According to a United Nations Economic and Social Commission for Asia and the Pacific and Social Enterprise UK study from 2021, social businesses are more likely to report higher turnover; nonetheless, they also tend to be less likely to lose funds during a crisis, such as a pandemic, when in comparison to small private companies.
Where is this resilience coming from?
1. The adaptability of social businesses.
The high adaptability and innovative nature of a social business allow social entrepreneurs to quickly react to sudden change, and different market environments and adapt solutions. COVID19 has only proven so.
- Only 1 percent of social businesses closed due to COVID19 (out of 740 social enterprises surveyed in 38 countries, the survey target);
- Over 50% report updating their business model;
- Over 55% increased their transaction and presence online.
- For some, pandemics even demanded the creation of new products or services to survive.
2. Goal-oriented mind
Instead of being solely profit-oriented:
- 67% of social enterprises have taken tackling climate emergencies into their articles of association;
- 84% believe that buying socially responsible or environmentally friendly products is as important — or more — than cost;
- 20% of social businesses are addressing climate change as a core part of their social mission.
Social businesses have a tendency to rethink their material chains and evaluate their sustainability and effect on the environment, as well as its users. While traditional business is yet on the way to adapting their social missions, social entrepreneurs are the pioneers of responsible consumption and sustainability awareness.
3. Community empowerment
It is important to remember that the presence of social enterprises might offer a sense of common direction and purpose in communities, as well as community development possibilities:
- Presenting local problems — feeling their pulse, finding solutions, and creating workplaces at the same time;
- Underlining minorities issues, making the community aware of them, and aiding in solutions;
- Encouraging the community’s values.
It is only natural social businesses enable inclusivity and overall closer relationships among community members. It makes them resilient, too — as these businesses display transparency and care, the recipients tend to call back in the same, kind manner. The social business may grow past the local community’s boundaries, yet it will always feel a mutual support system among locals if it’s the starting point.
It is also a great point to get back for constructive feedback for — a place where you started, sometimes from absolute zero.