A look into the impact of social enterprises in Tanzania

December 28, 2017

 

 

Although in this age, we often witness myriad of advancements in areas concerning health, energy, education, there are many communities in this world without such developments of otherwise deemed necessities. Many times, such communities rely on aid from government and public sectors. However, another contributor has gained greater recognition in recent years, known as social enterprises. Social Enterprises are organizations that focus on the advancement of social incentives with the use of commercial practices, and hold great potential to impact many populations. We will be focusing on the analysis of social enterprises in a specific community AYANA has been working with recently--Tanzania.

 

To begin, despite the prospective future of social enterprises aiding developing nations, there are many barriers for social enterprises to gain a stable hold in such communities. Tanzania remains one of the poorest countries in the world with only 12% of the population having access to sanitation facilities, and 15% having access to electricity. Despite there being a present need for services by social enterprises, the public is often unfamiliar with the organizations, and regulations restrict the enterprises’ actions. However, there are more organizations utilizing similar models of social enterprises, and the benefit has been gaining greater recognition. Such enterprise models focusing on revenue differ from NGOs in that they allow for greater sustainability even when donor support lessens. This system therefore relies on self-financing, and the companies can invest for further social advancements.

 

In addition, implementation for many public services have been slow, limiting the progression of Tanzania. Social Enterprises have the potential to work with communities, and spur advancements. However, because of the little recognition by the public of social enterprises, there is a struggle to find skilled staff to work and finance the enterprises. Currently, many organizations have been trying to increase trainings to build the awareness of entrepreneurship and promote the service as a viable option for youth, in hopes that upcoming generations can be inspired to alleviate struggles in their local communities.

 

At AYANA, our mission includes creating solutions that endure for developing nations. Social enterprises enable such sustainability since they generate revenue and do not solely depend on donations. Therefore, we hope to implement these business practices in our current models in Tanzania, in order to encourage new possibilities for the nation:

 

DAIRY FARMING

Dairy farming is the production of milk and other dairy products. Agricultural techniques are needed, and social enterprises in dairy farming can encourage self-employment, which would allow individuals to gain income. The limited land needed for dairy farming also allows it to be an affordable option. This model can potentially offer a range of services in processing, wholesaling, and even retailing.

 

AGRICULTURE AND AGRICULTURAL TRAINING

Social enterprises in the area of agriculture yield many possibilities for communities, as much of the population already depends on agriculture. A social enterprise in this field could lower start up costs for rural farmers and provide necessary tools to ensure a sustainable plan for individuals. Providing further training in agricultural skills and business practices could stimulate greater employment, and therefore, generate income. By diversifying and creating opportunities in areas like agriculture, there can hopefully be a greater encouragement in entrepreneurship, and hence, job creations.  

 

FINANCIAL SERVICES

Although financial services can have profound beneficial impacts on communities, much of the resources are excluded from individuals in developing populations. A social enterprise in financial services could help alleviate such gaps, by creating systems that allow individuals to contribute to economic activity.

 

Through the implementation of social enterprises, AYANA hopes to create opportunities in developing nations. We are looking forward to working together with locals in Tanzania, and will strive to inspire the youth to ideate socially conscious solutions that will leave a lasting impact on their communities.

 

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AYANA is a 501(c)(3) registered nonprofit organization under the Internal Revenue Service -- EIN 83-1447549.