Social entrepreneurs in the Middle East are often misunderstood. They create more and more businesses that address social problems in the region, but they keep getting asked if they run a charity or a non-profit, writes May El-Habachi.

Despite aiming to make a profit, social entrepreneurs are also motivated by their desire to drive positive changes in their societies. Unfortunately, they usually have to explain what they do, whether they are trying to solve environmental problems, improve access to education and healthcare, or promote female employment.

According to the Schwab Foundation, social entrepreneurs are defined as individuals who use business practices and principles to solve social problems, operating either as a for-profit or non-profit enterprise.

Regardless of the prevailing confusion, some social entrepreneurs are successfully running their ventures while making a difference in their communities. They achieve it by focusing on three key areas.

KNOW YOUR PITCH

Entreprenelle, a social enterprise that helps women start their own businesses, was often mistaken for a non-governmental organisation (NGO), according to founder Rania Ayman.

“People often thought that Entreprenelle was an NGO, especially during our first year. Some even thought that I just say we support women to get money. They couldn’t understand why I created a business to help women,” Ayman says.

To address this issue, she spent the first year simply explaining the concept of her social enterprise.

“When we pitch, we always say that we support women to start their own businesses. People got used to business getting something in return for money. That’s why when we talk about Entreprenelle, we say it [is] a social enterprise, and that it is also a business,” explains Ayman.

Through her focus on raising awareness of the concept, Ayman was able to reach her customers and increase her range of services over the years. She has currently prioritised creating valuable content to help her clients launch their own businesses. 

THINK LIKE AN INVESTOR

Shady Khalil, a co-founder of Greenish, struggled with attracting investors in the early stages of his social enterprise, which is dedicated to raising awareness about environmental issues.

To grow his company, Khalil had to learn to think like an investor. Besides joining incubators, he changed his language when speaking with investors. Instead of only quantifying the social impact, he now also focuses on the bottom line.

While financials are important, he places equal weight on meeting his goals ethically. “If there’s a better way that I can achieve my goals while acting ethically and making an impact, even if it will take longer, I will take that road,” Khalil insists.

He regularly gives talks and attends networking events to meet new investors and raise further the profile of his business. As the entrepreneur explains, he likes to know the values of investors as it affects the way they work and make decisions. “Even if we won’t be working together now, it might be useful in the future.”

ADD VALUE

Another social entrepreneur, Mohamed Zohdy, says that the key to growing his business was putting customers first. Zohdy is a co-founder of Bekia, a company which encourages people to recycle by offering vouchers, gift cards and home provisions in exchange for inorganic waste.

“Always look to what benefits your customers first, not yourself. As long as you benefit your customers, you will get good returns and be able to make a positive impact in the community,” he explains.

Given the limited awareness about recycling in Egypt, Zohdy struggled with getting people to separate their waste and keep it for him to collect instead of handing it to garbage collectors. Through his rewards programme, he gives customers an incentive to recycle. “With the increase in prices, many appreciate the small token of free metro tickets, home provisions and gift vouchers. They feel that I added value to them.”

Whatever problem these business leaders are trying to solve, they have proven that it is possible to create an enterprise which benefits society while also generating profits. Ayman sums it up best when he says, “It’s ok to run a business and make an impact at the same time.”