According to the Gordon Institute of Business, social entrepreneurship in South Africa can be defined as: “a blend of for and not-for-profit approaches, which balances the value and trust of social organizations with the efficiencies and profit motives of business.”

This hybrid business model has seen a rise in the last decade due to rampant social challenges as a consequence of South Africa’s complicated history; the aftermath of which is characterized by large scale poverty, poor education, high-income inequality and unemployment.

South Africa is ranked as the world’s most unequal country scoring 0.63 on the World Bank’s World Gini Index with one being an unequal society. Stats SA reports 55.5% of South Africa’s population as living below the national poverty line and unemployment hovering just below 28%.

The constraints faced by the government in meeting these challenges, with limited funding available to sustain charities, has necessitated the increase in social enterprises which operate in this gap.

Due to the importance of this model as a vehicle to improve the heartsore statistics above, and due to the dual nature of this type of enterprise, it is worth highlighting the characteristics required to succeed in this sector.

As co-founder of The Clothing Bank, our journey supporting 2,500 women to generate R117 million in profits for themselves, has been an eye-opener. So, what do social entrepreneurs do differently?

Soul of a charity, mind of a corporate
The driving force of social enterprise is to contribute to alleviating social ills. That is the start. To do this funding is required. The “for-profit model” ensures sustainability to continue making an impact.

A successful social entrepreneur is powered by purpose, a single, specific and defined goal which guides decision making and actions. This goal prioritizes changing lives for the better over personal gain. Social entrepreneurship is an emotional, raw and honest journey requiring continuous reflection and big-picture thinking.

At the same time, these types of entrepreneurs are disciplined, strategic and indefatigable business people with their eye on governance, accountability and measurement.

Sustain the helping hand
A prosperous social enterprise applies corporate best practice to strategic and operational activities with regards to planning, structures and systems. You need a strong business plan, vision, skilled staff, precise financial management and governance compliance to build an enterprise which elicits trust and remains viable. All these resources and processes, in most cases, may not be readily accessible at the start of the enterprise, but start anywhere and make these a key development focus in forward-planning.

Measurement and evaluation are of paramount importance; differing from corporates and charities in that profit and social impact carry equal weight as benchmarks. Efficient data gathering and analysis are key in these endeavors.

At the Clothing Bank, its goal is to empower women with the skills and opportunities to run businesses to eradicate poverty in their families. Besides the standard profit metrics, its social impact monitoring tools include detailed assessments at the start of program participants’ journey, specifically, their physical (health and environment), emotional and financial position. Evaluations are performed at set stages of the program and progress is measured against previous assessments.

Keep it moving
Thoroughbred social entrepreneurs are tenacious and stubborn in purpose despite hardships, disappointments and the emotional toils. They are excellent communicators with a high EQ to solicit buy-in and support for their vision from investors, staff and the people they are trying to assist. Their authenticity inspires hope and motivation; focusing stakeholders’ attention on the end goal despite challenges.

While structured and disciplined in approach, they are open-minded, absorbing new learnings and flexible in adapting course accordingly – often the road to success is a not straight path and does not follow the carefully crafted plan.

As the Clothing Bank, we are excited about and inspired by the increasing numbers of brave and determined individuals joining this sector. The more of us there are making an impactful, sustainable difference, the greater a society we will become.