State of Social Enterprise Africa 2025

Purposes for seeking finance The primary purposes for seeking this finance were largely focused on sustaining and expanding operations. While 62% intended to use the capital to cover operational costs, 61% aimed to expand their products or services. Investing in equipment or infrastructure was a goal for 53%, with 36% planning to scale into new markets or locations and 35% dedicating capital to research and development. This indicates a desire to both maintain current activities and drive future growth.Formal social enterprises seeking and successfully securing finance FIGURE 12 Reasons social enterprises sought funding or finance FIGURE 1323%38% 10%18% 8%16% 7%13% 6%13% 6%12% 3%7% 3%7% 1%2%Grants Family and friends Impact investors Crowdfunding Bank loans Angel investors Microfinance Traditional venture capital Other Sought Secured To cover operational costs To expand products/services To invest in equipment or infrastructure To scale to new markets or locations For research and development To manage cash flow gaps Other62% 61% 53% 36% 35% 25% 3%Source: Survey data, World Economic Forum Source: Survey data, World Economic ForumGrowth stage38%Start-up stage36%Seed stage13% Established stage9%Expansion stage4% Grant Family and friends Impact investors Crowdfunding Bank loans Angel investors Microfinance Traditional venture capital OtherSeed stage Start-up stage Growth stage Expansion stage Established stage78% 40% 27% 23% 12% 26% 15% 14% 73% 40% 23% 22% 19% 18% 13% 9% 58% 34% 27% 23% 29% 20% 13% 13% 62% 20% 18% 31% 27% 18% 11% 52% 20% 39% 33% 24% 19% 8% 17% 5%2%3%4%1% The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa 32