ePaper_2nd Edition_November 16, 2016

Feature
17
WEDNESDAY, NOVEMBER 16, 2016
DT
Social enterprise:
A growing sector in need of support
• Abu Fateh Mohammed
Zakaria
Bangladesh has been a global
pioneer in social enterprise and
there is a long-standing tradition
of commercial models delivering
socially minded services and
goods but to date there has been
little quantitative evidence to draw
upon. Organisations such as BRAC
and Grameen are considered to
be household names not only in
Bangladesh, but all over the world.
However, the social enterprise
eco-system in Bangladesh needs
proper nurturing in terms of
knowledge, skill, finance and a
unique policy framework for it to
really flourish.
In an attempt to truly
understand the impact and
scale of social enterprises in
Bangladesh, and to identify the
barriers hindering the growth of
this sector, the British Council
conducted comprehensive
studies on the social enterprise
landscape in Bangladesh. The
study yielded two reports – ‘The
State of Social Enterprise in
Bangladesh’ and ‘Social Enterprise
Policy Landscape in Bangladesh’.
The reports find that social
enterprise is growing and is
creating jobs for disadvantaged
groups, empowering women, and
addressing social exclusion.
Social enterprises are
businesses which trade for a social
purpose, re-invest surpluses
into their social objective, and
make themselves accountable for
their actions, rather than simply
maximising profits for owners and
shareholders.
The study generated thoughtprovoking
findings for the mass
and policy makers alike. For
instance, it found that a third of
the respondents of the survey
work in the education sector.
Although 39% of the enterprises
working in this sector are led by
male compared to a meagre 6%
by women, a fifth of all social
enterprises were found have been
led by women – significantly higher
than the scenario in mainstream
business (5%). Women in social
enterprises make up 41% of the
full-time equivalent workforce,
which is more than double the
proportion of female participation
in the country’s general workforce.
Needless to say, social enterprises
have been playing a key role in
women empowerment from
underneath the veil.
Bangladeshi social enterprises
are young and so are their leaders.
The study found that 77% of the
social enterprises in Bangladesh
are six years old in average,
established between 2009 and
2015. Most of these enterprises are
led by youth who are under 35,
which indicates that the youth are
taking the mantle of leadership
to make a positive change in
the society. Bangladeshi social
enterprises are generating an
average annual turnover of Tk2.1
million and nearly three-quarters
of the social enterprises expect a
substantial increase in turnover in
the next fiscal year.
One of the most important
findings of the study is that 90%
of the social enterprises are
currently working with individuals
from socially and economically
disadvantaged communities,
creating employment
opportunities especially for the
disadvantaged groups – supporting
and empowering the most
vulnerable members of our society.
However, the study highlights
some factors that are hindering
smooth growth of the highly
promising sector. Lack of technical
skills is seen as the biggest
barrier to growth, followed by
access to debt finance, lack of
social enterprise awareness and
cash flow constraints. A lack of
understanding of social enterprise
is seen as a significant barrier to
growth. The study shows that
donations and grants are the most
common sources of funding, with
few social enterprises securing
concessional loans or equity. The
study also found that there is no
government approved definition
and no nationally recognised
definition of social enterprise in
Bangladesh. Moreover, there is no
specific legal status in Bangladesh
which recognise their joint focus
on impact and sustainability or
profit. This indicates that the
sector is in desperate need of
greater attention and support from
the policy-makers.
Bangladesh has enjoyed
economic growth above six per
cent over the last decade and
has a thriving start-up sector.
The consistent economic growth
of Bangladesh and its rising
geopolitical importance is going
to sustain only if the women, the
youth, and the underprivileged
are afforded opportunities
to actively participate in the
workforce. Social enterprises, as
the study reveals, can be among
the major sectors providing that
opportunity. However, the sector
is in strong need of timely support
and recognition, and its potential
requires acknowledgement from
the policy makers. •
Osama among the 100 visionary leaders under 30 by Real
Leaders magazine
CEOs in 130 countries - members
of The Young Presidents
Organization (YPO). The
magazine is also distributed
at key global conferences of
significance.
Osama and Makshud Manik
co-founded Youth Opportunities
with the goal of tackling
unemployment.
Youth Opportunities is
a global platform aimed
at empowering youth by
connecting local youth to
their global counterparts,
while bringing opportunity
providers closer to the seekers.
Through this platform, Youth
Opportunities share latest and
impactful opportunities with
millions of youth for free across
the globe.
Osama has previously
received the Queen’s Young
Leaders 2016 Award from
Bangladesh. He was also listed
by Forbes as one of 30 Under 30
Social Entrepreneurs in Asia.
He has been engaged in
numerous volunteering activities
in various sectors in national and
international organisations in the
last six years. He is also a co-host
of Teen Tekka, the first radio
show in Bangladesh dedicated to
teenagers.
Studying to be a dentist,
Osama’s vision is to provide the
opportunities for young people
that will help them explore, face
their challenges and excel in
their careers. •
• Feature Desk
Real Leaders magazine has
named Osama Bin Noor in their
list of 100 Visionary Leaders
Under 30. He is the only
Bangladeshi selected for this list
by Real Leaders magazine.
Each year magazine produces
a Real Leaders 100 list and this
year, the magazine is to focus
on Young Real Leaders - people
under 30 making a positive
difference in the world.
Real Leaders magazine is sold
in Whole Foods stores across
the US and is also distributed to
24,000 of the world’s leading