How Can We Better Support Social Entrepreneurs to Improve Service Delivery?

A mobile health solution in Kenya that has given 1,000 mothers access to high-quality diagnostics and medical advice. An off-grid energy solution in Uganda that has brought clean energy to 100 rural developments. A sanitation center in South Africa that has improved hygiene for more than 2,000 families living in urban slums.

All these impactful solutions were implemented by social enterprises (SEs)—a new breed of organizations that fall between the traditional public sector social objective and the private sector revenue objective. SEs are differentiated by their solid presence and understanding of local communities and their flexibility to experiment and adapt to changing contexts.

Social Enterprises: How They Fit and Thrive

These few examples of innovative solutions demonstrate how South Asia and Africa are increasingly becoming a dynamic regional market for SEs, to fill big gaps in social services provision for the extreme poor and underserved populations. SEs have increased their presence and reach every year, particularly in Eastern and Southern Africa, with vibrant markets in South Africa, Kenya, and Uganda leading the way.

Yet, while inspiring success stories exist, widespread scale, replication and integration within the wider network of public and private sector delivery have not yet been achieved across the region and within countries. SEs face multiple challenges that relate to the under-developed ecosystems within which they operate.

So, how can we help? How can we better understand how SE ecosystems develop to support social entrepreneurs? How can we improve national and sectoral support ecosystems? And how can SEs learn from ecosystems in other countries to improve their own?

With all of these questions in mind, the Social Enterprise Innovation team at the World Bank Group developed an SE ecosystem diagnostic tool. The tool combines different methodologies found in the literature to create an exhaustive review of the SE ecosystem: demand by the target population, supply of services, the SE situation at the heart of the model, and four factors that influence their ability to operate effectively and scale up.

Ecosystem Factors for Effectiveness and Scaling Up

The ecosystem framework guides analysis at all levels: country, service delivery sector and service delivery subsector. The team aims for the framework to help practitioners, policymakers and social entrepreneurs to:

• Better understand the sector landscape and the potential role and impact of SEs within it
• Analyze inter-relations between actors and the importance of partnerships for results
• Examine best practices from ongoing initiatives, with early evidence of what is and isn’t working
• Review short-, medium- and long-term results of projects in seven African countries to improve SE effectiveness and added value
• Make evidence-based decisions on priorities and interventions to maximize resources
• Benchmark ecosystem performance against other countries

Understanding the immense potential for SEs and creating an enabling environment for them to thrive could supplement public and private service delivery, bringing critical social services to the last mile.