Securing Financial Fund for Social Enterprises

Relying on one source of funding is not a wise way for Edz Threadz or any other social enterprises. We need to find multiple ways to diversity the capital to create greater social impact. As the field of social entrepreneurship continues to mature, new trends in financing social entrepreneurship enterprises have emerged. Social entrepreneurs should seek funding by using a variety of financing sources such as government grants, international humanitarian programs, and seed funding.

The lighting for Africa enterprise is one a good example of how social enterprises can secure funding [1]. It is a social enterprise that aims to changeover kerosene lamps with lighting source that can be available to consumers of all economic levels of the society. It received initial funds in 2008 from several organisations. In addition, it received further $5.5 million fund last year, and recently won an award.

Another notable trend is social entrepreneurship awareness in the academic arena. Recently, universities have realised the importance of creating specific undergraduate and graduate programs that emphasise on social entrepreneurship. Such academic programs attract funders such as the Foundation for Youth Social Entrepreneurship which supports young social entrepreneurs globally [2].

One important way for Edz Threadz to secure a sustainable funding is to keep up-to-date data and to publish social and environmental achievement reports. Investors are more likely to fund and continue funding proven well-established projects that have great impacts on society and the environment. Some investors have started to use some financial tools to track their investment.

Marwan Albahar

[1] http://www.lightingafrica.org/

[2] http://www.fyse.org/