Collecting Data on Social Enterprises 2025

Framework for defining social enterprise BOX 2 While definitions and interpretations of social enterprise vary around the world, the definitions used by the members of the Schwab Foundation for Social Entrepreneurship’s Advisory Group on Social Enterprise Data share the following characteristics: –Purpose: The organization is primarily driven by a social and/or environmental purpose. –Revenue: A proportion of income is earned through trading. –Use of surplus: The majority of any surplus is reinvested towards its purpose. The members of the group found that the two additional characteristics used in the State of Social Enterprise report (see below) are important, but cannot be considered as inclusion criteria for research purposes. This means that if an organization does comply with the three abovementioned criteria but fails to comply with the two below, it is still included in the research. –Operations: They prioritize purpose over profit in operational and strategic decisions. –Structure: They choose legal structures and financing that protect and lock-in purpose for the long term. The reason being that for operations, the criterion was found to be duplicative with that of “purpose” – if an organization is primarily driven by a social and/or environmental purpose, this purpose will be prioritized in operational and strategic decisions. Structure was not considered as an inclusion criterion because in many countries there are no legal structures available to protect and lock-in purpose for the long term. Purpose of data collection 2.1 The purpose behind collecting data on social enterprises significantly influences the type of data gathered, the scope of the sample and how insights are analysed and used. Clearly defining the motivation for data collection ensures that efforts are targeted and relevant. Examples of motivations that drive data collection include: –Demonstrating size and scope: To build the case and demonstrate social enterprises’ contribution and importance in the broader economy and society, increasing the visibility of social enterprises and solidifying their legitimacy as a movement. –Identifying barriers and challenges: To inform policy efforts and funding decisions and to shape a more supportive enabling environment for social enterprises. By gathering data on these obstacles, policy- makers, funders and advocates can better address the needs of social enterprises and work towards removing systemic barriers through increased funding, policy changes or regulatory support, for instance. –Strengthening the sector: Encouraging the sharing of knowledge, best practices and a sense of community among social enterprises; helping build morale, identify best practices and encourage further innovation; and fostering a shared understanding of challenges and opportunities.The purposes behind gathering data on social enterprises will help uncover the main audiences of the data, which in turn can shape the research and the nature of data gathering, including the framing and questions posed to respondents. These could include: –Governments, which are interested in the economic contribution of social enterprises, including their impact on gross domestic product (GDP) and employment. –Businesses, which are interested in the types of products and services offered by social enterprises, as well as potential partnership opportunities. –Finance providers, which seek insights into the financial health of social enterprises, including funding needs, revenue models and investment potential. By aligning data collection efforts with the needs of these stakeholders, social enterprises can ensure that their data is relevant, actionable and used effectively to drive meaningful change. Collecting Data on Social Enterprises: A Playbook for Practitioners 10