{"id":964,"date":"2024-12-13T14:29:30","date_gmt":"2024-12-13T06:29:30","guid":{"rendered":"http:\/\/jointings.org\/eng\/?p=964"},"modified":"2024-12-17T13:05:06","modified_gmt":"2024-12-17T05:05:06","slug":"10-million-enterprises-putting-people-and-planet-first","status":"publish","type":"post","link":"https:\/\/jointings.org\/eng\/archives\/964","title":{"rendered":"10 Million Enterprises Putting People and Planet First"},"content":{"rendered":"

\u3010\u793e\u4f1a\u4f01\u4e1a\u3011| Social Enterprise<\/span><\/strong><\/a><\/strong><\/p>\n

World Economic Forum Annual Meeting, Jan 18, 2024<\/span><\/strong><\/strong><\/p>\n

  • New data suggests over 10 million enterprises put purpose before profit, tackling pressing issues like climate change and poverty.<\/li>\n
  • These social enterprises account for $2 trillion in annual turnover, creating 200 million jobs.<\/li>\n
  • The Corporate Social Innovation Compass launched at Davos shows how companies can unlock the potential of social innovation for their business.<\/li>\n

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    A first-in-kind research by the Schwab Foundation\u2019s Global Alliance for Social Entrepreneurship finds that there are approximately 10 million social enterprises worldwide, which collectively generate around $2 trillion in annual revenues,\u00a0creating over 200 million jobs<\/a>. The sector now outranks other mainstream industries by annual revenue, such as\u00a0telecom<\/a> and\u00a0apparel<\/a>. Moreover, social enterprises align their missions with the Sustainable Development Goals (SDGs), notably in creating decent work, driving climate action and reducing poverty and inequalities.<\/p>\n<\/div>\n

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    Social enterprises, which make up 3% of all businesses globally, stand out from traditional businesses by placing a strong emphasis on creating social and environmental value in addition to economic value. Unlike conventional nonprofit organizations, social enterprises are self-sustaining through their business activities. They prioritize social impact over financial returns and reinvest their profits back into their mission.<\/p>\n<\/div>\n

    What\u2019s equally striking is the leadership of these enterprises.\u00a0Half of the social enterprises are led by women<\/a>, compared to a mere\u00a020% of conventional businesses.<\/a> It underscores the inherent inclusivity and diversity ingrained within these ventures, both in their structure and goals.<\/p>\n

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    Impacting the lives of millions<\/span><\/h2>\n<\/div>\n
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    Besides the significant economic relevance of social enterprises, they positively impact the lives of millions, from rural villages in Africa to megacities in Asia and Latin America to underprivileged parts of North America and Europe.<\/p>\n<\/div>\n

    According to\u00a0data by the Schwab Foundation for Social Entrepreneurship<\/a> tracking a global community of over 470 leading social entrepreneurs, these enterprises alone have already directly impacted more than 891 million lives over the past 25 years.<\/p>\n

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    Patagonia and SEKEM are prime examples of the power of social enterprise.<\/p>\n<\/div>\n

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    Patagonia<\/a> demonstrates how a company can prioritize environmental and social impact alongside profitability. While committed to sustainability and fair labour practices, Patagonia\u2019s revenue has been consistently growing throughout the years. The company has an estimated value of about $3 billion and brings in $100 million in revenue annually. All\u00a0profits are now going<\/a> to a specially designed trust and nonprofit organization to combat climate change and protect undeveloped land around the globe.<\/p>\n<\/div>\n

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    SEKEM<\/a> was established in 1977 as a farm operation, reclaiming 170 acres of desert on the outskirts of Cairo. It aims to facilitate the transition of 40,000 smallholder farmers to organic and biodynamic farming, producing organic foods, herbal teas, medicines and sustainable cotton. Through concerted efforts, SEKEM cultivates a future where sustainability isn\u2019t a lofty goal but a tangible reality.<\/p>\n<\/div>\n

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    Generating revenues of $23 million in 2022, it also generated 53,705 end-of-life\u00a0carbon credits<\/a> along with 2,500 farmers and SEKEM farms, competing as an industry leader in the Middle East\u2019s herbal and organic foods and medicine sector.<\/p>\n

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    Essential support for social enterprises<\/span><\/strong><\/h2>\n<\/div>\n
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    Despite the significant contribution of social enterprise both in economic and impact terms, they are underestimated and underrepresented. In April 2023, the United Nations General Assembly adopted the first\u00a0Resolution on the Social and Solidarity Economy<\/a> to highlight the contribution of cooperatives, social enterprises and other social economy organizations to realizing the SDGs. Yet, only\u00a0one in five countries<\/a> has legal structures or specific legislation to support social enterprises.<\/p>\n<\/div>\n

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    Movements such as\u00a0Catalyst 2030<\/a> are working with social entrepreneurs worldwide to advocate for better policies to support the social economy. For example, last November, the Schwab Foundation and Catalyst 2030 Brazil co-hosted a high-level roundtable <\/a>at the Ministry of Development, Industry, Commerce and Services in Brasilia, discussing actions to unlock the social impact economy in Brazil alongside the launch of the \u201cEnimpacto\u201d presidential decree to invest in and advance its impact in the country.<\/p>\n<\/div>\n<\/div>\n

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    Besides the lack of legal recognition in many countries, social enterprises also face a significant funding gap of $1.13 trillion<\/a>. To bridge this gap, private sector engagement is crucial. To further mobilize private sector support for the social economy, the Schwab Foundation\u2019s Global Alliance for Social Entrepreneurship, in partnership with Deloitte, has launched the \u201cCorporate Social Innovation Compass<\/a>\u201d developed with the support of over 100 members of the Global Alliance. This framework guides companies in partnering with social entrepreneurs, presenting over 10 engagement mechanisms and tangible case studies illustrating the business benefits of such engagements.<\/p>\n<\/div>\n

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    Moreover, initiatives like\u00a0People and Planet First<\/a>, launched by the Social Enterprise World Forum in 2023, aim to create a shared identity for social enterprises and encourage consumers, businesses and governments to purchase from these entities.<\/p>\n<\/div>\n

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    These actions are essential to help increase the recognition and contribution of social enterprises towards sustainable development. By providing greater visibility, policy support and engagement from the private sector, social enterprises can transition from being the world\u2019s best-kept secret to becoming trailblazers of an inclusive and sustainable economy.<\/p>\n<\/div>\n

    (This article is part of:World Economic Forum Annual Meeting<\/a>)<\/em><\/p>\n

    Related:<\/strong><\/h3>\n