply.
An NGO relies on grants and donations. A social enterprise earns revenue through sales or services. This funding model shapes everything else.
Social enterprises can be for-profit or non-profit. Legal forms vary by country. Common structures include co-operatives, mutual organizations, social businesses, benefit corporations, and community interest companies.
What unites them is intent. Profit serves the mission. It never replaces it.
Working Examples
M-KOPA Solar in Kenya sells affordable solar power to off-grid households. Customers pay in small installments through mobile money.
Aravind Eye Care System in India performs low-cost cataract surgery at scale. High patient volume keeps costs low without cutting quality.
Both models prove a point. Profitable businesses can still serve people markets usually overlook.
How Social Enterprises Get Funded
Impact investors provide most early-stage capital. Funds like Acumen and Omidyar Network accept smaller financial returns. They prioritize measurable social impact instead.
Certification systems add credibility. B Corp recognizes businesses that meet strict social and environmental standards. Over 4,000 companies across 153 industries hold this certification today.
Support networks like Ashoka and the Schwab Foundation add mentorship and connections. They help promising founders scale their models.
Critical Assessment
Social enterprises face one persistent problem: scaling.
A solution that thrives in one country often fails to transfer elsewhere. Local context shapes what works. Pilot success rarely guarantees success at scale.
Mission drift adds a second risk. Financial pressure can push a social enterprise toward wealthier customers. This shift can undermine its original purpose.
Impact measurement stays inconsistent across the sector. No standardized metrics exist for most social outcomes. Comparing results across organizations remains genuinely difficult.
RYB’s Place in This Picture
RYB is building this page into a fuller directory over time, following the same model used for our Data Organizations section.
Looking Forward
Expect this page to grow with profiles of individual social enterprises and impact investors, plus a clearer breakdown by sector — health, energy, finance, and education.
Sources
- The Global Impact Investing Network — thegiin.org