Unlocking the Social Economy 2025

The economic transformation required for the green and digital transitions can impose long-term shifts in costs, near-term price hikes and market volatility. Increases in the cost of goods (e.g. as a result of carbon taxes), including sustainable alternatives, can significantly impact poorer countries and households. Social enterprises design their products and services to directly address the needs or challenges of a target population. Through smart innovations, pricing strategies and the promotion of reuse, repair and recycling, they can offer essential goods and services at an affordable price.  Innovation and technology Social enterprises develop unique products or services that provide effective solutions to challenges caused by the green and digital transitions. They harness innovation and technology to ensure that their offerings are affordable. The European Social Enterprise Monitor finds that 85% of social enterprises adopt innovation in their businesses. Of the social enterprises surveyed, 30% identify platform technologies as relevant to their business and impact model.  A recent report by the Schwab Foundation highlights how social innovators are already adopting AI for positive impact – predominantly in healthcare, environment and economic development.46 There is parity between impactful applications of AI in high-income countries and low- and middle-income countries. This highlights the ability of social enterprises to adopt technology for impact – even in low-resource environments. Pricing strategies Social enterprises often employ pricing strategies that make essential products or services affordable to low-income or marginalized populations, ensuring access to goods that might otherwise be out of reach. Cross-subsidization or tiered pricing allows for a series of stepped prices based upon proven criteria: tiered prices can be set by age, income level, profession or services offered.2.2 Affordability of goods and services The Aravind Eye Care System in India BOX 4 Digital transition dimension: Moving to telemedicine Based in India, the Aravind Eye Care System is renowned for its innovative approach to delivering high-quality eye care to a broad spectrum of patients through a tiered pricing strategy. Founded by Govindappa Venkataswamy in 1976, Aravind has become one of the world’s largest eye care providers, offering services ranging from basic eye exams to complex surgeries. Aravind provides free or highly subsidized eye care services to patients from low-income backgrounds. Thanks to the subsidized model, these patients receive the same high-quality medical care as those who can afford to pay. Wealthier patients are charged higher fees for the same services. These fees are set at market rates and cover the full cost of the services provided, including any additional amenities or personalized care. Aravind had deployed telemedicine in its primary eye care centres since 2004. This now enables over 85% of the million annual outpatient visits at these centres to be resolved locally. This results in significant cost saving for the patients and also eliminating travel related carbon footprint. Source: Aravind Eye Care System Image credit: Aravind Eye Care System Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions 15