WEF: How Social Enterprises Are Bridging The Digital Divide
Global efforts to address climate change and digitalisation are reshaping economic structures, creating new markets and disrupting traditional industries.
It’s no secret that these transitions present both opportunities and challenges for businesses and communities worldwide, with concerns growing about equitable access to emerging opportunities.
In this light, the social enterprise sector has emerged as a significant economic force, generating more than US$2tn in annual turnover and positioning itself to train 200 million people for roles in sustainable industries, according to a WEF report released in partnership with Deloitte and the Schwab Foundation for Social Entrepreneurship.
The findings come as governments worldwide implement policies to meet carbon reduction targets and manage technological transformation.
For instance, countries including the UK, France and Canada have introduced legislation recognising social enterprises, as distinct legal entities, acknowledging their role in addressing economic disparities during technological and environmental changes.
The report, titled "Unlocking the Social Economy: Towards Equity in the Green and Digital Transitions", examines how these organisations can support inclusive economic development, highlighting mechanisms for extending the benefits of technological and environmental advances to communities traditionally excluded from economic progress.
Social enterprises bridge digital divide as internet access lags
The digital economy represents 15.5% of global GDP, yet 2.6 billion people lack reliable internet access.
This digital divide exists alongside energy poverty, with 760 million people worldwide living without electricity access.
Daniel Nowack, Head of Social Innovation at the Schwab Foundation for Social Entrepreneurship and the World Economic Forum, says: “The green and digital transitions are not just about technology - they are about people and their agency to drive change.
“Social innovation is a tool that allows everyone to be an actor in these massive transformations - not just a subject to them.”
WEF forecasts US$10tn green economy growth
The green transition, focused on reducing carbon emissions and environmental protection, could create US$10tn in business opportunities by 2030, according to WEF projections.
WEF also indicates this could generate 395 million new jobs in sustainable industries.
Meanwhile, social enterprises, which number approximately 10 million globally, are developing programmes to ensure these opportunities reach underserved communities.
These organisations are set to make US$1.6tn in finance available through impact investing, microfinance and financial technology solutions.
The businesses employ strategies including tiered pricing models and circular economy practices - systems designed to eliminate waste and encourage continuous resource use - to increase access to essential products and services.
This approach aims to extend the benefits of environmental and technological advancement to communities traditionally excluded from economic development.
Social enterprise policy framework gains government support
WEF also outlines policy recommendations for governments to accelerate social enterprise growth, which include implementation of dedicated sector action plans, creation of tax incentive structures and introduction of subsidies for essential products.
Government procurement processes should incorporate social impact criteria, according to the recommendations.
WEF additionally suggests public sector bodies can shape market development through investment decisions that consider both financial and social returns, emphasising the importance of collaboration between public and private sectors to address transition challenges.
This includes development of skills training programmes targeting marginalised populations and creation of funding mechanisms for social enterprises and financial inclusion represents a key focus area for the sector, as social enterprises are expanding access to banking services through technology platforms, enabling participation in the digital economy for previously unbanked populations.
WEF further identifies employment and skills development as central to achieving equitable transitions, as social enterprises are implementing training programmes designed to prepare workers for roles in emerging green and digital industries, with a focus on reaching underserved communities.
These organisations are also working to make essential products and services more affordable through innovation in delivery models and pricing structures, which includes development of new distribution channels and payment systems adapted to local market conditions.
Daniel says: “Social entrepreneurs are leading change by creating resilient jobs, expanding access to essential services and strengthening the foundations of a fair and equitable economy.”
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