CAPS findings reveal that funding, talent, and government are the three most important pillars of support for the growth of 1.2 million social enterprises in the region.
HONG KONG (December 9, 2019)—The Centre for Asian Philanthropy and Society (CAPS) hosted a media briefing today to launch its study, “Business for Good: Maximizing the Value of Social Enterprises in Asia.” The study is the first and most extensive evidence-based comparative analysis of social enterprises and impact investing in Asia, surveying 584 social enterprises and interviewing 140 stakeholders across six Asian economies.
Asia’s Landscape
Social enterprises and impact investment are emerging trends in Asia, driven by increasing wealth and surging enthusiasm for new actors to come together to address societal challenges. There are at least 1.2 million social enterprises in the six Asian economies studied (Japan, Korea, Hong Kong, Thailand, Indonesia, and Pakistan). Governments of these economies are spending at least US$100 million in direct and indirect support for social enterprises and an additional US$900 million to general startups per year.
Despite keen interest in supporting social enterprises, there is a lack of research on what is needed and how to help. With 60% of the world’s total population and a 50% share of global GDP, Asia still only receives 16% of the US$502 billion global impact investment.
Maximizing the Value of Social Enterprises in Asia
“CAPS believes in maximizing private resources for creating positive social impact,” said Ruth A. Shapiro, Founder and Chief Executive of CAPS. “With that as our mission, CAPS has launched the first and largest evidence-based analysis of social enterprise needs in Asia. We surveyed 584 social enterprises and interviewed 140 stakeholders in six Asian economies.”
“Our study draws upon a groundbreaking repository of original data and showcases evidence-based insights on the spectrum of their needs and action-oriented insights on strategies.” The study also sheds light on important aspects of the sector which are often overlooked or misunderstood. For example, 95% of social enterprises are or want to be profitable as the path to achieving their social mission. Almost half of all founders are women, and a third of all founders are over the age of 40. These statistics illustrate the seriousness social enterprises place on being viable businesses in addition to generating social impact, and that enthusiasm for them cuts across gender and age.
Ronnie C. Chan, Chairman of CAPS and of Hang Lung Properties Ltd. added, “There is a great deal of excitement about social enterprises and impact investing today but there is also much confusion. This report sheds important light on what early-stage social enterprises need to thrive, paving the way toward larger, successful companies achieving both business success and social impact.”
Toolkit for Stakeholders
Mehvesh Mumtaz Ahmed, Director of Research at CAPS, said: “With all the action-oriented insights gathered from our study, CAPS has put forward toolkits to guide philanthropists, impact investors, and corporates. The toolkits will act as roadmaps for how they can best leverage their unique assets to enter the field and support social enterprises.”
For philanthropists, they could consider funding early-stage enterprises and ecosystem enablers. They could also leverage their networks to enhance recognition of the sector through awards and calls to action among personal connections. To raise awareness, philanthropists could support research, knowledge-sharing, and entrepreneurial education.
Impact investors can provide great help in the financial sphere. They could take a broader portfolio approach to impact investing, opening up to a wider range of debt and equity instruments more suitable for social startups. They could also encourage others to invest in the sector, support social enterprises in impact measurement, and offer high-touch mentorship.
Corporates can help raise awareness and fund enterprises. Moreover, they can leverage their assets into direct support for social startups by integrating social enterprises into their supply chains, lending talent, and facilitating mentorship to pass on industry insights.
The full report is now available for download on the CAPS website.
About The Centre for Asian Philanthropy & Society (CAPS)
Established in 2013 and working across more than 17 economies in Asia, the Centre for Asian Philanthropy and Society (CAPS) is a nonprofit organization committed to improving the quantity and quality of philanthropic and private giving throughout Asia. Our mission is to maximize private capital for public good, conducting research, advisory, convening and capacity building to engage philanthropists, foundations, family offices, corporates, government bodies, social sector organizations and experts on best practices, models, policies and strategies to facilitate private giving and social investment in the region.