Private sector The private sector can be a powerful partner in scaling social enterprise and benefiting from the impact perspectives and market access that social enterprises provide. Companies bring assets that complement what social enterprises often lack: capital, market access, technical expertise and distribution networks. Social enterprises, on the other hand, offer value to companies directly by supporting resilient supply chains, creating deep customer value or providing credible impact claims. By opening financing and procurement opportunities, sharing skills and co-creating products or services, businesses can help social enterprises grow more sustainably. A. Finance partnerships The private sector can: –Co-create patient-capital vehicles86 such as impact funds, revenue-based finance or guarantee facilities, with development finance institutions and foundations targeting the “missing middle” through mid-ticket growth capital. –Ensure clear eligibility and impact criteria so that financing reaches social enterprises, delivering both commercial viability and measurable social outcomes. –Use a blended financing approach; for example, combining debt from local banks — potentially supported by equity injections or guarantees to enable better lending terms and a higher risk appetite — with equity investments from impact investors and philanthropic contributions, aimed at de-risking investments or absorbing first losses. –Offer results-based payments for verified impact, generated by social entrepreneurs. In turn, the verification mechanism provides an auditable impact claim for companies, and an opportunity to address material social or environmental issues in their supply chains. More details about this opportunity can be found in the Forum report Beyond Compliance: Embedding Impact through Innovative Finance. –In the case of commercial banks, launch dedicated “impact loan” products and advisory services that significantly adapt traditional SME lending. This adaptation may incorporate social impact performance and stable public–private contracts (e.g. social procurement) into credit risk assessment and collateral requirements to provide longer-term, flexible debt that better accommodates the hybrid revenue models and non-linear growth of scaling social enterprises.B. Social procurement and supplier integration Companies can: –Set sourcing targets for social enterprises, by spend and supplier count in selected categories. –Adjust procurement criteria so contracts are awarded based on impact as well as price and quality. –Make processes friendly for small enterprises, with smaller lot sizes, simpler quality checks, gradual compliance with procurement requirements and preferential payment terms. –Use aggregator models to bundle demand and offer multi-year contracts, giving social enterprises stability and offering buyers reliable supply. Why it matters: Shifting even a small share of category spend creates durable revenue for social enterprises and diversifies corporate supply chains, improving resilience and relevance in local markets. How to begin: Publish a social procurement playbook and open a rolling expression of interest (EOI) for social enterprises, develop supplier development programmes (pairing onboarding with support to navigate documentation and quality requirements), making it easier for social enterprises to meet procurement standards. A generic social procurement manual is available from Yunus Social Business.87 C. Skills and operational support Beyond finance, companies can position themselves as capacity-building partners, helping social enterprises strengthen the systems and skills needed to grow and deepen their impact. They can: –Establish pro bono or part-time programmes where corporate teams provide targeted expertise in finance, quality assurance, supply chain, digital adoption, impact measurement and more.88 –Offer short-term (e.g. three- to six-month) placements where employees work directly with social enterprises, solving operational challenges while gaining exposure to new markets and business models; for example, SAP’s Flagship Social Sabbatical Programme.89 –Sponsor or co-design supplier-readiness accelerators, focused on high-spend categories (e.g. food, textiles, logistics, healthcare), giving social enterprises the training and certification they need to meet corporate standards. Companies can set sourcing targets for social enterprises, by spend and supplier count in selected categories, and adjust procurement criteria so contracts are awarded based on impact as well as price and quality. The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa 50

State of Social Enterprise Africa 2025