Funding of Social Enterprises

One of the biggest challenges that social entrepreneurs face is lack of adequate funding. The challenge becomes even bigger when dealing with a social impact focused project rather than a profit based one. Traditional investors do not prefer funding social impact projects. The following are ways in which one can get funding for social enterprises:


An entrepreneur can participate in the social innovation competitions that reward winners. All the entrepreneur needs to do is organize and present his ideas in the best way possible so as to impress and be the best.


An entrepreneur can consider a fundraising by collecting contributions from a large number of people. When these contributions are added up, they form a large amount of money that can enable the entrepreneur startup.


An entrepreneur can apply for available grants. They are usually offered free of charge. This will enable the entrepreneur to start up the project without much struggle.

Friends, Family & Fools (the Three Fs/angel investors)

This is the most common source of funding. These are the people an entrepreneur first thinks of before opting for other sources. It is a quick and easy way of raising funds. The only problem is that once a business is mixed with friendship or family issues, there may come up a lot of problems if things don’t go as planned.

Accelerator programs

These are programs that are designed to help entrepreneurs come up with businesses that can be sustainable and of benefit to them. They offer mentorship programs and help the entrepreneurs to improve their investment.


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