State of Social Enterprise Africa 2025

Page 26 of 64 · WEF_State_of_Social_Enterprise_Africa_2025.pdf

1.6 Number of direct jobs created by social enterprises Social enterprises are a major engine for employment, estimated to have created at least 12 million jobs across Africa. Using a methodology that combines enterprise estimates with survey data, the total paid workforce impact of African social enterprises could employ 12–56 million people,52 which includes 8–45 million full-time roles and 4–11 million part-time roles, in addition to 4–15 million volunteer positions. A 2020 study found that social enterprises are 2.89 times more likely to actively try to create jobs than profit- first businesses.53 This high-level estimate of 12 million jobs is built upon a diverse employment landscape. The data shows a significant difference between the average (mean) and typical (median) number of employees (e.g. the mean number of full-time employees is 33, while the median is six). This analysis indicates an ecosystem characterized by a large volume of small social enterprises alongside a few major organizations that create a disproportionately high number of jobs. Increasing job creation demonstrates stability and growth. Over the past year, 43% of social enterprises increased their number of paid employees, while another 46% remained stable, which is a highly positive indicator for the sector. This is vastly different to other African MSMEs, where 40% of MSMEs have had to lay off staff in the last two years and 40% are unlikely to hire in the near future.54 Social enterprises prioritize job quality and economic inclusion. The survey data found that social enterprises prioritize full-time employees over part- time or volunteer positions, which generally correlates to more secure livelihoods and decent work. Beyond the numbers, social enterprises actively drive economic inclusion based on who they employ: 91% of social enterprises surveyed employ youth, 82% employ women and 23% of social enterprises employ people with disabilities Furthermore, most social enterprises are built on inclusive teams: more than half (59%) have a labour force made up of more than 50% women, and almost two-thirds (64%) have a labour force composed of more than 50% youth. This confirms that the jobs being created are inclusive and directly support poverty reduction. Their reach also extends across geographies. While 45% of social enterprises are in urban areas, 28% are in peri-urban areas and 24% in rural areas. Stakeholders particularly noted the significant community impact of social enterprises in the agribusiness sector due to their employment provision in rural and peri-urban areas. Social enterprises actively drive economic inclusion based on who they employ: 91% of social enterprises surveyed employ youth, 82% employ women and 23% of social enterprises employ people with disabilities. 26 The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa
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