The Foundation for a Sustainable Society Inc. (FSSI) has released a study characterizing the social enterprise landscape in the Philippines. The report provides a profile of Philippine social enterprises, covering key aspects such as geographic distribution, legal status, products and services, target sectors, leadership, financial profile, and social impact.
The study also evaluates the current support available to the sector, highlighting government policies, non-government initiatives, and private sector involvement. It identifies critical challenges faced by social enterprises, such as limited access to capital and financial investments, difficulties in attracting and retaining talent, restricted market access, and low public awareness. Additionally, social enterprises share common obstacles with other businesses, including bureaucratic red tape, market instability, vulnerability to economic shocks, and inadequate access to public infrastructure and services.
In addressing these challenges faced by social enterprises, the report offers strategic recommendations to strengthen the ecosystem, focusing on key sectors such as academic institutions, the business sector, enablers and capacity-builders, funders, and government agencies.
For funders and financiers, the study recommends the creation of accessible disaster recovery and rehabilitation funds, along with promoting climate resilience in social enterprise operations. It also suggests using the triple bottom line (3BL) strategy and metrics to guide investment decisions and focusing funding efforts on social enterprises in the Visayas and Mindanao. Shared platforms for exchanging best practices should be developed.
In the larger private sector, business are encouraged to engage social enterprises in their value chains. Inclusive businesses are also urged to provide social enterprise-partners with access to grants or any funding support to ensure the sustainability of their production.
Meanwhile, the government is called to enact the PRESENT Bill and support the establishment of a Social Enterprise Registry. Hybrid financing mechanisms and increased access to government loans and infrastructure support should also be prioritized, along with providing subsidies for product certification and extended incubation support until social enterprises mature.
Finally, multi-stakeholder collaboration is essential. Big retailers are urged to provide space for social enterprise products, while concerned sectors collaborate on product development, certification, and production capacity. A more localized approach is recommended through partnerships with local governments, the private sector, and capacity builders to establish social enterprise roadmaps, ensuring targeted interventions and growth monitoring. The study also advocates for enhanced blended financing models that combine grants and impact investments to scale social enterprises. These recommendations aim to ensure the sustainability and success of social enterprises, allowing them to have a greater impact on communities across the Philippines.
The research, which blends both quantitative and qualitative data, draws from a range of secondary sources and interviews with select social enterprise support institutions. Previous surveys of social enterprises in the Philippines, technical reports, and publicly accessible publications were also utilized to profile the social enterprises and analyze the policies and programs of various supporting organizations. Additionally, data from FSSI-assisted social enterprises were consulted to assess the extent of FSSI’s impact on the sector. Data used in the study was collected from May to August 2024.
FSSIis a social investment organization committed to building sustainable communities through social entrepreneurship. The Foundation provides financial services and capacity building opportunities to a diverse range of social enterprises—including non-profit organizations, cooperatives, microfinance institutions, and small and medium enterprises—that align with its core principles of benefiting people and the planet while achieving profitability.
The publication of this study coincides with the celebration of FSSI’s 30th anniversary, which marks its establishment on September 6, 1995. The study also served as a key input in shaping the organization’s strategic goals for 2025 to 2029. The report was prepared for FSSI by writer-researchers Charles Allen L. Herpacio and Jefferson C. Bore.
Access the report here: https://fssi.com.ph/…/FSSI_Social-Enterprise-Landscape…
