Social Enterprise

The Importance of Social Enterprise in Developing Countries

In all countries, social enterprise is a valuable business model, which provides help and support to the local communities within those countries. Social entrepreneurs are vital assets to society, as they create companies solely designed to help others and make a difference in various areas.

It is a model that doesn’t rely on the government to take action, it simply stands for ordinary people of the community taking the matters into their own hands. Funding, by any means, is always much appreciated.

Understanding the role of social enterprise, it is clear to understand how crucial it is to any local community in any country. It is perhaps even more important to grow this force and maintain in developing countries.

In a developing country, often the resources are highly lacking, and there is a struggle to gain a government that the country needs in order to encourage and support growth. Developing countries need to acknowledge how helpful social business could be in tackling these issues and problems.

Many developing countries have started encouraging social enterprise, and realizing that these businesses could be the answer for supporting the country and helping.

In Vietnam, they recently (in 2014) changed the legal definition of a social enterprise in Vietnam’s Enterprise Law. With this, the government promised to “encourage, support and promote their development”.

Additionally, the legislation mentioned that social enterprises in Vietnam would gain special treatment and support in granting licenses and certificates, as well as they will now be eligible to receive funding from various means to help the businesses.

This new legislation is a step in the right direction for developing country, Vietnam, but what effect will this actually have on the businesses themselves, as well as people’s opinions about them in the country?

Some believe that these improvements to the Enterprise Law won’t actually make much of a difference on the businesses already struggling in the area.

It would appear, in Vietnam’s case, that social enterprise still has a long way to go in developing countries. Additionally, one of the main dilemmas seems to be how to enlighten the people of the country about how beneficial it can be. Many still associate this type of business simply as being a charity, which is not the case.

A lot more awareness needs to be raised about what they can do for a country, particularly in these developing countries, where they arguably would benefit the most. It seems that many social entrepreneurs are already trying to raise awareness for their valuable businesses in these countries, and we believe that more people would be eager to promote, as well as explore what they could do for initiating their own social business.

Image source: https://www.flickr.com/photos/7855449@N02/4712815383