Issues faced by Social Enterprises.

Category : Social enterprise

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Posted On : 26th, September 2017

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Social enterprise

Issues faced by Social Enterprises.

26th, September 2017    -    Social enterprise

India is ranked second best nation in terms of Startup activation in the world. In the last decade we have seen increase in the start-ups who are ventured to solve the real problems with the innovative concepts. Among these sectors, Ecommerce was the poster boy market. The boom came when Flikart raised billion dollars in funding and there is a mushroom growth in the sectors where many Start-ups took birth.

Technology is used to be the innovative force in all the sectors and attracted many players in to the field. The result is in India every month more than 1000 new start-ups comes to the market with niche product or new business model.

The same development we cannot see in the social sector. Social sector is very large and neglected domain by the society itself. In societal sector only energy and health sectors has seen some activities and attracted investors in the recent years.

There are many other sub sectors such as poverty, job , education etc. still has been neglected. These sectors fail to attract the support from ecosystem. But the opportunity is large.

The scale of social problem is massive in India and no single organisation can solve these problems. Earlier only NGOs and Government agencies were working in these sector is now changing. Now the young minds that raised their concern over the societal problem has come out with the new business models and trying to solve the problem in a better way.

But there are some challenges these new breed social enterprise are facing.

  • No proper ecosystem to support for Startup from social sectors
  • Less awareness about social business sectors in the market
  • Lack of interest in creating the awareness about the product /services
  • Social Taboo is a major drawback
  • Lack of support from Government and the policies are not supportive to the social business.
  • Very less number of investors to would be interested in investing in the sector
  • Very less institutional support for the growth.
  • Huge gap is demand and supply of the product/ services
  • People’s mind set has to be changed and need to educate them about the importance

The social entrepreneurship movement is picking up the momentum. There is a huge demand for the social Startups and, with the proper structural design it can create big impact of society and also can create economic sustainability.  

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