Global Innovation Index 2024 And Social Entrepreneurship

Posted 14 Nov 2024

Updated 17 Nov 2024

4 min read

Why in the news?

Recently, the Global Innovation Index (GII), 2024 was released by the World Intellectual Property Organization (WIPO), Cornell University and INSEAD Business School.

GII 2024: Key Findings

Theme: Unlocking the Promise of Social Entrepreneurship.
Criteria for measurement of innovation: Institutions, human capital and research, infrastructure, credit, investment, linkages; creation, absorption and diffusion of knowledge; and creative outputs.
Top ranking: Switzerland followed by Sweden, the US and Singapore.
India:
- India ranked 39^th among 133 nations, improving ranking by one position from 40^th in 2023 with a score of 38.3.
- India holds the top rank in both lower middle-income economies as well as the Central and Southern Asia region for Knowledge and technology outputs, Creative outputs, Institutions and Business sophistication.
- Bengaluru, Delhi, Chennai and Mumbai are among the top 100 S&T clusters.

Social entrepreneurship is a way to achieve the generation of economic wealth while addressing various issues like poverty, environmental sustainability and social injustice.
- It combines efficiency, innovation, and resources of profit-making entrepreneurs with the passion, values, mission, and concerns of non-profit organizations.

	Traditional Company	Social Enterprise
Mission/ Motivation	Generation of economic value by tapping the market opportunities and generation of social value being one of the ways of generating economic value.	Creation of social value by addressing social issues through creative problem-solving to create economic value.
Goal of innovation processes	To gain an economic and market edge over competitors and have greater market presence.	An inclusive and collaborative approach with community involvement with maximising the social benefit. E.g. Open-source knowledge
Utilization of surplus	To increase economic gains of stakeholders.	Reinvestment towards solving the social issue and forwarding the social mission.
Expected future changes	Evolving according to the market needs based on profit maximization.	Creation of an inclusive market, uplifting the excluded communities and prioritising the social impact.

Economic growth: Estimates suggest there are up to 11 million social enterprises and 30 million social entrepreneurs globally, contributing around USD 2 trillion to global GDP.
- The estimated market opportunity and potential for social enterprises in India is estimated to be US$ 8 billion by 2025.
Influencing Policy through expertise: According to a study of over 800 social entrepreneurs, 63% have achieved legislative change or influenced policy and 62% have provided research and or data to policymakers.
- E.g. Ethiopian policymakers collaborated with Tebita Ambulance (a social enterprise) to build emergency medical service standards and licensing system.
Sustainable development: Provide for a golden mean for ensuring sustainable development and meeting the Sustainable Development Goals (SDGs).
- E.g. SELCO, a social enterprise in India, provides sustainable energy solutions to under-served households and businesses.
Sensitization and engagement: Provides an opportunity of educating people about need for addressing societal issues with collective engagement along with economic development.
Integrate social innovation into Corporations: Aids traditional corporations in shifting from Corporate Social Responsibility (CSR) to Corporate Social Innovation.
Social transformation: Empowering of the vulnerable sections of society and tackling the rising economic inequality due to traditional business models.

An image depicting the impact of innovation on social entrepreneurship, including wider reach, creative problem-solving etc.

Atal Innovation Mission (AIM); ASPIRE – A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship; and Aatmanirbhar Bharat ARISE-ANIC program to promote research & innovation and increase competitiveness of Indian startups and MSMEs
Corporate social responsibility (CSR): Mandatory provision of Companies Act, 2013 for certain Companies to take up CSR projects towards social welfare activities.
Social Stock Exchange (SSE): Aimed at providing social enterprises with enhanced visibility and access to capital.
Social Impact Bonds: Innovative funding method capitalizing on the increasing investor awareness regarding the social and ecological impact of their investments. E.g. Green Bonds, Social Bonds, Sustainability Bonds, Skill Impact Bond etc.
- E.g. The Special Window for Affordable and Mid-Income Housing (SWAMIH) Investment Fund is India’s largest social impact fund.
The Social Innovation Programme: By NASSCOM foundation is a TechForGood initiative that fosters inclusion for all by providing a platform for young social innovators to turn their ideas into reality.

An illustration of various challenges faced in promoting social entrepreneurship such as financing and regulatory restrictions etc.

Conclusion

Social entrepreneurship and enterprises offer a transformative approach to tackling global challenges, by merging business innovation with social goals. By investing in supportive policies, infrastructure and financing, it is possible to create an environment where social enterprises thrive, driving sustainable development and creating lasting positive impacts on a global scale.