Every business is set up with a purpose to grow and create wealth. Whether they are seeking quick profits or expecting sustainable growth, businesses always aim to operate on their pre-defined principles.
In today's world, entrepreneurs aren’t only looking to start a business for a profit-making purpose but also to learn and evolve as professionals in the social enterprise ecosystem.
The United Arab Emirates is increasingly gaining popularity for its vibrant business culture. Primarily thanks to its business-friendly policies or tax-friendly laws by the UAE government.
What is a Social Enterprise?
A social enterprise or social venture is a business that is operating with a mission to create a healthy environment, or partake in social service, etc. On the surface, it may appear like a nonprofit charitable organization, but it is more than that.
Charitable organizations or trusts usually depend on donations but social enterprises are self-sustainable. Social enterprises manage to get revenue while tackling social or environmental issues. They believe in the long-term impact of the business on the environment. Since the world is fast evolving at an increasingly unsustainable pace, the need for sustainable business models has arisen, now more than ever.
There has been a worryingly high number of businesses that have caused excessive damage to the environment in their quest for increasing profits. Modern-day entrepreneurs have started to realize that it is their collective responsibility to look out for the environment, and not only focus on making a business profitable.
What makes Social enterprises different is the prioritization of financial health and Social objectives. They have a very clear social objective, but they make a profit to keep the business running, enabling those organizations to be self-sustaining and less reliant on external funding.
Social Entrepreneurship in Dubai
The number of registered Social enterprises in the United Arab Emirates has increased by 30% as of 2023, indicating the growing need for companies that strike a balance between profit and a greater purpose.
The UAE government has played a significant role in fostering this expansion through programs like Ma'an, which offers capital, assistance, and certification to businesses that exhibit social value. This emphasis is in line with the larger national objectives of economic diversification and sustainability.
Thrift for Good is one such social venture in Dubai that sells second-hand clothes to fund children's charities. This is in itself a means of creating socially as well as environmentally sustainable practices by reducing waste and promoting recycling.
What is the Ma’an Funding Initiative in Dubai?
The Ma'an Initiative in Dubai, established by the UAE government, is dedicated to fostering social innovation and entrepreneurship. It operates under the funding and support of the Authority of Social Contribution.
It gives companies the tools, money, and mentorship they need to address social problems and develop long-lasting solutions through initiatives like the Ma'an Social Incubator (MSI).
Such programs are in line with the national priorities of the UAE and the UN Sustainable Development Goals, encouraging a positive impact through innovation and sustainable social enterprises.
What Makes a Social Enterprise Different from Other Kinds of Charities or Positive Organizations?
As mentioned earlier in the blog, there is a fine line between a social enterprise and a non-profit organization. Non-profit organizations usually depend on charity and don’t run with a business mindset. On the other hand, social enterprises make profits while serving the community.
For example, think about fair-trade companies against conventional nonprofit businesses. Fair-trade organizations ensure that producers or makers are well compensated while remaining feasible businesses through a model of social enterprise.
Organizations adapt or blend into hybrid models when they target further social objectives while maintaining the business character. Social enterprises is another term to describe such hybrid organizations, or MSME organizations offering a mix of business and social contribution models.
Registering in Social Enterprise in the United Arab Emirates
All the businesses in the UAE need to be registered through the same regulating authority. There isn’t a specific Social Enterprise License, acquiring a business license for social enterprises is as important as any other business activity. To acquire the license, entrepreneurs are expected to have a full understanding of their business segment and the audiences they tend to cater to.
These ventures can register under the common business pools that match their work, like trade firms, consultancies, or service providers.
At a time when many businesses are opening and shutting down due to a lack of strategy and understanding, we at Markai Corporate Services, always assist with best business practices that don’t only help businesses to understand their niche but also make a foolproof strategy to grow their business.
Whether it's a social enterprise or any type of business, the expert guidance by Markai Corporate Services ensures the correct flow to avoid any costly mistakes in your social enterprise journey.
