There’s a saying rap artists use obsessively: “If it ain’t making money, it ain’t worth it.”
Its origins date back to America, but it has taken on various forms within the country. “Mipango is about the money.” (Plans without money are just noise) Tanzanian rapper Msodoki Young Killer and ‘Kama bets on Biasra, nobody wants it (If money isn’t an issue, take a walk) A song by Kenyan rapper King Kaka.
But in the world of social entrepreneurship, business doesn’t work this way. Capitalism teaches entrepreneurs to start businesses for profit, but in social entrepreneurship, impact is more important.
As Vincent Odhiambo says, social entrepreneurship exists to right the wrongs of the market.
“Social entrepreneurs work hard to solve market failures, repair broken or crumbling systems, and demonstrate more sustainable models for building inclusive economies,” Odhiambo says.
Odhiambo is the regional director for Ashoka East Africa, part of the larger Ashoka global network of social entrepreneurs branded as change agents.
One of these change agents is Muhammad Yunus, a 2006 Nobel Peace Prize winner and renowned social entrepreneur from Bangladesh who previously visited Kenya.
The name Ashoka means “the active absence of sorrow,” he explains, inspired by the Indian emperor Ashoka, who in 3 BCE renounced violence, became tolerant, and pioneered innovations in economic development and social welfare.
Ashoka was founded in 1980 by Bill Drayton and now boasts the largest network of social entrepreneurs with 5,000 members in 96 countries, including Kenya, and in East Africa, where it has had around 90 members since 2001.
“Social entrepreneurs are not content with just giving people fish or teaching them how to fish. They will not rest until they have revolutionised fishing,” Ashoka’s founder said.
In a world where profit determines whether and what kind of business to start, social entrepreneurs flip the equation by focusing on impact. Without impact, there is no point.
But don’t you think such businesses are more like non-governmental organizations (NGOs)?
“Many social enterprises are registered as NGOs, some as foundations or trusts,” Odhiambo says.
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“The social entrepreneurship model can also be applied to traditional commercial businesses, regardless of registration system.”
He says what’s needed is to integrate an environmental, social and governance (ESG) mandate into strategy.
“For example, a customs clearance and forwarding company could decide to build an anti-counterfeit initiative that adds a new dimension to its customs clearance and forwarding operations to raise awareness of counterfeit goods,” he says. “This will have a positive impact on society in the long run.”
He points to fellow Naomi Mwaura’s transportation company, which prioritizes the needs of the most vulnerable groups, including women, in designing transportation solutions.
“Unlike traditional entrepreneurship, where success is measured by financial metrics such as revenue and profit, social entrepreneurs also need to measure and demonstrate their social impact,” he says.
This begs the question: how do entrepreneurs measure their impact?
“Measuring social impact remains one of the most challenging measurement methods, even for established global organizations, so you can imagine how challenging it can be for social entrepreneurs who don’t have the modern tools, talent and expertise to execute on this subjective endeavor,” Odhiambo says.
He cites a lack of awareness among the general public, policy makers, businesses and local charities of the sector and the unique value proposition it offers as some of the unique challenges this business model faces in mainstream markets.
When 2006 Nobel Peace Prize Laureate, Professor Muhammad Yunus, visits Kenya in 2023 as the chief guest of East Africa’s first ever Social Business Forum on Youth Entrepreneurship, he said the continent has become a victim of policy decisions that do not foster trickle-down economic growth.
As a result, Africa is lagging behind compared to other continents.
The solution, he said, was to redesign the system to provide a favourable environment for businesses that would transform lives in local communities and across the continent.
“We talked about unemployment in Africa and I think now is the time, because we don’t want to be employed. That’s the basic thing, that’s the message,” Professor Yunus said, suggesting that social entrepreneurship could be a solution to the unemployment problem.
M Odhiambo elaborates that the challenges cited above, including lack of public awareness, are why we as a society are yet to get to the point where we can overcome the world’s most pressing challenges with solutions. That is how we should be, he says.
“This is the essence of social entrepreneurship, but the challenges are many and the sector is perceived as unpromising and burdensome,” he added.
Citing the recently released report, “The State of Social Enterprise 2024,” which documented 10 million social enterprises around the world, Odhiambo said the sector is growing.
“These challenges need to be addressed if the sector is to reach its full potential, and players within the social entrepreneurship ecosystem have a responsibility to build a collaborative and supportive ecosystem and environment in which social entrepreneurs can grow and fulfill their mission of social impact,” he says.
One example of a social enterprise is sanitary napkin manufacturer Zana Africa. Founded by Megan Mukuria, the company uses locally sourced materials to make its napkins affordable.
Mukuria, a Harvard graduate, describes her journey as a social entrepreneur as a lonely one. “It’s been a very lonely journey for a long time,” she says, “but looking back, it doesn’t feel like a 25-year journey.”
She believes the world wants solutions – a key element of social enterprise – but is not patient with the process, which puts social entrepreneurs at a disadvantage.
“You’re going against the flow. What you’re doing is solving a very deep-rooted problem, but often people don’t understand it and it’s hard for them to get involved because it threatens the status quo,” she says.
Positive Exposure, under the leadership of Jane Waithera, promotes the wellbeing of people with albinism and educates their families and communities about the same.
True North is another example of a social enterprise run by renowned psychologist Lucy Muculia. Her business looks at innovative ways to integrate ex-military personnel back into society. PTSD is a major challenge for veterans.
According to the Social Enterprise Society of Kenya (Sesok), almost half (44%) of social entrepreneurs are run by women. Most of the country’s social enterprises are also young and run by young people.
Sesok estimates there are 44,000 social enterprises in the country.
Debt or equity capital is the biggest barrier for these businesses (54%), followed by grants (43%) and technical skills (16%).
