Social Enterprise Pakistan 2018
AS the state has excluded millions of Pakistanis from the economic mainstream, a new wave of smart entrepreneurs is sweeping the country.
Charmed by the concept of social enterprise and aware of available opportunities to access funds to start a business, young people like to work for social change with a promise of personal benefits outweighing risks. The limited scope in the job market to absorb dynamic young minds nudge them further towards self-employment.
Social enterprises are organisations or start-ups created to further a social purpose in a financially sustainable way. Their surpluses are principally reinvested for the defined purpose rather than being pocketed by the proprietors as profit.
The concept has gained popularity in the elite development circles. Many leading social enterprises like Nest I/O, Daftarkhawan, PlanX, Acumen, Kashf Foundation, Shell Tameer and Akhuwat have been recognised globally for their efforts.
A recent report on the state of social enterprise in Pakistan prepared by the British Council in collaboration with its partners provides some insight into the size and spread of such enterprises across the country. The report highlights the information gaps which exist because the sector for the most part operates in shadows without clear regulatory oversight.
Some 448,000 social enterprises were found to be active in Pakistan in the fields of skill development, microfinance, health, education, water, agriculture and housing sectors, led mostly by young techies and cutting across class and regional divides.
Some 448,000 social enterprises, led mostly by young techies, are active in Pakistan in various fields
The self-involved government oblivious of the new currents has yet to evolve an informed opinion. The question of monitoring, registering or grading will surface only after social enterprises are defined and provided suitable legal framework. The social enterprise cell in the Planning Commission has yet to become functional.
Sartaj Aziz, an economist and PML-N stalwart who serves as the deputy chairman of the Planning Commission, is positive. “Social enterprises are supplementing government efforts to serve the masses and improve their well-being,” he tells Dawn over the phone. He says the mixed model of social enterprise where surplus is divided between profit and reinvestment for a cause has been the most popular in the country.
He highlighted the value of community involvement to deliver on social goals and mentioned a rural outreach project undertaken by the PML-N government in 1991-92. He said the challenge of direct foreign funding to organisations bypassing the government was addressed through a law passed two years ago that obligated government’s clearance for such inflows.
He promised that the official who heads the Centre for Social Enterprise, whose name he did not remember, would get in touch for more information, but the official did not respond until Friday. Asma Hyder, member social policy at the Planning Commission, was approached but she was too busy to respond.
Some economists are, however, not impressed. They challenge the very idea which they say is being pushed by dominant countries to erode the credibility of developing nations. Suspicious of the glorification of social enterprises, they direct their criticism to the government, which they say is ineffective and keen to absolve itself of its basic responsibility — providing its citizens with basic amenities and services.