State of Social Enterprise Africa 2025

Covering operational costs 69%435,970 full-time jobs created 91% employ youth 84% employ women 19% employ people with disabilities Formal/informalTop 3 financing needs Top 3 sectorsExpanding products/services 60% Investing in equipment or infrastructure 52% Education (19%) Art, entertainment and recreation (12%) Health and well-being (11%)87% of social enterprises were formally registered (341/390) 13% of social enterprises were not formally registered (49/390)89% of social enterprises plan to grow their businesses in the next year 41% Report low solvency 39,100 social enterprises 40% (160/397) of social enterprises surveyed in Ethiopia are youth-led 51% (199/390) of social enterprises surveyed in Ethiopia are women-led Top 3 purposes YouthWomenCommunity Seed stage Start-up stage Growth stage Expansion stage Established stageGrowth stage 7% 25% 44% 8% 15%Current legal frameworks/policy status Ethiopia does not have a legal framework that explicitly recognizes or supports social enterprises. Social enterprises are registered as for-profit (65%), non-profit (10%) and cooperative and community benefits (8%). However, in 2011 the government established the Federal Micro and Small Enterprises Development Agency (FeMSDA) to promote the growth and development of the micro and small enterprises (MSE) sector in the country.18COUNTRY FACTSHEET 2 Of those that were registered, 59% were registered as private companies, 9% were registered as not-for-profits and 6% were registered as benefit corporations Ethiopia 9 The State of Social Enterprise: Unlocking Inclusive Growth, Jobs and Development in Africa