This podcast draws on work by Global Strategist, Sophie Krantz, on the economic potential in often-overlooked areas of innovation.
The World Intellectual Property Organization’s Global Innovation Index (GII) 2024 highlights the significant economic contribution of social enterprises and entrepreneurs. The report reveals that up to 11 million social enterprises and 30 million social entrepreneurs contribute approximately US$2 trillion to global GDP. These enterprises are successfully tackling social and environmental challenges while generating economic value. The report showcases examples of such enterprises from around the world, including:
Bandhu Tech in India, which uses AI to connect migrant workers with affordable housing.
Green Bio Energy in Uganda, which produces eco-friendly cooking fuel from organic waste.
Peek Vision in the UK, which provides mobile eye-health services in underserved areas of Africa and Asia using smartphone technology.
Thaki in the USA, which refurbishes laptops for refugee children, bridging the digital divide.
Community Design Agency in India, which involves communities in the design of sustainable housing projects.
The GII 2024 report identifies 19 economies as “innovation overperformers.” These countries, mostly located in Sub-Saharan Africa, Southeast Asia, East Asia, and Oceania, demonstrate a capacity for innovation that surpasses their economic development levels. This trend suggests a shift in the global innovation landscape, with developing economies playing an increasingly prominent role.
Several factors are driving this shift:
Social enterprises are adapting innovations to address local needs while ensuring global scalability.
There’s a growing emphasis on collaboration and open-source strategies, allowing for the rapid dissemination and adaptation of successful solutions.
Social enterprises are leveraging technology and networks to enhance their reach and efficiency.
Enhanced agility and responsiveness enable these enterprises to quickly identify needs, develop solutions, and scale their impact.
The report anticipates continued growth in the social entrepreneurship sector, driven by factors such as:
Deeper integration of technologies like AI, blockchain, and the Internet of Things.
Increased collaboration between businesses, non-profits, and governments.
Supportive government policies, including tax benefits and grants.
The success of social enterprises offers valuable lessons for business leaders. The report suggests two key steps:
Assess the opportunities and implications presented by innovation hubs in lower-middle-income and low-income countries.
Identify gaps in networks and connect with individuals in these regions to explore potential collaborations and partnerships.
The rise of social entrepreneurship signals a significant shift in the global business landscape. It showcases the potential of businesses to address pressing social and environmental challenges while driving sustainable economic growth. As Peter Drucker noted, “Every single social and environmental issue of our day is a business opportunity in disguise.”
When you change the way you see the world, you change the way you can shape it.
*Season one of The Global Edge podcast with Sophie Krantz is AI generated. Season two, launching early in 2025, will be hosted by Sophie Krantz.
