The Role for Social Enterprises and Social Investors in the Development Struggle

Abstract

This paper reviews the existing development literature, arguing that the currently dominant views and proposed solutions to achieving social and economic development neglect the possible contributions the private sector, and social enterprises specifically, can make in attaining the Millennium Development Goals. Given this latent potential, it will argue that social investors have a crucial role to play by providing a greater inflow of capital into nascent and growing social enterprises in developing countries. Drawing on conclusions from a UK-based study of the social investor, the unique motivations and expectations of this investor class will be outlined. Social entrepreneurs in developed and developing country contexts can both use this information to tailor their business models and plans toward attracting the financial capital needed to grow to scale and realize the positive social externalities for which they were established.

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