What determines success and what prevents the development of social entrepreneurship, why it is important for social entrepreneurs to be able to analyze the social impact of their work and what is the role of development institutions – the editors of Positive Changes journal cover these topics in a conversation with Natalia Zvereva, director of “Our Future” Foundation.

Natalia Zvereva

Natalia Gladkikh

PhD in Psychology, Leading Expert, Centre for Technological Innovations, Institute of Social and Economic Design at the Higher School of Economics

Yulia Vyatkina

Editor, Positive Changes Journal

We know that the “Our Future” Foundation, together with the Higher School of Economics, has studied the experience of impact investment development in 17 countries around the world. Is there such a thing as a universal success strategy for the development of social entrepreneurship? Or are these always local stories whose success depends very much on the regional context?

We actually studied global best practices when launching major projects and programs for the development of social entrepreneurship in Russia. A universal model that would work worldwide has not been established – and cannot be established, because social entrepreneurship is based on the most urgent social problems that differ from country to country.

At the same time, there are some general principles that allow implementing a systematic approach to the development of social entrepreneurship. First, it is important to have cooperation between state institutions and big businesses. Effective development of social entrepreneurship requires investment and a solid regulatory framework, and this kind of symbiosis cannot be created single-handedly. Secondly, it is very important to develop information platforms. In this age of enormous information streams flowing in all directions, it is easy to get overwhelmed and never find the information you need. Moreover, prospective social entrepreneurs need to be able to see success stories, to know they are not alone. The third important aspect is an active position of big business itself: not only do we need investment, but also a willingness to share knowledge and teach small and medium-sized businesses. And finally, another vital factor contributing to the sustainability of social entrepreneurship in any country is the formation of permanent development institutions.

Would it be right to say there is a certain set of factors determining the success of social entrepreneurship in the country?

First of all, it is the overall economic climate. New challenges pave the way for social entrepreneurship for several reasons. For example, foreign manufacturers leaving. This opens up niches for import substitution, which small and medium-sized businesses can fill. In addition, the search for new economic models is often discussed as an alternative to the existing relations. The business needs to change its mindset: from the “sell fast and cheap” approach to the philosophy of meeting the needs of people, specific social groups, addressing specific social problems. People have become more active and courageous, the new generation is more empathic and more determined to change the world for the better. We have high hopes for them.

Second, cross-sector interaction is very important. The government is currently “probing” the field of social entrepreneurship at the legislative level. There is a potential for expanding the scope of the law on social entrepreneurship. Perhaps by increasing the groups it applies to. Or perhaps through unification and merging of different registries.

Thirdly, a rich information field, with high-tech services offered proactively, is of great importance as well. In simple terms, with the development of Big Data we need to identify potential social entrepreneurs and introduce them to the topics, possible models and ready measures of support. Our Foundation, for example, created an information portal for social entrepreneurs “New Business”, where you can find best practices, news, interviews and other useful information. This was done as much as 10 years ago. In addition, we are operating and regularly updating the Social Ideas Bank, where you can see how different business models work.

“My Business” centers and the regional Social Innovation Centers have done a lot of work to identify and assist social entrepreneurs in Russia.

Are regional social entrepreneurship development strategies similar, for example, between the European countries or within the Asian region? Which one is closer to Russia’s way in the development of the institution of social entrepreneurship?

We have studied social entrepreneurship models in several developed countries. After studying various models, we borrowed the most from South Korea’s experience – which has a similar classification and key support measures for this category of business.

We also studied educational programs on social entrepreneurship abroad and concluded that they all focused on their respective national social agenda, education level and entrepreneurial culture of students, as well as generally on established educational practices and formats. In general, an academic approach to teaching social entrepreneurship is more prevalent in Europe, while a practice-oriented approach is more common in Asia.

What are the factors facilitating the development of social enterprises in Russia?

Social entrepreneurship in Russia has taken root and is developing gradually, but quite steadily. The main reason is that the existence of social enterprises benefits not only their owners and employees, but also the state and society. The society is interested in private enterprises intent on addressing social problems, in addition to the state and charitable organizations, as they offer extra options and additional opportunities for the people. The state benefits from support organizations that are self-financed and complement the government’s social infrastructure. Both the state and the society benefit from the existence of organizations that develop and test innovative methods of addressing social problems. They make the social system more flexible and allow the tried and tested solutions to be massively implemented in public practice.

Among other key factors for the success of social entrepreneurs in Russia, we should also mention inherently different level of social infrastructure development in various regions and municipalities, which has been established over the years and was stimulated by regional, not federal financing of the social sector. Therefore, in places where a shortage of individual elements of social infrastructure does not require major investment, social enterprises can quickly and flexibly compensate. In addition, we see that social entrepreneurship is more actively developing in those regions that are ready to systematically support it, to see and discuss its problems and achievements, to introduce effective practices and ways of solving social problems in the operation of state social structures. Building a regulatory and legal framework for social entrepreneurship, development, financing and recording the results of its activities through the register of social enterprises allows this phenomenon to reach a fundamentally new level.