Economic Reporter :
A British Council study has revealed that social enterprise is growing in Bangladesh with nearly half of all social enterprises six years old or younger.
The survey also found that Bangladeshi social enterprises are generating annual turnover of Tk 2.1 million on average and nearly three-quarters of the enterprises expect a substantial increase in turnover in the next financial year.
Most Bangladeshi social enterprises expect their venture to grow and they have wide-ranging growth plans – particularly expanding into new geographic areas.
They are developing new products and services through investment in their teams and by attracting capital to expand, it found.
The report, launched on Sunday at a function, was first-of-its-kind attempt to understand the scale of social enterprise activity in Bangladesh, the UK education and cultural centre said.
The survey indicates that 77 percent of the social enterprises were registered between 2009 and 2015 in Bangladesh. Most leaders are aged under 35.
Social enterprises are businesses which trade for a social purpose, re-invest surpluses into their social objective, and make themselves accountable for their actions, rather than simply maximising profits for owners and shareholders.
They create jobs for disadvantaged groups, empowering women, and addressing social exclusion throughout the country.
The British Council with the help of the Overseas Development Institute conducted the research.
It also looked into the existing enabling environment for social enterprises in a separate study titled ‘Social Enterprise Policy Landscape in Bangladesh’.
British Council’s Director in Bangladesh Barbara Wickham said the survey was “an important step” in remedying the knowledge gap that will inform the delivery of its social enterprise programme in Bangladesh.
The report also shows that lack of technical skills is seen as the biggest barrier to growth, followed by access to debt finance, lack of social enterprise awareness and cash flow constraints.
Donations and grants are the most common sources of funding, with few social enterprises securing concessional loans or equity. Limited capital supply is seen as the primary funding constraint.
The survey found that 90 percent of social enterprises are working with individuals from socially and economically disadvantaged communities, creating employment opportunities especially for disadvantaged groups.
A British Council study has revealed that social enterprise is growing in Bangladesh with nearly half of all social enterprises six years old or younger.
The survey also found that Bangladeshi social enterprises are generating annual turnover of Tk 2.1 million on average and nearly three-quarters of the enterprises expect a substantial increase in turnover in the next financial year.
Most Bangladeshi social enterprises expect their venture to grow and they have wide-ranging growth plans – particularly expanding into new geographic areas.
They are developing new products and services through investment in their teams and by attracting capital to expand, it found.
The report, launched on Sunday at a function, was first-of-its-kind attempt to understand the scale of social enterprise activity in Bangladesh, the UK education and cultural centre said.
The survey indicates that 77 percent of the social enterprises were registered between 2009 and 2015 in Bangladesh. Most leaders are aged under 35.
Social enterprises are businesses which trade for a social purpose, re-invest surpluses into their social objective, and make themselves accountable for their actions, rather than simply maximising profits for owners and shareholders.
They create jobs for disadvantaged groups, empowering women, and addressing social exclusion throughout the country.
The British Council with the help of the Overseas Development Institute conducted the research.
It also looked into the existing enabling environment for social enterprises in a separate study titled ‘Social Enterprise Policy Landscape in Bangladesh’.
British Council’s Director in Bangladesh Barbara Wickham said the survey was “an important step” in remedying the knowledge gap that will inform the delivery of its social enterprise programme in Bangladesh.
The report also shows that lack of technical skills is seen as the biggest barrier to growth, followed by access to debt finance, lack of social enterprise awareness and cash flow constraints.
Donations and grants are the most common sources of funding, with few social enterprises securing concessional loans or equity. Limited capital supply is seen as the primary funding constraint.
The survey found that 90 percent of social enterprises are working with individuals from socially and economically disadvantaged communities, creating employment opportunities especially for disadvantaged groups.
