Role of NGOs & Other Organizations

Role of NGOs and Other Organizations

Social Entrepreneurship

                It refers to a business venture where the entrepreneur’s main motive is to provide social services at low cost to the needy as opposed to making a profit.

Eg: Grameen Bank of Mohammad Yunus in Bangladesh

Potential of Social Entrepreneurship

Provision of Social Services: A financially sustainable social enterprise model can be an invaluable asset in ensuring the provision of social services in untouched areas of the country through low-cost innovative solutions.

Eg: Teach for India foundation’s work in providing education to children in remote regions of the country

Correcting Gender Hierarchy: Social enterprises have time and again demonstrated their ability to emancipate women economically and in turn enhance their social position within and outside households.

Eg: Kathkatha that helps empower women and children living in brothels by providing them with an alternate source of livelihoods

Establishing Forward and Backward Linkages: Social enterprises act as bridges linking producers of traditional art and craft industries to global markets and supply chain. They also function as channels for raw materials for local product manufacture.

Eg: Hastashilpi Gurukul

Challenges to Social Entrepreneurship

Access to Credit: Due to their narrow profit margins, social entrepreneurs have a hard time gaining access to formal credit. This compromises quality and coverage of service delivery

Lack of Expertise: Social enterprises are formed by a few individuals who come together to give effect to an idea. They may not have the requisite expertise to effectuate the same efficiently.

Weak Organization: The informal nature of organization given how loosely knit they are can be detrimental to the stability of social enterprises

Way Forward

Handholding Support: Social entrepreneurs can be provided handholding support in initial stages until they acquire proficiency in their area of entrepreneurship

Incubators and PPP: Social enterprises that offer feasible ideas should be provided financial incentives in the form of taxes and a sustainable market financing model should be built up that is not merely dependent on charity alone

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