Social Entrepreneurship (SE) is the organization of a business around specific social and environmental causes, and can include both nonprofit organizations and charities and for-profit social enterprises. Social entrepreneurs differ from traditional entrepreneurs in that their main drive is to make a difference in the world or in their communities. They often have a personal connection with the causes they support, which in turn inspires their business’s mission.
While traditional businesses might measure success in terms of market share or year-over-year revenue growth, entrepreneurs running social enterprises are more likely to focus on metrics like jobs created, trees planted, or donations made to a charity that solves the problem they’ve invested in.
What is a social enterprise?
A social enterprise is a business designed around a core altruistic mission, which influences every element of how it’s managed, from product development to branding, from supply chain management to financial planning.
Social entrepreneurs often work in areas such as education, healthcare, environmental sustainability, and community development. They leverage their business acumen and creativity to develop sustainable solutions that address these issues, and they measure success not just in terms of financial profits, but also in terms of social impact.
Considered a growing field, more and more social entrepreneurs recognize the potential to create value by addressing social and environmental problems. It offers a unique opportunity to create positive change and contribute to a better world, while also building a successful and sustainable business.
Social Entrepreneurship in Saudi Arabia
Social entrepreneurship is a rapidly growing field around the world, including in the Kingdom. According to a report published by PwC, the social enterprise sector in Saudi Arabia has been growing over the past decade but it is still considered in its infancy, which presents a significant opportunity. It is estimated that financially sustainable social enterprises in Saudi Arabia could contribute an additional 2.5 percent to GDP per year and create more than 250,000 jobs by 2030.
Social entrepreneurs have a crucial role to play in achieving Saudi Arabia's Vision 2030. By focusing on sustainability and climate action, they can help to create a more resilient and equitable future for all. According to an article published by the UN, there are numerous examples of young Saudi social entrepreneurs running organizations such as Tadweem, Nabatik, and Thuwal. These social enterprises address a variety of issues, spanning environmental sustainability, climate change, and sustainable cities and communities.
Potential Solutions
There are many ways that Saudi social entrepreneurs can contribute towards achieving the 2030 Agenda and Saudi Arabia's Vision 2030. Some possible initiatives in Saudi Arabia that can help to address climate change include:
1. Developing renewable energy solutions:
Saudi Arabia is one of the largest oil-producing countries in the world, but there is also significant potential for renewable energy. Social entrepreneurs could focus on developing innovative solutions for harnessing solar or wind power, or creating more efficient energy storage systems.
2. Promoting sustainable agriculture:
Agriculture is a significant contributor to greenhouse gas emissions, but there are also many opportunities to reduce emissions through more sustainable farming practices. Social entrepreneurs could work on initiatives such as promoting organic farming methods or developing sustainable supply chains for food products.
3. Encouraging sustainable transport:
Transportation is another major contributor to emissions, but there are many ways to reduce the environmental impact of transportation. Social entrepreneurs could develop initiatives such as car-sharing schemes or promote the use of electric or hybrid vehicles.
4. Raising awareness:
Finally, one of the most important things that social entrepreneurs can do is to raise awareness about climate change and the need for action. They can use their platforms to educate the public, inspire other entrepreneurs, and encourage policy-makers to take action.
Forecasting the future
There has been a growing interest among Saudi youth in using entrepreneurship as a means to create social impact. This is reflected in the increasing number of social enterprise incubators and accelerators that have been established in the country, such as Impact Hub Riyadh, which provides support and resources to social entrepreneurs.
Despite the progress made, social entrepreneurship in Saudi Arabia is still in its early stages, with many challenges and barriers to overcome. One of the main challenges is the lack of awareness and understanding of social entrepreneurship among the wider public and potential business models and may not see the value of investing in the social enterprises.
Another challenge is the limited access to funding and resources, in particular, for early-stage social enterprises. While the government has established several funding programs, many social entrepreneurs still struggle to secure funding, which can hinder their growth and impact in the local market.
Social entrepreneurship in Saudi Arabia is a nascent but rapidly growing field that has the potential to create significant social impact in the country. While there are still challenges to be overcome, the government’s support and increasing interest among Saudis bode well for the future of social entrepreneurship in the country. As we look ahead to the coming decade, we can expect to see a vibrant and thriving social entrepreneurship ecosystem in Saudi Arabia, creating positive change and driving sustainable economic growth.
