Social entrepreneurship is worthwhile: if the solutions of the more than 1,700 social entrepreneurs in Germany were systematically used and better integrated into existing systems, this would result in economic benefits with potential billions.
This is the conclusion of a joint study by Ashoka and McKinsey. In it, they examine the factors that determine the success of social enterprises. The results show that social entrepreneurs can play an important role in addressing major societal challenges.
“The potential is enormous”
McKinsey partner Matthias Daub Based on the results, it is stated:
“The potential of these social entrepreneurs is enormous.”
A nationwide introduction of breast cancer screening based on the Discovering Hands model alone would not only save many lives—it would also have a positive economic impact of €80 to €160 million annually, including through lower treatment and follow-up costs. Discovering Hands is one of four companies whose success is being examined in the study.
The four selected examples together have, according to calculations by Ashoka and McKinsey estimate a financial potential of at least one billion euros annually—and these are just a few of the 72 social entrepreneurs Ashoka is currently supporting in Germany (Ashoka Fellows). Extrapolated, this would result in a financial potential in the tens of billions.
Social entrepreneurship must be promoted more strongly
However, the study shows that it is anything but self-evident that new ideas actually have a lasting impact.
“We must improve the framework conditions to integrate successful social innovations into existing systems, for example through laws, health insurance benefit catalogues or teacher training,”
says Odin Mühlenbein, Partner at Ashoka Deutschland.
The study identifies three success factors:
- Funders should make funding allocation and framework conditions more flexible.
- Partners in the systems should improve cooperation.
- Social enterprises should more clearly state their systemic goals, the benefits of these goals for society, and their contribution to these goals.
The study analyzed four social innovations as examples:
- Discovering Hands improves the early detection of breast cancer using the particularly strong sense of touch of blind women.
- Insanely Human offers effective prevention of mental illness among students through education and contact with those affected.
- Aperitifs helps to identify school truants early and to take appropriate measures immediately.
- Serlo Education has developed the “Wikipedia of Learning” and enables a more successful educational path because students can acquire their knowledge independently and at their own pace.
