Public Policy for Humanitarian Impact

One of this week's articles - The Funding Gap - highlights today's pressing issue of how social enterprises struggle to find financing. While such enterprises clearly have the advantage of getting the best of both for-profit and non-profit worlds, the same factor puts them at a disadvantage when it comes to raising money. This is known as the funding gap, and I would like to discuss how visionary public policy can be the one major element that will help address this gap.

When we talk of capitalism, the whole idea of social entrepreneurship is no doubt a new concept. The obvious reason, as stated in the article, is because commercial investors question the underlying mission of the social enterprise. On the other hand, profit-making social enterprises may sound dubious to philanthropists. Caught in the middle is the majority of social enterprises that have good intentions.

It is apparent that governments of most developed countries have embraced the idea of social innovation and growth. However, the need of the hour is not just vocal support and encouragement but policies that are conducive to these entrepreneurs. The article, towards the end, discusses this point from a long-term research perspective. While research certainly is a requirement, the impact is happening now, which is why we need the government to come forward today and design public policy that enables both commercial investors and philanthropists to invest in social enterprises. At this moment, the motivation for technologists and businesspeople to help the society is running high, as is obvious from the numerous examples we have seen. Would it not be ideal for the planet if policymakers acted now?

Difficulties and challenges are many, but despite everything I have a firm belief that social entrepreneurship will see lesser and lesser obstacles in future. When Walmart had to happen, it did in spite of insufficient regulations to support it. So did Microsoft and Apple when hardly any layperson or big businesses backed them. Now we're talking about companies that go out and save people, feed kids, eradicate diseases and create livelihoods for those who live with under $1 a day. Is there anyone seriously willing to hinder this, especially policymakers?

If it is true that history repeats itself, we can look forward to a period where each day society's problems are increasingly solved by social businesses. As discussed, if supportive policies are designed sooner than later, our world will be a better place.