Covering operational costs 66%393,000 full-time jobs created 86% employ youth 90% employ women 30% employ people with disabilities Formal/informalTop 3 financing needs Expanding products/services 59% Investing in equipment or infrastructure 59%92% of social enterprises were formally registered (494/537) 8% of social enterprises were not formally registered (43 out of 537) Of those that were registered, 51% were registered as private companies, followed by 31% that were registered as not-for-profits and 4% that were registered as other (not specified)98% of social enterprises plan to grow their businesses in the next year 54% Report low solvency 197 ,000 social enterprises 40% (149/376) of social enterprises surveyed in South Africa are youth-led 67% (361/539) social enterprises surveyed in South Africa are women-led Education (36%) Health and well-being (15%) Civic engagement (14%) YouthWomenCommunity Seed stage Start-up stage Growth stage Expansion stage Established stageGrowth stage 20% 39% 30% 4% 7% COUNTRY FACTSHEET 5 Top 3 sectors Top 3 purposesCurrent legal frameworks/policy status South Africa does not have a dedicated legal framework for social enterprises. Social enterprises are registered as for-profit, non-profit, community interest companies, cooperatives and community benefits societies. However, South Africa does provide some supportive measures, including tax exemptions for organizations registered as public benefit organizations (PBOs) and procurement policies requiring 30% subcontracting to SMEs in public tenders.23 The absence of a minimum capital requirement for enterprise formation also facilitates market entry for social enterprises. In addition, the government has published a Social Economy Draft Green Paper, signalling a formal intent to develop a more supportive framework.24South Africa 12 The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa

State of Social Enterprise Africa 2025