Social entrepreneurship in South Africa is more than a buzzword—it’s a movement igniting real, sustainable change. Amidst high unemployment, inequality, and environmental challenges, social enterprises are stepping up where traditional businesses and governments often fall short, offering innovative solutions that transform communities.

If you’ve ever wondered how you can make a difference while earning a profit, social entrepreneurship is your answer. This isn’t just a fleeting trend; it’s a dynamic way to shape the future of business in growing economies.

Here are 5 compelling reasons why now is the perfect time to elevate your involvement in social entrepreneurship.

1. A growing impact with real numbers

Social enterprises are uniquely positioned to tackle some of the country’s most pressing problems. Research suggests there are over 140,000 social enterprises in South Africa, contributing significantly to economic development and employment creation. Across Sub-Saharan Africa, social enterprises are estimated to generate between 28 and 41 million jobs, demonstrating their potential to drive inclusive growth and prosperity (World Economic Forum). These businesses are not only delivering services but also creating jobs and empowering communities.

2. Transitioning into social entrepreneurship: how to start

Whether you’re a traditional entrepreneur seeking greater impact or an NPO leader exploring profit-making activities, transitioning into social entrepreneurship can be a game-changer.

Here are key steps to get started:

  • Define your mission and market: Identify the social issue you want to address and understand your target market. Social enterprises thrive when they clearly articulate their purpose and the impact they aim to deliver.
  • Choose the right legal structure: In South Africa, social enterprises can operate as Non-Profit Companies (NPCs), Private Companies, or hybrid models. Each structure offers different advantages and determines how you raise funds and reinvest profits(GIBS SEP Brochure).
  • Develop a sustainable business model: Balancing your social mission with a viable business strategy is essential. Explore diverse income streams, including sales, grants, and partnerships, to sustain and scale your impact.

3. Why it’s worth the shift: the perfect intersection of profit and purpose

Social entrepreneurship offers a unique opportunity for entrepreneurs to combine business success with social good. For entrepreneurs, integrating a social mission into your business can attract conscious consumers, differentiate you in the market, and even open doors to impact investors. For NPOs, introducing profit-making activities can reduce reliance on donor funding and provide a steady revenue stream that fuels your mission.

As the World Economic Forum highlights, social enterprises in Africa “are not just a force for good but a business imperative” in today’s evolving economic landscape. They help address societal gaps where government and private sector efforts often fall short (World Economic Forum).

4. Supportive legal structures for transitioning enterprises

In South Africa, social enterprises can operate under various legal structures, including Non-Profit Companies (NPCs), Private Companies, Co-operatives, and Business Trusts. Each structure has distinct benefits: NPCs are ideal for mission-driven goals with restrictions on profit distribution, while Private Companies offer flexibility and the ability to attract investment.

The hybrid model, which combines elements of for-profit and non-profit entities, is particularly advantageous for transitioning into social entrepreneurship. It allows organizations to generate income through commercial activities while reinvesting profits into their social mission, balancing financial sustainability with impact. This model simplifies the transition for NPOs looking to incorporate profit-making activities, enabling a seamless blend of purpose and profit within a single operational framework.

5. Personal satisfaction

While this reason may seem selfish to some, this may be the perfect reason why others would want to final invest in growing their social enterprises. Growing up in South Africa, many of us witness the challenges our communities face, from poverty to lack of opportunities. This deep-rooted desire to see change is what drives many towards social entrepreneurship.

As Mahatma Gandhi said, “Be the change you wish to see in the world.” Social entrepreneurship uniquely blends the pursuit of profit with a commitment to purpose, allowing individuals to create impactful businesses that not only provide personal satisfaction but also contribute to a better world for our children—a legacy of positive change and sustainable impact.

The Big Question, is social entrepreneurship profitable?

Yes, social entrepreneurship can be profitable. While the primary goal of social enterprises is to create positive social or environmental impact, they also aim to be financially sustainable. Many social enterprises operate with business models that generate revenue through the sale of goods, services, or innovative partnerships, allowing them to reinvest profits into their mission. With the right strategies, such as hybrid models that blend non-profit and for-profit elements, social enterprises can achieve both financial success and significant impact.

How the GIBS social entrepreneurship programme can elevate your efforts

The Gordon Institute of Business Science (GIBS) offers a tailored Social Entrepreneurship Programme (SEP) designed to equip aspiring and existing social entrepreneurs with the skills, knowledge, and networks needed to succeed. This programme bridges the gap between profit and purpose, helping participants develop strategies that are both impactful and financially sustainable.

Key benefits of the GIBS SEP:

  • Practical learning with real-world application: through action learning projects, participants apply theory directly to their ventures, ensuring that learning translates into action.
  • Comprehensive skill development: the programme covers essential topics like finance, impact measurement, and marketing, specifically tailored to the needs of social enterprises. Participants learn to use the Social Business Model Canvas, a tool that helps operationalize and sustain their business strategies (Gibs SEP Brochure).
  • Expert guidance and mentorship: learn from industry experts and seasoned social entrepreneurs who understand the unique challenges of operating in the South African market. Mentorship provides personalized support that can help you navigate your entrepreneurial journey.
  • Building networks and partnerships: the programme offers networking opportunities with like-minded individuals, potential partners, and investors, opening doors to collaborations that can amplify your impact.

GIBS SEP: A game-changer for aspiring social entrepreneurs

Successful social entrepreneurs are often defined by a unique mix of skills, including financial management, strategic thinking, and innovative problem-solving. The GIBS SEP is designed to build these competencies, offering a structured environment for learning, experimentation, and growth. As one programme alumnus noted.

The SEP at GIBS not only provides the tools to build a successful social enterprise but also connects participants to a supportive ecosystem that continues to offer value long after the programme ends.

Join the movement: your next step towards purpose and profit

Social entrepreneurship is the perfect meeting point of profit and purpose. Whether you’re looking to integrate social impact into your business or introduce revenue-generating activities into your NPO, the GIBS Social Entrepreneurship Programme offers the guidance, skills, and networks to elevate your efforts.