Se Support Needs Assessment
Se Support Needs Assessment
Assessing The Financial And Non-Financial Support Needs Of Existing Social Enterprises
This report presents the study undertaken by Beyond Group under the “Social Entrepreneurship Ecosystem Change” (SEE Change) project.
SEE change is a project funded by the EU and implemented by Oxfam, COSV and Beyond Group. The project focuses on social entrepreneurship as a tool to support local development and enhance social stability. The consortium aims to strengthen SEs to respond to the social and economic situation in Lebanon and advance the legal and institutional framework for SEs.
The aim of this study is to provide a comprehensive analysis of the support needs of SEs currently operating in Lebanon. It intends to give input on current challenges faced by existing SEs and support needs of the sector to overcome those challenges, it aims as well at enhancing the ability of Social Enterprise Support Organizations (SESOs) and ecosystem stakeholders to address these issues with greater knowledge and ability to respond.
Findings were based on a general literature review, 20 semi-structured interviews with key informants in the ecosystem, and a web-based survey through which 56 responses from SEs were recorded. The sample was, with a good spread of geographical location (North, Bekaa, Beirut and Mount Lebanon), covering a wide range of sectors and all SE progress phases along the business development cycle. SEs interviewed as well as survey participants had all reported a joint objective of realizing social impact along with financial revenue and sustainability.
The study provided rich data on the social entrepreneurship sector and its ecosystem, demonstrating the resilience of social entrepreneurs and an unaffected commitment to their organizations’ missions, as well as an understanding of their current challenges and needs for support. Under the current financial crisis, access to finance that is focused on developing the viability and sustainability of SEs is a crucial part of developing the ecosystem.
Findings show that the financial crisis, health crisis, political instability and unsecure environment are highly affecting the SEs development. The lack of a legal form for social enterprises and the absence of governmental support, along with the lack of financing and investment are as well amongst the main obstacles faced by SEs.
The main recommendations arising from the analysis focus on 3 main priorities.
Developing Stronger Organizations
Provide more flexible tailored and impact-oriented arrangements for funding which are needed with adequate funding geared towards business growth development. This is mostly critical in post-start-up core funding that would allow SEs to develop their business.
Ensure business support is tailored and focused on developing SEs as sustainable businesses. More social entrepreneurship programs and support organizations where people have access to tailored funding coupled with tailored SE support should be available to ensure organizational sustainability and growth.
Address human resource capacity-related challenges, as social enterprises face problems in recruiting and retaining talent, while highlighting the need for training teams on managerial skills.
Realizing Market Opportunity
Facilitate access to new national and international markets. Whether regional or international, SEs require support in business development and marketing to access new markets. The decrease in revenue and the subsequent actual and perceived increase in costs, as a result of the devaluation of the Lebanese pound have rendered the Lebanese market unsustainable, and hence support to accessing new markets becomes integral.
Enable more consumers and businesses to understand and purchase from social enterprises with better marketing for the private sector to overcome apparent prejudices and include SEs as partners. There exists a need as well to address the cultural gap from the client point of view and to implement ways to encourage people to buy SEs’ services and products.
Stimulating Social Entrepreneurship
Promote awareness and understanding of the social entrepreneurship concept. Step-up the level of recognition of social enterprise sector nationally and build links with others working towards the same goals regionally and internationally.
Support the creation of local social innovation hubs and co-working spaces that aim at creating social investment-ready businesses.
In addition, actions need to be taken at the macro and meso levels of the ecosystem as well:
Encourage collaboration and complementarity among social entrepreneurship ecosystem players to further organize and channel resources in the most efficient and impactful way to avoid efforts duplication.
Build the capacity and empower SESOs to better provide tailored support to SEs, while addressing the support needs of the ecosystem, and enabling SEs agility and innovation in response to the constantly changing contexts.
Join advocacy efforts towards the development and adoption of a social entrepreneurship strategy and legal framework in Lebanon.