Lanka Social Ventures identifies 20 SMEs for incubation

by Rohana Jayalal

Backed by initial capital and expertise from Oxfam GB, Lanka Social Ventures (LSV) has identified 20 SMEs for incubation from across the island since its founding in December 2014 and each SME will be allocated a trained advisor on social entrepreneurship, and during the incubation period which lasts up to 10 months, entrepreneurs will be given classroom training, field visits and peer-to-peer training, LSV, CEO, Dr. Lalith Welamedage told a seminar on 'Social Entrepreneurs' at the auditorium of the Ceylon Chamber of Commerce at Nawam Mawatha, Colombo 2.

Social enterprise hubs would also be set up in partnership with the Ceylon Chamber of Commerce, regional chambers and professional bodies, he said.

Dr. Welamedage said, "To be eligible for the incubation program, SMEs should be less than three years old, with clearly set environmental and social benefits, and have extraordinary leadership, vision and entrepreneurial drive while women and young people will be given priority."

"Another 40-60 others are waiting for advisors, but we are also looking for aveneues for funding, either from banks or other sources," he said.

The business model of LSV would revolve around investing in social entrepreneurs, and using the profits to fund the incubator and accelerator programs of start ups. LSV hopes to initiate incubator programs for agribusiness, women, and university graduates in the coming years, Dr. Welmedage said.

"LSV, the pioneering local body for incubating and accelerating socially and environment-friendly small and medium enterprises seeks support to broaden operations. We're happy to work with anyone to pass the message and stimulate social entrepreneurship," he said.

British Council Partnership and Innovation Head, Eranda Ginige said that social entrepreneurs, like other entrepreneurs, have been around for a long time, and make a significant contribution to the economy and more importantly, to society.

They change lives, society and more of them are needed to ensure a vibrant economy and fair society, he said.

The recession in the West, highlights the weakness of an unfettered capitalist driven market. Even though capitalism creates great wealth it also creates great inequality, Ginige said.

Social entrepreneurs provide a solution as they address capitalism's shortcomings and unpleasant side effects by engaging with people who experience poverty and suffer from disadvantage and exclusion, he said.

Social entrepreneurs are driven like other entrepreneurs to work hard and build successful organisations but have the added motivation of pursuing a social purpose for the common good, Ginige said.

They bring an extra dimension to their work as they provide the glue of social cohesion and build social capital in areas not reached by the traditional economy, financial markets or Government, he said.

Today, social entrepreneurs are seen as an essential part of the mainstream economy as it is no longer considered unacceptable that capitalism creates wealth for a few at the expense of many, Ginige said.

"Social entrepreneurs have many things in common and will continue to be in the news for good reasons. They make things happen, improve people's lives and help build a better society and world. They change lives and we need more of them to ensure a vibrant economy and a fair society," he said.

Unfortunately, social entrepreneurship has not spread across Sri Lanka to date, with business owners and management still seeking to maximise profits at the cost of quickly depleting resources, Ginege said.

"Social enterprise is not identified as a sector right now in Sri Lanka. Eventually, maybe 10 years from now, we will have a social enterprise sector," he said.

In a country such as Sri Lanka, social entrepreneurs will help in the uplifting of the living standard of the marginalised sector and lower economic classes with little or no access to the resources needed to build their future, Ginige said.

Medical services is one of the areas which he is considering under his social entrepreneurship initiative by providing health and medical services to poor and marginalised people, they can enjoy a better quality of life, he said.

Good Market, Board Member, Dr. Amanda Kiessel and Oxfam GB Regional Economic Empowerment Manager Amith Vatsyayan said that there should be no compromise between profits and sustainability, adding that social entrepreneurs choose harder paths to make profits over easier alternatives.

According to the Global Impact Investment Network's recent report, investments into the sector in Sri Lanka has reached nearly US$ 800 million to date, and yet most of the capital has been absorbed by larger corporations due to the non-existence or lack of information on social entrepreneurs.