Entrepreneurs around the World Are Paying Attention to the Social Aspects of Business
A recent study by the Global Entrepreneurship Monitor (GEM) experts, who were studying social entrepreneurship in 58 countries with more than 176 thousand persons included, shows that an average of 3.2% of persons in the world who are currently involved in the establishment of social enterprises has been recorded. At the same time, the persons involved into establishment of the enterprises focused on profits averaged to 7.6%.
Social entrepreneurs establish their own business around the world, but most of them live in the United States, Australia, Western Europe and Africa.
The study findings are based on the surveys carried out among 167,793 individuals in 58 countries worldwide.
According to the GEM terminology, social entrepreneurship is any type of business, organization or initiative that has specific social, environmental or public goals. Social entrepreneurship covers a significant share of the total business activities.
In Slovenia, 1.7% of persons are involved in a socially targeted early business activity. “The relatively low level of involvement in social entrepreneurship in the country shows that its popularity is low. Basically, this happens due to the lack of understanding the concept of social entrepreneurship. However, there are other reasons, for example, serious legal obstacles and the lack of funding,” says the Associate Professor Dr. Barbara Bradach Chojnik, a member of the GEM Slovenija research team, a member of the Faculty of Economics and Business of the University of Maribor.
There are 55% of men and 45% of women among the social entrepreneurs worldwide. The difference between sexes is not as big as in other areas of business. In all studied regions, except for Cuba and Latin America, the majority of businesspersons under the age of 18 to 34 years are engaged in social entrepreneurship.
Another interesting finding is that more than a third of social enterprises operate on the basis of public funding. Family and banks are also important funding sources.