State of Social Enterprise Africa 2025

There are diverse interpretations of the definition of a social enterprise and there is no consensus as to its precise boundaries. Social enterprise is also interconnected with terms such as “social business”, “social entrepreneurship”, “social innovation”, “the social economy” and “the social and solidarity economy”. This report draws on the framework from Collecting Data on Social Enterprises: A Playbook for Practitioners25 to establish a pragmatic working definition with three core characteristics: –Purpose: The organization is primarily driven by a social and/or environmental purpose –Revenue: A proportion of income is generated through the provision of goods and/or services26 –Use of surplus: Most of any surplus is reinvested towards the organization’s purpose For further information on definitions, and the framework adopted for this report, please see the extended methodology in The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa. Survey respondents were included if they identified a primary social or environmental purpose. The survey was designed to capture the core dimensions used across different definitions, making the dataset interoperable. This means that users can interpret the findings for their own perspective – for example, placing greater weight on participatory governance, reinvestment of surpluses, financial self-sufficiency or community-rooted legitimacy. Globally, social enterprises are mission-driven businesses that use entrepreneurship to tackle social and environmental challenges. They pair measurable impact with financial sustainability, so their business model directly sustains purpose. Legal and governance forms may vary – e.g. cooperatives, non-profits with trading arms, hybrids or purpose- driven companies – but all are designed to operate as businesses with a primary social mission. In some contexts, the social mission is codified through formal incorporation types, hybrid structures, asset locks or certification schemes that protect it and ensure accountability. Elsewhere, it can be upheld through proximity to communities, trust-based accountability, shared cultural norms, stakeholder participation and reinvestment of surpluses. Social enterprises across Africa possess all of these characteristics to varying degrees; however, there are nuances in how these enterprises are defined, framed and conceptualized across the continent: –Purpose: Social value is often defined as access (to water, energy, health, education), livelihood security (steady incomes) and community resilience (climate adaptation, food systems), not only issue-specific outcomes. “Doing good” is frequently tied to reducing everyday scarcity and vulnerability. –Revenue: Business models are often engineered for affordability and reach, e.g. micro-bundles, agent networks, cross-subsidies and informal distribution. –Community-rooted legitimacy: Mission alignment is often sustained through trust, proximity to communities and shared cultural values, even where formal governance mechanisms are absent or weak. –Regional diversity: Africa is a constellation of diverse economies, regulatory contexts and social landscapes. From deep financial ecosystems to fragile, fragmented settings – these factors shape how social enterprises define social value, set their mission and governance, and drive impact. These dynamics underscore the importance of an interoperable dataset: rather than advancing a singular global definition, the report provides a flexible evidence base that policy-makers, practitioners and researchers can adapt to their own frameworks – while ensuring that analysis reflects the operating conditions, priorities and ways in which social enterprises generate and sustain social value at the local level.1.1 Defining social enterprise Globally, social enterprises are mission-driven businesses that use entrepreneurship to tackle social and environmental challenges. Credit: World Economic Forum / Michael Calabrò 14 The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa