Ecosystem Matters: Lessons Learned From 14 Years of Driving Social Impact

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After 14 years of championing social entrepreneurship and social innovation, we’ve learned a few things. But one stands out above the rest: ecosystem development is everything. So why are so few investing in it?

It’s easy to pour funds into the next big idea, but without a robust ecosystem to support these innovations even the most groundbreaking social enterprises struggle to scale their impact. That’s why at SAP we’re putting our money where others won’t – into unrestricted funding for organizations such as the Global Alliance for Social Entrepreneurship, Catalyst2030, or the Social Enterprise World Forum (SEWF). These organizations are the backbone of social innovation yet often operate on shoestring budgets and tight resources. It’s high time we all recognize that building ecosystems isn’t an overhead, but essential infrastructure.

Ecosystem development isn’t just another way of funding organizations. Think of it as creating interconnected pathways that enable social enterprises to thrive. Over the years, we’ve discovered three critical areas where focused efforts can make a transformative difference: integrating social enterprises into supply chains, fostering radical collaboration, and empowering social entrepreneurs worldwide, especially the next generation.

Integration into Supply Chains: A Game Changer and the Biggest Lever

Integrating social enterprises into mainstream supply chains is our biggest lever. Through SAP Business Network, SAP runs the world’s largest B2B marketplace, where more than US$5.3 trillion in annual commerce is transacted across 190 countries. If SAP can help its customers shift a small percentage of that spending to impact business suppliers, we can create a significant financial investment in sustainable development.

As of November 2023, SAP Business Network recognizes verified social enterprises, and in less than a year the number of verified social enterprises on SAP Business Network has surged from 1,200 to over 4,400. Beyond the numbers, this growth is about creating real opportunities for businesses that prioritize social and environmental impact. By enabling these enterprises to identify themselves as potential sellers, we provide them with access to B2B opportunities, allowing them to scale their operations and increase their influence on global supply chains. In addition, we support a unified standard for social enterprises called the “People and Planet First Verification” in partnership with the Social Enterprise World Forum, which reaches social enterprise suppliers in more than 120 countries.

Frankly, this is not an altruistic move, but fulfills the cliché of a win-win situation. We’ve learned that by opening doors for impact-driven businesses to compete on a level playing field, we’re enriching the entire supply chain with innovation, sustainability, and social value. To help prepare markets for these kinds of trading relationships, we are hosting social procurement roundtables in multi-stakeholder settings and are also integrating social procurement into more customer-facing events and campaigns, helping to ensure our customers have the tools and resources to prioritize sustainability in their purchasing decisions.

Ultimately, when social enterprises succeed, we all win. Integrating them into supply chains transforms their businesses and ours, fundamentally changing the procurement system.

The Urgent Need for Radical Collaboration

Integrating social enterprises into supply chains is just one piece of the puzzle. Today, offerings to social enterprises are too fragmented. Non-profits, private sector initiatives, and governmental programs often operate in silos, duplicating efforts and diluting impact. Radical collaboration is something that’s needed on all ends.

That’s why, for example, we collaborate with Unilever, EY, and MovingWorlds to run the TRANSFORM Support Hub – an on-demand acceleration platform that provides personalized guidance, access to consultants, mentors, and coaches, and introductions to sales and partnership opportunities. We’re collecting and summarizing the offerings, breaking down barriers, and creating a location for unified support.

Just last year, 120 SAP employees completed 51 projects via the TRANSFORM Support Hub, providing pro-bono consulting to social enterprises and generating an in-kind contribution of $458,835. One of these employees was David Elliott, a senior user assistance developer who collaborated with Faces Up Uganda, a youth development NGO that uses arts and crafts education to help young people overcome psychosocial challenges and develop essential personal and professional skills. He leveraged his expertise to review the organization’s website and strategic plan, enhancing the communication of its vision, mission, and values, and wrote grant applications to help secure funding.

But collaboration must go beyond platforms. It requires a collective shift in mindset. It’s time we stop asking, “What new thing can I create?” and start asking “What can we achieve together?” and “What is already out there?”

To sum it up with a fact: 70.6% of young social entrepreneurs believe access to relevant global connections is critical to their work while 94.1% believe increasing collaboration with other organizations is important. So, corporations should start to open their networks and resources to connect industry experts with social entrepreneurs to foster the entire social innovation ecosystem.

Empowering the Next Generation of Social Entrepreneurs

While we are already talking about young social entrepreneurs, let’s not overlook them, as they are the future of this movement. They face unique barriers – limited access to funding, mentorship, and networks – that can stifle their potential before it even takes root.

We’re investing in programs that provide tailored support to young innovators. Through mentorship opportunities, capacity-building workshops, and access to our global networks, we’re leveling the playing field. Collaborations with organizations like Social Impact Award, We Are Family Foundation, and initiatives like Africa Forward can ensure that the next generation doesn’t just have a seat at the table, but is helping to set the agenda.

Let’s talk about Africa Forward, a critical step in our strategy to empower the next generation of African social entrepreneurs. Co-created by African members of Catalyst2030, this initiative is designed to advance progress on the UN Sustainable Development Goals and address the continent’s most pressing challenges through a partnership-driven approach.

This is about investing in long-term solutions by building a Pan-African data platform, promoting policy reform, and facilitating leadership training. Africa Forward is helping to create an ecosystem where social businesses can thrive. The goal is to enable a new wave of innovators, giving them the tools and opportunities they need to scale their impact. By focusing on capacity-building, youth training, and financial development, we’re laying a foundation for lasting change in Sub-Saharan Africa.

A Call to Action

So, after 14 years, what’s our biggest takeaway? Real change doesn’t happen in isolation. It happens when we invest in the connective tissue – the ecosystems – that empower social enterprises to scale and succeed. I’m challenging corporations, investors, and policymakers to rethink their approach. Don’t just fund the next shiny project; invest in the infrastructure that supports them all.

Why are so few willing to invest in ecosystem development? Perhaps it’s not as immediately gratifying as funding a new app or launching a big campaign to reach a big number of people. But if we truly want to tackle systemic issues – poverty, inequality, climate change – we need to dig deeper. We need to build the foundations that allow solutions to grow sustainably.

We’d like to invite you to join us. Let’s pool our resources, break down the silos, and build an ecosystem that accelerates social impact on a global scale. Together, we can transform not just businesses but entire industries.

So, here’s the question: Are you ready to invest where it counts? Are you ready to invest in social entrepreneurship ecosystems?