The empowerment and boosting of social entrepreneurship; key to achieving the Sustainable Development Goals in Spain.
Madrid – January 22nd 2020. Social entrepreneurship has become key in achieving the Sustainable Development Goals (SDG´s). This is the main argument made in the joint report on how to find a solution for the major global issues, carried out by the PwC Foundation and Ashoka. This report highlights the importance of the role social entrepreneurship plays, which has risen from the combination of traditional assistance and corporate social responsibility – whose objective continues to be the maximization of profit.
Main challenges in social entrepreneurship in Spain
Recent reports published by the UN regarding the 2030 Agenda have risen the annual investment necessary to reach the SDGS to 6 thousand million USD, which leaves a deficit of 2600 million USD to be covered by the private sector, on a global scale.
In this context, social entrepreneurship comes also as a strategic solution for the reduction of said deficit. However, in order for this type of entrepreneurship to reach its full potential and truly make an impact, several aspects need to be improved. Thus, the report goes on to analyze in detail the main challenges regarding social entrepreneurship in Spain. One of which is the limited awareness of said type of entrepreneurship in Spain, and more particularly the difficulty in obtaining financial resources, thus limiting its potential systemic impact.
- Limited potential in systemic impact
This sector is formed by numerous small initiatives, with local outlook and great difficulty to scale up their businesses.
- Limited Awareness
There is a lack of awareness of the potential utility of social entrepreneurship among the general population.
- Large difficulty in obtaining investment/financing
This is especially true for the initial phases of the project, due to risk aversion, lack of support and partnership from the public sector and lack of patient capital.
- Absence of social entrepreneurs.
Due to the small number of entities capable of providing resources and financial assistance, and an inability to attract and retain qualified talent.
- Limited use and development of methodologies commonly accepted and used to measure systemic impact
- Need for a regulatory framework and a favorable public policy towards the social entrepreneurship industry.
These conclusions have been reached after numerous meetings between the tow organizations, as well as interviews with more than 25 experts. They all agreed on the previous 6 challenges as the roadblock to empowering and propelling social entrepreneurship to its full potential.
Moreover, the report arises the issue of annual global investment deficit, (considering CAPEX investment not OPEX), and how it can be found especially in developing countries.
Amongst of all possible areas of action, the report highlights those related to energy and climate change as those with the highest probability of achieving the goal of a reduction in global deficit of 2600 million USD.
A solid and collaborative network that propels social entrepreneurship
This network allows and facilitates social entrepreneurships potential growth. This network should span from family and friends, to universities and government agencies, including as well agents from both the public and private sector.
Moreover, whilst the vocational desire of the entrepreneur of generating a positive social impact is important, there must be an identifiable systemic problem and a solution to it. Said solution must then generate a change in society, ultimately altering the systemic problem that caused the issue.
The report mentions successful stories in the organizations have been involved, and the new forms of financing that have surfaced through the years; CSR or Venture Philanthropy for example. Additionally, some of these success stories include projects such as Bridge for Billions, a platform that brings support to entrepreneurs regardless of their background and nationality; Women´s Link Worldwide, dedicated to maintaining women´s rights in at risk situations through legal strategies. There is also Latitude, an entity which focused on labor rights in the sustainable clothing industry, or La Exclusiva, which provides the rural population with an adapted logistical service.