Local issues, local solutions; social issues, social solutions

Revisiting history to assess how countries and nations have developed and advanced will make one fact quite evident that the significant changes and improvements were not induced externally but were a result of the right use of the available resources — be it material or human, internally. Also, it makes a logical sense that using something rightly available with the intrinsic confidence of ownership is far convenient and less risky than borrowing it, which will be complemented by the inefficiency of time and cost in addition to all other associated risks and fears.

The social challenges faced by Pakistan need indigenous social solutions. Like any other country in the world, mere effort by the government will remain inadequate to take care of the increasing social needs of a fast growing population. Thus, missing the required wholesome impact for a larger wellbeing. A joint effort to make use of both public and private resources has helped many countries to respond to the daunting social challenges, and in such successful experiences are lessons for Pakistan to learn by following the international best practices. Of course while moulding them to adapt to the local resources and needs, in the area of social innovation and entrepreneurship.

0A Reuter’s expert poll analysis ranks Pakistan among the top 20 countries with the most favourable environment for social enterprises to start and grow. It refers to the availability and growing strength of the support structure needed for such social start-ups. The confidence of angel investors — a critical stakeholder in any innovative and risky undertaking — on the social entrepreneurs in Pakistan is improving. The socially responsible youth is seen motivated and committed to fill in the gaps left by public service organisations. But, at the same time, Pakistan is ranked significantly low on the indicators measuring government policy support for social enterprises. For the ease of access to grant and funding for social enterprises, Pakistan is ranked 25^th among the 45 countries included in the expert poll. South Korea, Singapore and France top this list with proper regulations for social enterprises.

A UNDP report estimates that 23% of the youth in Pakistan, more than 12 million individuals, want to start as entrepreneurs but they lack information regarding the rules, regulations and procedures. With a bulging youth population, 64% of the population under the age of 30 years, rapidly increasing internet penetration — more than 100 million subscribers including 56 million 3G/4G users and 58 million broadband users based on the data of the Pakistan Telecommunication Authority (PTA); and mushroom growth of mobile users in the country — more than 150 million mobile phone subscribers according to the PTA, all are setting up an ideal stage for social entrepreneurs to play an effective role in Pakistan by bringing innovative and social solutions to its long-standing social problems.

Formal angel investors and seed funding organisations can be seen in major cities of the country. The trend is catching pace, and there are some efforts from the public sector as well though without proper ownership and direction. However, Pakistan lacks any kind of regulatory infrastructure to separate social enterprises from commercial enterprises, which cannot be termed intentional or due to the lack of concern for social enterprises. Rather it is a result of insufficient understanding of this new phenomenon that is helping many countries in the world to address their social problems successfully. The way a lot of policy and respective regulatory effort was made for Small and Medium Enterprises (SMEs) in the country with as formal a support as establishing an SME Bank, a dedicated policy focus and specialised financial and regulatory products, primarily related to incorporation and taxation, would be needed for encouraging and supporting social entrepreneurship in Pakistan.

The magnitude and scope of social problems is becoming large and complex, inviting smart solutions matching the scale. There is a need to design and develop focused and innovative social products and social spending mechanism, having a well-defined social mission and social purpose. This great and innovative concept of income with social outcomes based on the principle of value creation versus value appropriation is an ideal opportunity to combine the goals, following an inclusive approach by the public and private sector players. For such initiatives, looking for sustainable and practical solutions for social problems that are either neglected by the public sector or it lacks the ability and resources to address them should be a priority area for social enterprises. The other areas of focus for social entrepreneurs are the ones with the least interest of commercial entrepreneurs but larger social outcomes for the general public.

The government should look for local partners for local problems to deal with social challenges domestically. It would not only have an immediate and expanded impact but will also prove to be cost effective, saving on high consulting and advisory expense made on international consultants — a situation that usually becomes obligatory when the donor funding is involved.

Based on its critical importance, social innovation and entrepreneurship deserve proper attention of the policymakers in Pakistan, calling for well-designed policies in the area that can help the country sail through its never-ending challenging situation without looking outside for help. The untapped potential and utility of this internal strength, wanting to sprout but suppressed amid fears of regulatory compliance and associated exploitation, could be maximised by purposeful policy interventions and an enabling environment supporting growth of social enterprises.

Published in The Express Tribune, August 11^th, 2018.

Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.