Money woes hound PH social enterprises
More than half of the country’s social enterprises —or organizations that aim to make profit out of addressing social problems— are struggling to grow because of difficulties securing capital, according to a study cofunded by the European Union.
This was one of the findings of a recent study that sought to describe the state of the country’s social enterprises, a growing yet challenged community whose objectives include improving local communities and empowering marginalized groups while gaining profit.
Titled “Reaching the Farthest First: The State of Social Enterprise in the Philippines,” the publication surveyed 206 social enterprises all over the country.
The study estimates that that there are 164,473 social enterprises in the Philippines, a good number of which sprouted in just the last 10 years. About one in five of these social enterprises is in the agriculture sector.
“A rapid assessment of the data would show that the nature of the most pressing issues for social enterprises in the Philippines are financial or monetary. This is followed by human resource concerns,” the study said.
Currently, social enterprises get funding from cash or in-kind donations, if not both.
Sixty-eight percent of respondents aim to pursue profit and social or environmental impact jointly, while the remaining 32 percent prioritize the impact over profit.
Despite the challenges, the study said that the sector still makes a “significant” impact on society, creating over 17,000 jobs last year and generating at least $21 million in net sales.
Moreover, these enterprises plan to grow next year, 62 percent of which aim to do so by attracting new customers and clients.
Sixty-two percent also said they plan to develop and launch new products, which the study said was a “commitment to innovation.”
For their growth to accelerate, the study said social enterprises needed increased support from both the government and the private sector, adding that there has yet to be a direct policy for social enterprises in the country.
The study said that social enterprises can serve as the “missing link” in underdeveloped communities, “ensuring that even those hardest-to-reach are able to benefit from the gains of the Philippines’ globalizing and emerging economy.”
The publication was executed under a project jointly funded by the European Union and the British Council.
The project—called “Strengthening Civil Society Participation in Social Enterprise Education and Development, (CSO-SEED)”—wants to measure the current size and scale of social enterprises in the country.
While CSO-SEED is focused only on the Autonomous Region in Muslim Mindanao (ARMM), the publication serves as an “important baseline reference” for the project.
