The concepts of “social entrepreneurship” and “social enterprise” have received much interest over the last three decades. Scholars have paid considerable attention to this phenomenon, particularly in the Western world, though in the African context the concept is still emerging in academic discourse. Social entrepreneurship is establishing itself as an important driver of societal development.

The question is whether it could serve as a viable alternative to non-profit organisations (NPOs) in addressing South Africa’s persistent and growing social challenges.

NPOs have faced a rapid decline due to various factors, including funding cuts, non-compliance, and loss of legal status – largely driven by shrinking state subsidies and decreasing international aid.

Encouragingly, investors and development finance institutions such as the Industrial Development Corporation (IDC) – which runs a dedicated social enterprise programme providing funding and support to businesses tackling social and environmental challenges – are backing social entrepreneurs and expanding opportunities for social ventures.

Despite this momentum, these businesses still struggle with complex legal and legislative structures. NPOs face similar constraints, characterised by organisational fragmentation and limited resource capacity, leaving many at a crossroads amid the country’s deepening socio-economic challenges.

Social entrepreneurship helps to bridge the gap by creating innovative ways and practical methods that are tailored to the needs of local communities. Beyond solving challenges, social entrepreneurship promotes inclusive growth and empowers communities by strengthening and widening beneficiation.

A transition from NPOs to social entrepreneurship would enable organisations to align their social mission with a sustainable business strategy, generate multiple income streams, and reduce dependence on a single funding source.

With greater recognition from government and the private sector, social entrepreneurship can play a significant role in driving job creation and economic growth. Ultimately, it represents an innovative, long-term alternative to NPOs – one that effectively combines social objectives with entrepreneurial strategy to create lasting community impact.

■ Matebese writes in her personal capacity.