Excerpt Six From A Recent Interview With University College London | State Of Social Enterprises Ecosystems In Kenya
Earlier this year, The Youth Café was interviewed by Eliana Summer-Galai, a Masters student with the Institute of Global Prosperity at University College London (UCL). This interview was to provide insight into her research on the Kenyan Social Enterprise Ecosystem. The research explores the actors across the ecosystem, looking at stakeholders from four stages of the entrepreneurial life cycle (entrepreneurial education, idea generation, funding, and growth), and the opportunities and challenges for local social entrepreneurs.
The questions asked and our responses form a series of 8 blog posts dissecting important issues with regard to the Social Enterprise Ecosystem in Kenya. This is the sixth post of the series on How do you think the SEE could/ should be strengthened?
The Social Enterprise Ecosystem could be strengthened by improving the legal and regulatory framework to provide clarity and pave the path for targeted support policies to be implemented. Social Enterprise Ecosystem significance is sometimes exaggerated, and social companies can thrive even without a formal legal structure. However, in countries where there is a lack of a legal framework, social companies sometimes struggle to be recognized as double-bottom-line businesses. Governments, on the other hand, do not always need to reinvent the wheel; in many cases, it is viable to adjust existing legislation rather than starting from scratch.
Secondly, by engaging in training and research for both policymakers and social entrepreneurs, Social Enterprise Ecosystem stakeholders require development of skills and capacities. This is best accomplished in collaboration. The most efficient way to design suitable policies for social businesses is for the government and the Social Enterprise sector to work together. Working horizontally across silos and vertically across layers of government is part of the process, as is involving relevant stakeholders, such as social entrepreneurship organizations. This approach works at various levels worldwide, national, regional, and local to eliminate information gaps and transaction costs, resulting in a more consistent and effective policy.
Moreover, by improving finance accessibility to entrepreneurs, market, non-market, and non-monetary financial sources are all used by social companies. Debt, equity, quasi-equity, and guarantees, as well as performance-related instruments like social impact bonds, are all part of the social business finance environment, which is continually changing. Governments' roles are evolving from provider to catalyst, although in the short and medium-term, government funding may be essential to help social entrepreneurs become self-sustaining. They can assist by providing loan guarantees; tax breaks for private investors, and forming partnerships with social-financial intermediaries and investors.
Additionally, by having business support structures with unique needs that are distinct from those of all other firms. This supports the idea of a "braided" support system, in which all business support organizations are aware of social entrepreneurship and can correctly respond to early inquiries. More situations that are complicated are then referred to a system of expert advisers. The new types of business support structures that are emerging, such as hubs and incubators, need to be spread and supported.
Lastly, by enhancing managerial skills, in particular, work on public procurement, which accounts for 19% of national spending, enabling access to markets that assure a level playing field. The amended European Union public procurement law provides municipalities and regions with significant benefits by allowing them to focus on quality and use their purchasing power to help them achieve their policy goals.
The Youth Café works with young men and women around Africa as a trailblazer in advancing youth-led approaches toward achieving sustainable development, social equity, innovative solutions, community resilience and transformative change.
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