Public and private leaders may develop a social economy with influential firms

How public and commercial sector leaders can develop a social economy by collaborating with organisations that make a difference in the world

The gaps that are left by formal systems can be filled by social innovators, who have an important part to play in our economies of the future.

Social enterprises are being subjected to pressures and demands that have never been seen before; nonetheless, in spite of these stresses, they continue to remain robust.

It is possible to alter global progress toward the UN's Sustainable Development Goals by increasing corporate and public sector engagement in the social entrepreneurship ecosystem.

It's amazing how much can change in just two years, especially when our future is on the line. Even while the COVID-19 pandemic has caused immense economic and social harm all over the world, it has also inspired an extraordinary blooming of innovative answers, as well as a new spirit of collaboration and unconventional partnerships that bring optimism to the situation. One example of this type of project is the World Economic Forum's Global Alliance for Social Entrepreneurship, which was formerly known as the COVID Response Alliance.

What began as a collective response to support social entrepreneurs working on the frontlines of the crisis to protect the world's most vulnerable [people, communities, and ecosystems] has evolved into a powerful public-private partnership of more than one hundred leaders from government, business, philanthropy, and academia with the potential to drive transformation at the speed and scale needed to rebuild and're-steer' towards a more just and sustainable world. This partnership has the potential to drive transformation at the speed and scale needed to rebuild

A essential but often ignored factor in the process of transformation

For a long time, social entrepreneurs have played a crucial part in the process of driving transformation. We turn to them for forward-thinking business models and ways of conducting operations that pave the way toward a future that is more sustainable and equitable. Social enterprises are sometimes underappreciated as a driving force for social transformation because of their size and scope, but their influence has grown to the point where it is increasingly difficult to ignore. They have shown that they are capable of moving quickly and facilitating teamwork, and they have stepped up as first responders to fill important gaps left by swamped formal systems.

In the year 2020, at a time when the global health crisis was at its worst and entire economies were locked down, a record number of 12,000 social enterprises were founded in the United Kingdom alone. 47 percent of them were run by women, 31 percent had directors who were people of colour, Asian, or from a minority ethnicity, and 22 percent were located in the poorest sections of the country. In addition to being a powerful manifestation of social justice, they also proved to be financially resilient. Forty-four percent of them reported increasing revenue flows, but just 18 percent of commercially-minded enterprises over the same time period reported increased revenue flows.

The establishment of the building blocks for a thriving social economy. Approximately 75 percent of social enterprises link their impact measurements to the Sustainable Development Goals (SDGs) set forth by the United Nations, with issues of poverty, gender equity, and decent work being the primary areas of concentration. Social entrepreneurs seek to strike a balance between sustainable business methods and concerns regarding social justice. In comparison, only 38 percent of traditional businesses link their effect with the Sustainable Development Goals (SDGs). In addition, international organisations such as the United Nations Development Program (UNDP) are working to bring together key actors through a platform called the Sustainable Finance Hub. This will allow governments, the private sector, and international financial institutions to accelerate financing and measure its impact toward achieving the sustainable development goals (SDGs).

If we want to recover from the current crises, rebuild more quickly, and lay the foundations for greater resilience over the longer term, we need to work together to deliberately and determinedly strengthen the ecosystem for social innovation. Only then can we hope to recover from the current crises, rebuild more quickly, and lay the foundations for greater resilience over the longer term. Anything less than that would be equivalent to gambling with our future.