Emergence of Social Enterprises in India

Like rest of the world, Indian economy has also suffered major setbacks during the global financial crisis. Employees have either faced salary cuts or they have lost their job. The present financial meltdown has also resulted in sudden cutback in expenditure by companies. If experts are to be believed, financial crisis is the end result of the irresponsible activities carried out by the corporate sector, even though not all are to be blamed.

The present need is to encourage medium and small sized social enterprises that will help the country come out of this situation. Since these enterprises work for social and environmental causes and re-invest their profits for community welfare, their vision can help any economy sail through financial crisis. The existing sector of growing social enterprises in India can prove extremely beneficial in delivering required services on the community level. Even though India is a developing nation, social enterprises have been very active in fulfilling social and environmental causes. Whether it is the Barefoot College,Nidan or SELCO, social enterprises in India have managed to make a significant difference to the lives of urban and rural population.

Sadly, many such enterprises have been hard hit by the current economic downturn. Regular funding and support from government and businesses is required for the smooth functioning of these enterprises. The private sector plays an important role in the creation as well as promotion of social enterprises. Experts believe that even though the downturn has caused many such enterprises to close down, social enterprises will continue to generate more business value and help the economy get back on track. With government's support, such enterprises are striving to deliver new products and services. Along with the generation of business value, entrepreneurs are also addressing pressing issues of the society. Due to the success of social enterprises during recession, many private firms have also realized the benefits of adopting socially responsible initiatives. They have been compelled to think beyond profit making and implement sustainable business strategies, taking social and environmental causes into consideration.