Impact over Profits: How Social Entrepreneurship Can Transform the MENA Region
From saving the environment to micro-lending, humanitarian aid to sustainable living, social entrepreneurs are changing the world for the better. Amidst the backdrop of global instability, climate change, and growing poverty rates, social entrepreneurs are needed now more than ever to channel their passion for change into viable enterprises leveraging the power of the corporate world in the process.
What is Social Entrepreneurship?
Social entrepreneurship refers to any entrepreneurial activity that is motivated by impact rather than profits. And while a social enterprise may be built as a for-profit business, it can also function as a non-profit, all depending on how the entrepreneur can effectively solve societal issues while delivering a measurable impact.
Social Entrepreneurship and Systemic Change
Change is at the heart of any social enterprise. But for a social enterprise to achieve sustainability and deliver on its vision, cross-sector collaborations are key. The World Bank reports that social entrepreneurs must establish partnerships and collaborate with stakeholders across the private and public sectors to achieve viability in terms of securing funding and establishing partnerships for impact and the platform to scale their efforts. Establishing collaborations, or building strategic coalitions will help social enterprises engage with the key stakeholders in their local ecosystems,
Growing Instability Shakes Up the MENA region
In what is considered one of the most volatile regions in the world, the youth are affected the most. At 25 percent, the region’s youth suffer from some of the highest rates of unemployment in the world. The International Monetary Fund (IMF) reports that a few of the underlying causes include skill mismatch between educational attainment and labor market needs, large public sectors, and ongoing social and political turmoil.
Amidst this landscape, social entrepreneurship introduces the region with an innovative way to help spur employment, while addressing major socioeconomic and environmental issues along the way. In this respect, adopting a cross-sectoral approach to incentivize the youth to embrace social entrepreneurship, and launch profitable businesses that are built to address a myriad of problems their local or regional communities face while promoting impact, is a positive step in the right direction.
How to Initiate Change?
According to the International Labour Organization (ILO), the social and economic needs of thousands are not being met across the developing world. This calls for strategies that promote inclusive governance within the public sector and market development within the private.
And to spur a new generation of socially-minded entrepreneurs, promoting a culture that values community development, promoting trust and interconnectivity amongst public and private sector stakeholders, and incentives that promote civic engagement are key.
Promoting a culture that values community well-being above all, is the first step. Further trust, interconnectivity and initiatives that encourage inclusive civic engagement are key to fostering a new generation of socially-conscious entrepreneurs.
Education is also essential for instilling a sense of community responsibility and accountability amongst the youth. In addition to equipping them with the practical and technical skills as well as mindset needed to embrace entrepreneurship, and find innovative solutions to issues affecting their local communities, social or otherwise.
Social Entrepreneurs Impacting the Region
While there remains much to be said about social entrepreneurship in the MENA region, there several enterprises that are transforming their communities for the better. The UAE government, for example, has recently launched the city-wide initiative, Smart City Dubai, which aims to transform Dubai into one of the first technologically driven, eco-friendly cities in the world. Not only is this initiative inspiring people across the region to embrace the power of social enterprise, but it stresses the importance of the public sector in promoting entrepreneurship, via effective policymaking and incentives.
Founded in 1980, the non-profit Ashoka has been at the forefront of social entrepreneurship for the past three decades. The organization selects leading social entrepreneurs working towards equitable change in their societies, to become fellows within the global Ashoka community. Ashoka fellows then receive access to an extensive network of like-minded peers, a stipend, increased visibility, and opportunities to accelerate their impact. Although based in the United States, Ashoka’s reach is impressive, with over 3,500 fellows from over 90 countries worldwide.
Putting the spotlight on the MENA region, we turn to Palestine based BabyFist. Founded by Yasmeen Mjalli in 2017, BabyFist is one of the country’s first ‘socially conscious fashion brands that exclusively focus on MENA women’s rights and donates 10 percent of proceeds to social impact projects.’ With their signature ‘Not your Habibti’ line, BabyFist opened the doors for Palestinians everywhere to share their stories of sexual harassment and ultimately reclaim their space while inspiring meaningful change. Beyond that, BabyFist ‘manufactures its apparel with small and family-run businesses across the West Bank and Gaza.
Impact over Profits
Focusing on impact rather than profits, social entrepreneurship provides a gateway for individuals everywhere to transform their commitment to change into viable enterprises. And the MENA region needs to start embracing youth-led social enterprises, fueled by smart funding from philanthropists and the corporate world.
To this end, instilling a sense of social responsibility, and leveraging cross-sector collaborations will help foster a future generation of socially conscious self-starters working to create a more equitable and smart future for all. Ultimately, it is not always about the most profitable solutions, but the smart and socially conscious ones that deliver both on profit and impact.