In mid-December, the first German Social Entrepreneurship Monitor (DSEM) was presented by the Social Entrepreneurship Network Germany (SEND). The study attempts to provide an overview of social entrepreneurship in Germany. One finding emerging from the DSEM: While other startup sectors are still considered male-dominated, the social entrepreneurship sector boasts a very balanced gender distribution.
The DSEM, made possible by SAP, reveals for the first time how social entrepreneurship is structured in Germany. It examines the structures, processes, and concrete goals of social enterprises in Germany, providing insight into their innovative potential and the specific challenges they face. The DSEM yields some insightful results—here's a selection:
Findings from the DSEM: Social Entrepreneurs in Germany…
...create social innovations: German social enterprises aim to solve social problems in Germany and rely heavily on innovation. A full 75 percent of study participants rate their product or business model as a market innovation.
...half are female: Around 50 percent of the participating social enterprises were founded by women. A comparison with traditional startups (according to the German Startup Monitor, the rate was 15.1 percent in 2018) shows that women in particular have a strong entrepreneurial spirit in social entrepreneurship.
...wish for better political framework conditions: With 61 percent of DSEM social enterprises, almost two-thirds rate the policy with regard to its promotion and support of social enterprises as "poor" or "unsatisfactory".
...are primarily aimed at consumers: The offerings of over 70 percent of social entrepreneurs are primarily aimed at consumers (B2C), while 53 percent also or primarily work in the business sector (B2B). More than a third (35.5 percent) primarily address government agencies (B2S).
...are primarily looking to expand their activities qualitatively: 87.9 percent of DSEM social enterprises are striving for scaling. This means they want to expand their sphere of influence, help new ideas break through, and reach more people.
“Social enterprises are a powerful driver”
"We cannot solve the social challenges of the 21st century solely with the tools of the last century. This makes it all the more important to develop and test new solutions and offer the best ideas good development opportunities. Social entrepreneurs do just that. They are thus an important player in transferring our social market economy to the present day and shaping a future fit for our grandchildren."
so Markus Sauerhammer, Board of Directors of Social Entrepreneurship Network Germany eV.
“By combining social mission and economic orientation, social enterprises are a powerful driver for an economy that stands for greater inclusion, sustainability and ultimately profitability,”
says Dr. Daniel Holz, Managing Director of SAP Germany.
"Social enterprises are not a new phenomenon. However, we are still at the beginning when it comes to understanding how best to support them or how to measure their economic and social success. And that's precisely why supporting the first German Social Entrepreneurship Monitor was important to us."
The German Social Entrepreneurship Monitor was developed in collaboration with Otto von Guericke University Magdeburg. It will be published annually in the future and is intended to provide an outlook on the development of social entrepreneurship in Germany.
The German Social Entrepreneurship Monitor can be downloaded free of charge here.
