As per International Labor Organization, in 2018, global unemployment levels fell one percentile to a steady five percent in 2018, the lowest figures since the economic crisis that wreaked havoc on labor markets. World Employment and Social Outlook Trends 2019 report further emphasizes that unemployment rates were anticipated to fall further to 4.9 percent this year. The number of jobless in real terms is estimated to rise from 172 million to 174 million in that time as the labor market expands.

As economies across the globe look to curb the unemployment crisis, there are two areas to focus on, one is job creation and second is skilling and reskilling. On one side economies need a more skilled and job-ready workforce, on the other they need to create relevant job opportunities for this population of employable workforce. While there are many ways in which the unemployment crisis could be dealt with, from constructing relevant policies around skill development to fueling various sectors with funds, boosting the social entrepreneurship sector or building the social economy is also one of the effective mediums.

Besides assisting in overcoming poverty and achieving social integration, social entrepreneurship can also help in creating productive employment. Intergovernmental organization, the United Nations reiterated the role social entrepreneurship can play in curbing unemployment, when it launched  UNICEF’s UPSHIFT Program. Recently, in the World Economic Forum 2020, Schwab Foundation for Social Entrepreneurship in its 2020 Impact Report highlighted how it has improved the lives of more than 622 million people in 190 countries.

Social entrepreneurs have proven how employees, customers, suppliers, local communities and the environment can benefit

An alternative working model

Klaus Schwab, Founder and Executive Chairman of the World Economic Forum said, “By having as its mission the engagement of all stakeholders in the creation of social and economic value, social entrepreneurs have proven how employees, customers, suppliers, local communities and the environment can benefit.

Nobel Peace Prize winner Muhammad Yunus believes social entrepreneurship is derived from the need to value the abilities of every human being and understanding that saving the environment must be a collective effort. With social entrepreneurship, many birds can be hit with one stone. It empowers individuals to utilize their potential and work for a better livelihood, and improve the lives of the consumers from all socio economic backgrounds and all of this is done keeping in mind the greater good of the entire environment. Hence, social entrepreneurship benefits many stakeholders of the ecosystem and eventually the whole ecosystem at large.

As WEF puts is, social entrepreneurship, as an organizational expression of social innovation, is the demonstration of alternative working models as we face the current challenges to our planet, our societies and our economies. With the role of HR evolving and the scope of its function going beyond the people of the organization to the community at large, it is important for HR leaders to understand the opportunities of this emerging sector and what it could mean for them.

Lack of access to support and advisory services, lack of finance and funding, lack of technical skills and social enterprise awareness are some of the barriers to growth

Read the rest of Drishti Pant’s article at People Matters