The 2nd German Social Entrepreneurship Monitor (DSEM) shows that working for a more sustainable future is the most important driver for social entrepreneurs.
Climate change, social division, the upheavals of digital transformation, and an aging society — the future brings with it major societal challenges. What roles do Social Entrepreneurs? And what challenges are they currently facing?
The annual DSEM aims to provide answers to these and other questions. The study surveys social entrepreneurs about the status of their business or organization.
Education, sustainable consumption and health
Among the diverse areas of impact, education, sustainable consumption, and health dominate. Nine out of ten social entrepreneurs develop a German-wide market innovation, thus demonstrating the sector's high innovative power. Almost half of the founders are female.
"More and more people in Germany are founding companies for a socially sustainable future. In the DSEM, we show what makes these companies so special and what challenges they face,"
says Katrin Elsemann, Managing Director of Social Entrepreneurship Network Germany e. V. (SEND).
In order to achieve the greatest possible impact with their ventures, the study shows that profits are essentially reinvested for the purpose of the organization and that holistic approaches are taken.
Furthermore, New Work plays a major role: topics such as transparent salaries or the involvement of employees in strategic decisions are lived by the participants of the study.
Biggest hurdles for social entrepreneurs
The biggest hurdles for social entrepreneurs are a weak lobby, insufficient targeted follow-up financing for successful projects, and the difficult-to-understand allocation of public funds. The lack of a suitable legal form is rated as a relevant hurdle by half of the participants. Political support is again rated poorly. Markus Sauerhammer, 1st Board Member at SEND:
“After the coalition agreement highlighted the increasing relevance of social entrepreneurship for solving social challenges and promised better support from the government, it is time to finally improve the framework conditions for social enterprises.”
