• Service: Enterprise, Family business
  • Type: Business and industry issue
  • Date: 11/1/2012

Social entrepreneurship and the challenge of scale 

Social entrepreneurship
Over the next few weeks, I’ll be sharing insights from the 2012 Barometer of Social Entrepreneurship.

“Social entrepreneurs have demonstrated their capacity to find efficient and innovative solutions
to a wide range of environmental, social, and economic problems in both developed and developing countries.

Social entrepreneurship has a significant potential for social and economic transformation. However, it is strictly by changing scale that it can increase its impact at the macroeconomic level and contribute to the development of a more responsible and more interdependent economy.”

How social entrepreneurship fits into the economy

“The special report of this second edition of the Barometer of Social Entrepreneurship in France and worldwide is devoted to this central problem for the development of global social entrepreneurship.

The problem of change of scale arises at two different levels. First, there is the question of developing the place of social entrepreneurship in the economy by multiplying the number of existing social enterprises and by disseminating more widely their principles. For this purpose,
it is necessary for governments to be committed to social entrepreneurship.

But many other actors have a role to play as well, especially the financers of the economy (banks and investors) as well as schools and universities which train tomorrow’s leaders and entrepreneurs.”

The challenges of developing social enterprises

“The change of scale of social enterprises also takes place through the development of social enterprises themselves, as they are faced with multiple challenges in their process of growth:

  • How are social mission and economic viability accommodated?
  • How can their impact be increased and measured?
  • How can appropriate governance models be set up and build resourceful partnerships with a multitude of public and private actors?”

How would you tackle these challenges in your own business?

Tackle challenges

Christophe Bernard

Christophe Bernard
I am a KPMG partner based in the French firm’s Paris office, responsible for encouraging the growth of our firms’ middle markets practice across Europe, Middle East and Africa, a majority of that market comprises of family businesses.

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