Government support for Social Entrepreneurship.pdf

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1. Government Support
for
Social Entrepreneurs

2. Introduction
The distinction of social
entrepreneurship
The need for government support
Government schemes
Challenges
Ways to improve
GoCoOp
Conclusion
Presentation Outline

3. Social entrepreneurship—the practice of responding to
market failures with transformative, financially
sustainable innovations aimed at solving social problems
—has emerged at the nexus of the public, private, and
nonprofit sectors. It is a new breed of entrepreneurship
that exhibits characteristics of nonprofits, government,
and businesses—including applying to social problem-
solving traditional, private-sector entrepreneurship’s
focus on innovation, risk-taking, and large-scale
transformation. While social entre- preneurship is not a
new phenomenon, the field has experienced enormous
growth over the past 15 years, receiving increasing
recognition from jour- nalists, philanthropists,
researchers, and policymakers as an important and
distinctive part of the nation’s social, economic, and
political landscape.
Introduction

4. Social entrepreneurship differs from traditional
organizations in several key ways. Unlike NGOs, which are
typically funded through donations and grants, social
enterprises often aim for financial sustainability through
their business operations. Moreover, they are distinct from
regular companies as their primary mission revolves
around creating positive social or environmental impact,
rather than solely maximizing profits.
The Distinction of Social
Entrepreneurship

5. Governments can create legal
structures that recognize social
enterprises, making it easier for
them to operate, attract
investment, and measure their
social impact.
Establishing standardized metrics
for social impact can help social
enterprises communicate their
achievements effectively, which can
be facilitated by government
regulations.
This includes setting up incubators,
accelerators, co-working spaces, and
networking platforms specifically
tailored for social enterprises,
fostering collaboration and
innovation within the sector.
Social enterprises often struggle
to access funding and resources.
Government initiatives such as
grants, low-interest loans, and
incubator programs can provide
critical financial support.
Governments can facilitate
market access for social
enterprises by providing
preferential procurement
opportunities, helping them
reach a broader customer base.
research institutions and
think tanks to conduct studies
and disseminate knowledge on
social entrepreneurship
NeedNeed
ForFor
GovernmentGovernment
supportsupport
ACCESS TO RESOURCES
LEGAL FRAMEWORK
MARKET ACCESS IMPACT MEASUREMENT
Research and Knowledge
Dissemination
Infrastructure and Ecosystem
Development

6. Hon’ble Finance Minister Smt. Nirmala Sitharaman as part of
the Budget Speech for FY 2019-20 proposed the idea of an
electronic fund-raising platform “Social Stock Exchange”,
under the regulatory ambit of SEBI for listing social
enterprises and voluntary organizations working for the
realization of a social welfare objective so that they can
raise capital as equity, debt or as units like a mutual fund.
Objectives of the Social Stock Exchange:
Regulated platform that brings together social
enterprises and donors
Facilitate funding and growth of social enterprises
Enabling mechanism to ensure robust standards of social
impact and financial reporting
Government Schemes
SOCIAL STOCK EXCHANGE, INDIA

7. NSDC aims to promote skill development by catalyzing
creation of large, quality and for-profit vocational institutions.
Its mandate is also to enable support system which focuses
on quality assurance, information systems and train the
trainer academies either directly or through partnerships.
NSDC acts as a catalyst in skill development by providing
funding to enterprises, companies and organizations that
provide skill training. The differentiated focus on 37 sectors
under NSDC’s purview and its understanding of their viability
will make every sector attractive to private investment.
GOVERNMENT SCHEMES
NSDC provides financial support through various skill development schemes
aimed at promoting social entrepreneurship and employment generation.
National Skill Development Corporation (NSDC)

8. Much before the onset of Make in India (2014), Action For
India (2012) has been providing a stable platform for aspiring
Social Entrepreneurs and Investors to help support human
development. It helps social enterprises with fund raising,
consulting, bespoke mentoring and early access to wide
networks. 3iPartners, a group of established Silicon Valley
entrepreneurs and executives, was formed to nurture India’s
most promising Impact Enterprises in the Agri-Tech, Health-
Tech, and Edu-Tech sectors.
GOVERNMENT SCHEMES
a flagship program of the Ministry of Rural Development launched in 2011
provides grants and financial assistance to social enterprises working in rural
areas.
Action For India

9. Mahila E-Haat, an online platform launched by the Ministry of
Women and Child Development to support women
entrepreneurs, including those running social enterprises
provides a marketplace for women to showcase and sell
their products and services. Provides an opportunity for
women entrepreneurs to use technology to showcase
products that are made/ manufactured/ sold by them.Women
can also showcase services that are provided by them
reflecting creative potential. E-Haat requires only the mobile
number as the entire business of E-Haat can be handled
through mobile by the producer.
GOVERNMENT SCHEMES
Mahila E-Haat

10. CHALLENGES
Although investment was not a top
growth plan, access to finance was
the largest stated barrier identified
by social enterprises, with 57% of the
social enterprises identifying access
to capital (debt/equity) as a
constraint.
There is a stark difference between
social enterprises and mainstream
business as only 15% of the
mainstream businesses in the World
Bank Enterprise Survey said that they
faced some form of financial
constraint
This was especially pronounced
in the North-East region, where
support institutions are scarce
and social enterprises are few.
Even more difficult is most
startups get caught in the vicious
cycle of no funding- no impact- no
new funding.

11. CREATE INCENTIVES FOR
FUNDING AND INVESTMENT
Governments can grow the social
economy by investing public funding and
by encouraging investment by
mainstream finance providers and social
investors. Mechanisms include fiscal
incentives, alleviating regulatory
barriers, leveraging tax frameworks, de-
risking private funding and developing
hybrid mechanisms that blend public and
private investment.
WAYS TO
IMPROVE

12. Expanding and enhancing research
and education on social innovation,
social enterprise and the social
economy in schools and universities
can develop both the local knowledge
and the talent pipeline.
EXPAND EDUCATION AND
RESEARCH

13. The public sector can buy goods and services from
enterprises that deliver social and environmental value.
In this way, procurement becomes a vehicle to meet other
objectives, such as reintegrating long-term unemployed
into labour markets and social and work integration of
people from excluded or vulnerable groups.
Governments can also create incentives for the private
sector to procure from the social economy
MAKE PUBLIC AND PRIVATE
PROCUREMENT CHANNELS MORE
INCLUSIVE

14. COLLECT AND MAKE VISIBLE SOCIAL IMPACT DATA
To increase the visibility of the sector,
governments are encouraged to collect statistics
on the social economy which go beyond
traditional indicators. Besides the contribution of
the social economy to economic growth and job
creation, governments should systematically
measure and present the social and environmental
impact of the social economy.

15. There have been various government efforts for financial
inclusion through bank accounts and subsidies, but access
to credit and markets continue to be tough, making it hard
for rural workers to find sustainable self-employment. With
multiple investment and funding players now in the
ecosystem, and even shows like Shark Tank supporting
social innovation, social entrepreneurs are now plugging
these gaps at a hyperlocal level by mobilising different
financial avenues to champion livelihood causes and
encourage communities. Government support for startups
along with the announcement and impending launch of the
Social Stock Exchange has paved the way for a more positive
atmosphere for social entrepreneurship in India.

16. GoCoop is India's first social marketplace for cooperatives and community-based artisans, connecting them with buyers
globally. Founded in 2012, GoCoop aims to empower artisans and cooperatives by providing them with a platform to
showcase their products, access markets, and improve their livelihoods. The company operates with a mission to
preserve traditional crafts, promote sustainable livelihoods, and foster economic inclusion in rural communities across
India.
GoCoop's innovative approach to promoting traditional crafts and empowering artisans has garnered recognition both
nationally and internationally. Through its online marketplace and supportive initiatives, GoCoop continues to make a
significant impact on the lives of artisans and cooperatives, while also fostering greater appreciation for India's rich
cultural heritage.
GoCoOp

17. National Handicrafts
Development Programme
(NHDP)
National Rural Livelihood
Mission (NRLM)
Coir Udyami Yojana
Digital India and
Make in India
GoCoop has received support
under NHDP to facilitate the
marketing and promotion of
products sold by artisans and
cooperatives on its platform.
GoCoop have collaborated with
NRLM to onboard rural artisans
and cooperatives onto its
platform, providing them with
access to a wider market and
better livelihood opportunities.
GoCoop primarily focuses on
handloom and handicraft
products, it may have still
benefited indirectly from
initiatives promoting other
traditional industries and
cooperatives.
GoCoop leveraged Digital India
along with Make in India to
enhance its online platform,
improve digital connectivity in
rural areas where artisans are
based, and facilitate e-commerce
transactions more efficiently.
Government Schemes and GOCoOp

18. CONCLUSION
In the Amrit Kaal (the 25-year period to 2047), these enthusiasts of
social causes — driven by purpose, vision, value, and ethos to
create a sizeable socioeconomic impact — can be trusted to
shoulder more responsibility and be given a significant share of
the economy.
The need of the hour is a nourishing ecosystem for social
entrepreneurs to take up programmes, bridge pandemic-induced
gaps, scale-up existing initiatives, and be part of the mainstream
response system
THANK YOU!

19. Engage and Reflect
Q1. What are some forms of financial assistance that
the government provides to social entrepreneurs?
Q2. ___ and ___ conduct studies and disseminate
knowledge on social entrepreneurship.
Q3. When was Action For India Launched? What
sectors does it primarily nurture?
Q4. How can social entrepreneurship tackle
systematic inequalities within our communities?