Traditional businesses measure their success by profit and how much they can bring shareholders. Social enterprises have multiple bottoms lines: profit, people and planet. Profit is important in sustaining a business, but the idea of corporate social responsibility (CSR) is gaining in popularity. Consumers educate themselves on products which leads businesses into action. Focusing on multiple areas of business (triple bottom line) is the crucially important reason why social enterprise works.
The Traditional Standard: Profit
Profit is an excellent measure of growth and is quantifiable. A business that has a surplus by the end of the year means bills were paid and employees provided for. It doesn’t hurt that investors or shareholders see a return on their money. If there is profit, that means the company is an asset to the economy; this then means more customers, more employees and more investors overall. This business detail remains a critical factor in why social enterprise works.
The Growing Standard: People
People want to be happy, and as most of a person’s waking hours are spent at work, these two aspects of life are thereby deeply intertwined. It’s becoming common knowledge that a happier employee means a more productive workplace. An employee who feels empowered and enjoys what they do generally equates to higher productivity and profitability.
Success with people can lead to 65 percent in higher share prices and 100 percent more job applications for the company.
The Growing Concern: Planet
Consumer understanding of the planet’s dwindling resources are slowly impacting their buying habits. There hasn’t been a huge move towards green living, but some like social enterprises make this a priority along with profit and people. A new awareness day, Overshoot Day, marks the calendar for when humanity has used up Earth’s resources for that year.
From 2000 to 2017, Overshoot Day crept up from late September to early August, almost by two months. Social enterprises have noticed this trend and are now making moves to change it through sustainable resources.
A Moral Solution: Changing the Trajectory for an At-Risk Individual
Many businesses might choose a social entrepreneurial path because there is an issue the organization wants to address. At the heart of freedom businesses (a subgroup of social enterprises) is the goal to hire at-risk individuals. Some businesses like Purnaa, a manufacturing business in Nepal, were inspired to create opportunities for marginalized people and survivors of exploitation. Others like Papillion Enterprise, an Artisan shop in Haiti, wanted to prevent orphans through job creation.
Using Resources to Continue the Process
A difficult move for many small social enterprises is growth, particularly in some countries outside of the U.S. There might not be property to mortgage against or the interest rate would kill the purpose. Some social enterprises — like Kairos Trader — use profits and fundraising to provide 0 percent loans to social enterprises. As business grows and money is repaid, the loan can then be cycled into another loan to help social enterprises start or step up.
Economic Growth: The Ripple Effect
This list would not be complete without mentioning social enterprises’ impact on economic growth– freedom businesses’ commitment to marginalised people and the Earth is why much of its social enterprise works.
Communities that may have been jobless or ostracised now have opportunities. Those with jobs are able to educate their children and become consumers which grows consumerism on a generational scale building the economy with it.
According to Matt Peterson, founder of Kairos Traders, every sector is needed to make a change for people and planet, but business offers a unique solution. It can seem counterintuitive to have a triple bottom line, but success is proving why social enterprise works.
Profit is needed to be able to grow and provide jobs and materials, but a business that bases its impact on community and planet is a more holistic approach that will bear more fruitful results.
– Natasha Komen
Photo: Flickr
Facts About Poverty in Morocco
Morocco’s low labor costs and proximity to Europe have allowed the nation to move toward a diverse market-oriented economy. Despite its economic progress, as of 2022, 19% of those in Morocco remain in poverty and live on less than $4 a day. Poverty in Morocco remains an issue. Recognizing the poverty crisis in Morocco is essential to alleviating it; this feat is possible by providing the public with facts about poverty in Morocco.
Future Steps in Morocco
Several nonprofits are actively working to reduce poverty in Morocco. Notably, the High Atlas Foundation (HAF), an NGO founded in 2000, has established organic fruit tree nurseries across seven provinces in Morocco, helping farmers gain agricultural skills. Additionally, HAF offers women literacy courses and professional training and links marginalized communities to governmental and international agencies.
Another organization working to reduce poverty in Morocco is the International Fund for Agricultural Development (IFAD), which focuses on improving the incomes and living conditions of impoverished rural people. Since its inception in the country, IFAD has impacted 727,045 households and implemented 16 projects. With the aid of these nonprofits and government efforts, the lives of those in Morocco will significantly improve.
– Carolyn Gibson
Photo: Pixabay
Updated: May 27, 2024
The Success Levels of Humanitarian Aid to Kazakhstan
A Middle Income Country
According to the European Commission (EC), Kazakhstan is now considered a middle-income country, which means that it is self-sufficient enough to maintain a stable economy. However, this also means that the rest of the world has less influence and can offer less assistance to the Kazakh people. The EC worked from 1991 to 2014 to help turn Kazakhstan into a less corrupt state through an increase in their judicial efficiency, healthcare reform, more inclusive education and public administration.
Decreased Poverty, Increased Gender Equality
Despite the continuation of growth and economic prosperity in Kazakhstan, there is still need in the region; many countries still attempt to eradicate poverty completely and increase gender equality. Norway is one of those countries. According to the Norwegian government, it is working to stop the influx of illicit and criminal actions, as well as building on existing maternal health in the area.
Until poverty is eradicated (hopefully by 2030), and maternal death rates fall, Norway will not be satisfied with the success of humanitarian aid to Kazakhstan.
Success of Humanitarian Aid to Kazakhstan
Now that Kazakhstan is growing into a strong and independent country, it is time for the success of humanitarian aid to Kazakhstan to be translated into humanitarian aid for others. According to an article by the Astana Times, Kazakhstan, with its strong history of ethnic and religious diversity, provided humanitarian support to Syrians ravaged by civil war.
Kazakhstan is also known to support many other countries, such as Myanmar, Ukraine and parts of the Caribbean. Kazakhstan contains many natural resources, such as oil, mineral and metal reserves, and now with the help and success of humanitarian aid to Kazakhstan, the country has the potential to spread its stability to others.
– Molly Atchison
Photo: Flickr
A Need for Change: Top 10 Facts About Poverty in India
India is a South Asian country with one of the fastest growing economies and yet still a large number of inhabitants living in poverty.
The Top 10 Facts About Poverty in India
Sooner Rather than Later
With poverty continually taking such a toll on India, it is important to understand that it is a country in need of assistance. Allowing people the ability to see their harsh living conditions is one way to ensure that these top 10 facts about poverty in India improve over time.
– McCall Robinson
Photo: Pixabay
3 Major Projects Toward Sustainable Agriculture in Timor-Leste
Timor-Leste is a small, agrarian country that largely depends on its struggling agriculture sector for financial and economic security. Nearly 80 percent of Timor-Leste’s population is smallholder, local farmers who depend on the annual crop yields for their subsistence. Unfortunately, crop yields are often low or lost post-harvest, leaving many areas of the country below the poverty line.
In some districts, like Manufahi, approximately 85 percent of the population survives on $0.88 a day. Developing sustainable agriculture in Timor-Leste has been a focal point for the Ministry of Agriculture and Fisheries since 2003, but still requires significant financial backing and guidance from other government agencies and global aid societies.
Multiple projects have been proposed and implemented by the Ministry of Agriculture and Fisheries and the government of Timor-Leste in conjunction with the Global Agriculture and Food Security Trust Fund and the United States Agency for International Development (USAID). The sole purpose of these projects is to give Timor-Leste’s agriculture sector the chance to successfully become a competitor in burgeoning world markets via modernizing farming techniques and educating the smallholder farmers.
Here are a few of the projects implemented for the development of sustainable agriculture in Timor-Leste:
The Timor-Leste Agricultural Rehabilitation, Economic Growth and Sustainable Natural Resource Management Project
The sole purpose of this project, instituted by the Ministry of Agriculture and Fisheries in 2003, was to increase farm and crop productivity. To accomplish this, farmers were taught new and advanced techniques for increasing crop yields and reducing the number of crops lost after harvest. This, in turn, would raise the annual income of the farmers and create more jobs. This project saw moderate success, but Timor-Leste still faces the same challenges.
Crops are constantly lost due to inefficient farming practices, which in turn creates harsh and unsustainable environments for future crops. Educating farmers on appropriate farming techniques crop survival in the country’s environment remains one of the main objectives of most projects geared for sustainable agriculture in Timor-Leste.
The Developing Agricultural Communities (DAC) Project
This project aims to connect smallholder farmers with large-scale retailers and train them in the technologies and horticultural practices necessary for expanding into vast markets. In conjunction with ConocoPhillips, an American energy company, and K’manek and Dilimart, two of the largest local supermarkets in Timor-Leste, USAID hope to connect local farmers with the farm-to-market chain to improve their economic and social positions.
The Sustainable Agriculture Productivity Improvement Project (SAPIP)
This six-year project, agreed upon by the World Bank and the government of Timor-Leste in 2016, received $21 million from the Global Agriculture and Food Security Trust Fund. It aims to revitalize and improve the productivity of crops in selected areas so as to boost their status in the world market. Timor-Leste has dealt with malnutrition as a result of the loss of staple foods and the insecurity of food production caused by poor soil and water management.
This project aims to create secure food production through smallholder farmers by improving multiple watersheds in different geographical locations. These watersheds will prevent contaminants from entering the crop soil while simultaneously increasing the amount of water that reaches the crops. The sheds will be monitored and evaluated by the Ministry of Agriculture and Fisheries and the continued support of the Global Agriculture and Food Security Trust Fund.
Future Steps for Timor-Leste
Sustainable agriculture in Timor-Leste is well on its way, but still requires additional funding for the vast number of projects planned for continued success in their agriculture sector. Timor-Leste still needs to establish a reliable and stable economy through their marketability, and through continued support from its government and global aid campaigns, the nation can achieve that goal.
– Kayla Rafkin
Photo: Flickr
Credit Access in Suriname Continues to Grow Every Day
While small, the South American country of Suriname has a booming mining economy. With a recent rise in oil prices, Suriname has worked to overcome a recent dip in economic growth and currency inflation. Credit access in Suriname is also on the rise, and there have been several advancements in credit access and its reporting in recent years.
International Finance Corporation
The International Finance Corporation (IFC) reported that in 2013, Suriname created a new credit reporting system that increased the access businesses have to information about credit processes. This has been built and implemented to help build better business strategies and manage risky lending strategies, measures that then save small businesses from dangerous credit choices.
Systems like these encourage lending growth and healthy business strategy in small countries. Although Suriname has little to no record of credit histories before 2013, the IFC’s new credit reporting system is a step toward healthier credit access in Suriname.
Female Investors and the U.N.
Suriname is in the process of an economic reboot after economic growth statistics dropped from five percent in 2012 to -10.4 percent in 2016. At a 2012 presentation to the U.N., a representative for Suriname spoke on behalf of the female population of Suriname and presented a proposal for a new national gender policy; the plan delineated how the nation would prevent further discrimination of Surinamese women in business practice.
One of the areas in which women have been hurt by discrimination is in the credit access market. By implementing this new policy-based on the Beijing Plan for Action, Suriname hopes to alleviate the added stress of gender discrimination on its credit market.
Growth of Credit Access
Although only two of many new policies offer a solution for credit access growth, Suriname has a strong and constantly increasing economy that helps to grow credit access within its borders.
– Molly Atchison
Photo: Wikimedia Commons
Top 10 Facts About Poverty in Nigeria
Nigeria is known for having one of the more affluent economies in Africa; a large oil drilling industry ensures that the country always has a consistent revenue stream. But the lives of people in Nigeria reflect poverty rather than affluence — here are the top 10 facts about poverty in Nigeria:
The Top 10 Facts About Poverty in Nigeria
The Need for Diversification
These facts about poverty in Nigeria make one thing clear: the nation needs to diversify its economy and prepare its younger generation by emphasizing education. The high level of homelessness and poverty is a stark contrast to the country’s relative affluence; although statistics show that poverty in Nigeria is on the decline, the progress is sluggish. In the meantime, upwards of a hundred million people undertake a day-to-day struggle to scrape by.
– Sam Bramlett
Photo: Flickr
The Top 10 Need-to-Know Facts About Poverty in Ireland
In Ireland, the number of people living in poverty is steadily increasing. Since the beginning of the recession in 2008, the number has risen due to situational factors, such as unemployment and poor health, and exacerbated structural economic inequalities that perpetuate a cycle of poverty in Ireland.
Top 10 Facts about Poverty in Ireland
Even though there are still many steps needed to overcome poverty in Ireland, the Irish people are highly resilient. The 2017 World Happiness Report found that Ireland is the 15th happiest country in the world. Additionally, the report found only a small loss in happiness among the Irish people since the 2008 recession, and a high number of people reported they have someone to count on — strengths necessary to survive hardship.
– Hayley Herzog
Photo: Flickr
Developments In Sustainable Agriculture in Sao Tome and Principe
Sao Tome and Principe is a small island nation in Africa, close to the equator. It has a population of less than 200,000, and extreme poverty is widespread in the country, particularly in rural areas.
Sao Tome and Principe is Africa’s smallest country geographically and relies heavily on agriculture, specifically the production of cocoa. Approximately 95 percent of the country’s exports are in cocoa; however, due to recent droughts and a lack of sustainable agriculture in Sao Tome and Principe, production has steadily decreased.
Current State of the Economy
Roughly 60 percent of the nation’s employment is in the rural sector and as of 2016, the unemployment rate was just under 14 percent. Since the nation is so small, the economy doesn’t have much room to grow — it increases approximately four percent per year. This growth is not enough for the country to sustain itself, and due to the lack of sustainable agriculture in Sao Tome and Principe, the economy cannot flourish or grow any more than it currently is.
With a sustainable agriculture system, the country will be able to decrease poverty, increase employment, and by extension, better the economy.
Efforts Towards Sustainable Agriculture
Since the late 1980s, the World Bank introduced and implemented projects in Sao Tome and Principe to help strengthen the country’s agriculture and production. Though most of these projects have been met with limited success, the World Bank has invested over 20 million in Sao Tome and Principe’s agriculture over the years.
Most projects still being implemented by the World Bank are now dedicated towards financials and budgeting; however, the African Development Bank Group (AfDB) has taken over improving and developing agriculture within the nation.
In November 2010, AfDB introduced the Infrastructure Rehabilitation for Food Security Support Project (PRIASA). The aims of this project are to increase appropriate infrastructure and support rural communities in creating sustainable agriculture in Sao Tome and Principe. These efforts will increase crop production in these areas as well as create more jobs thus decreasing unemployment.
Improvements Already Underway
Sao Tome and Principe has already reaped benefits from the project in the last seven years. The nation has integrated gravity-fed irrigation systems, built greenhouses and created and installed solar dryers. All of these improvements can hopefully lead to the continued presence of sustainable agriculture in Sao Tome and Principe.
The project also helps support the infrastructure development needed to create sustainable agriculture. AfDB has roads, offices and modernized technology in Sao Tome and Principe, and so far, the project has reached over 10 thousand beneficiaries.
Training and Continued Development
Training is also a part of the initiative. Over 100 technicians and officials of the Ministry of Rural Development in Sao Tome and Principe have been specifically trained in how to sustain the developments made to the country’s agricultural system.
While improvements still have to be made before the nation can state complete sustainable agriculture, Sao Tome and Principe is definitely making significant headway. With the groundwork laid, Sao Tome and Principe has a strong chance of making themselves a prosperous and fortified country.
– Courtney Wallace
Photo: Flickr
National and International Efforts to Increase Credit Access in Peru
The access to bank accounts is not what first comes to mind when one thinks of privilege, but this issue is a major reality for numerous countries. Amongst these countries lies Peru and its amount of accessible bank accounts and credit access for the financial institutions in the country.
Lack of Bank Accounts
Despite Peru possessing the fastest-growing economy in their region, having a bank account is not a common occurrence amongst the population. This lack is due in part to the absence of information available to people about their bank accounts, as well as services of banks being severely limited. These instances contribute to a common theme among Peruvian banks that incites little incentive in the citizens of Peru to create accounts.
General Absence of Financial Literacy
The lack of financial literacy in the country is another problem with credit access in Peru. Many Peruvians don’t have savings in a bank of any kind, and only 40 percent of people know how to calculate annual interest rates. With little to no financial literacy, Peruvians have a hard time putting their trust into financial institutions, especially when those institutions aren’t forthcoming with information about accounts.
Banks Withhold Information
For the citizens that do have bank accounts, their financial situation is not much better than citizens who do not because the banks of Peru often conceal information from the public about their own accounts. These instances make it hard for citizens to put their trust into banks, as these institutions are the ones keeping private information that should be available to account-holders.
Credit Impacts to Lower Income Individuals and Communities
This is especially crippling for the lower-income citizens. Those citizens with less substantial income, and who put their trust in banks have a very hard time finding out what their account balance is. This could have a supremely negative effect on families that do not have much and cannot afford to overdraft their account and go into debt. They would not know when their account was low, and therefore never know if they overdraft the account until it is too late.
The lower-income communities are also the communities that are comprised of lower education rates, an instance which is directly correlated to the lack of financial literacy in the citizens of those same neighborhoods.
The Grupo Monge and Credit Access in Peru
Despite their lack of financial literacy, the Grupo Monge (GMG) works with the Entrepreneurial Finance Lab (EFL) to help people with no previous credit history become financially literate and create bank accounts within the financial institutions of Peru. These efforts have the potential to help almost 12 million citizens of Peru.
The GMG has helped create bank accounts for more than 3,000 citizens without credit access in Peru. This fiscal growth increased the Peruvian market for financial institutions and helped many citizens become more financially literate in securing and monitoring their finances. These changes will have a positive effect on the Peruvian economy because with more citizens contributing to the credit of the country, the nation should continue to grow as a result.
– Simone Williams
Photo: Wikimedia Commons
6 Major Reasons for How and Why Social Enterprise Works
Traditional businesses measure their success by profit and how much they can bring shareholders. Social enterprises have multiple bottoms lines: profit, people and planet. Profit is important in sustaining a business, but the idea of corporate social responsibility (CSR) is gaining in popularity. Consumers educate themselves on products which leads businesses into action. Focusing on multiple areas of business (triple bottom line) is the crucially important reason why social enterprise works.
The Traditional Standard: Profit
Profit is an excellent measure of growth and is quantifiable. A business that has a surplus by the end of the year means bills were paid and employees provided for. It doesn’t hurt that investors or shareholders see a return on their money. If there is profit, that means the company is an asset to the economy; this then means more customers, more employees and more investors overall. This business detail remains a critical factor in why social enterprise works.
The Growing Standard: People
People want to be happy, and as most of a person’s waking hours are spent at work, these two aspects of life are thereby deeply intertwined. It’s becoming common knowledge that a happier employee means a more productive workplace. An employee who feels empowered and enjoys what they do generally equates to higher productivity and profitability.
Success with people can lead to 65 percent in higher share prices and 100 percent more job applications for the company.
The Growing Concern: Planet
Consumer understanding of the planet’s dwindling resources are slowly impacting their buying habits. There hasn’t been a huge move towards green living, but some like social enterprises make this a priority along with profit and people. A new awareness day, Overshoot Day, marks the calendar for when humanity has used up Earth’s resources for that year.
From 2000 to 2017, Overshoot Day crept up from late September to early August, almost by two months. Social enterprises have noticed this trend and are now making moves to change it through sustainable resources.
A Moral Solution: Changing the Trajectory for an At-Risk Individual
Many businesses might choose a social entrepreneurial path because there is an issue the organization wants to address. At the heart of freedom businesses (a subgroup of social enterprises) is the goal to hire at-risk individuals. Some businesses like Purnaa, a manufacturing business in Nepal, were inspired to create opportunities for marginalized people and survivors of exploitation. Others like Papillion Enterprise, an Artisan shop in Haiti, wanted to prevent orphans through job creation.
Using Resources to Continue the Process
A difficult move for many small social enterprises is growth, particularly in some countries outside of the U.S. There might not be property to mortgage against or the interest rate would kill the purpose. Some social enterprises — like Kairos Trader — use profits and fundraising to provide 0 percent loans to social enterprises. As business grows and money is repaid, the loan can then be cycled into another loan to help social enterprises start or step up.
Economic Growth: The Ripple Effect
This list would not be complete without mentioning social enterprises’ impact on economic growth– freedom businesses’ commitment to marginalised people and the Earth is why much of its social enterprise works.
Communities that may have been jobless or ostracised now have opportunities. Those with jobs are able to educate their children and become consumers which grows consumerism on a generational scale building the economy with it.
According to Matt Peterson, founder of Kairos Traders, every sector is needed to make a change for people and planet, but business offers a unique solution. It can seem counterintuitive to have a triple bottom line, but success is proving why social enterprise works.
Profit is needed to be able to grow and provide jobs and materials, but a business that bases its impact on community and planet is a more holistic approach that will bear more fruitful results.
– Natasha Komen
Photo: Flickr