requirements. Ensure that pathways are accessible to women- and youth-led micro- enterprises and informal actors, so that formalization expands opportunity without excluding vulnerable groups. –Open up existing funding or support mechanisms to social entrepreneurs. As many social entrepreneurs operate on a hybrid model between for-profit and non-profit, existing government schemes to support economic development may preclude applications by social entrepreneurs. Designing these schemes with social enterprises in mind facilitates access without creating net-new fiscal commitments (e.g. Germany’s opening of the ERP Startup Loans for charitable limited liability companies).80 Why it matters: An enabling legal and policy framework provides clarity and predictability, lowers barriers to participation and ensures that incentives and protections reach enterprises delivering social and economic value.C. Public social procurement Governments can: –Embed social value in tenders by adding social and environmental criteria or quotas, encouraging commercial suppliers to collaborate with social entrepreneurs and/or offering set- asides or scoring preferences for verified social enterprises.81 –Pilot priority categories such as school meals, health services, waste management and last- mile logistics, where social enterprises are well placed to deliver. –Lower entry barriers to public procurement for social enterprises through supplier- development measures such as pre-tender training, standardized templates, maximum 30-day payment terms and alternatives to large performance bonds, to reduce barriers to entry and improve solvency. Why it matters: Revenue is the most sustainable form of financing for social entrepreneurs. What’s more, public procurement is often the largest market in any economy, where even modest targets can create predictable demand and unlock investment for social enterprises. Credit: Zlto The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa 48

State of Social Enterprise Africa 2025