‘From Africa’s surge in social entrepreneurship to India’s entrepreneurial strides, together we shape a future of inclusive and sustainable progress.’
Africa is currently experiencing a remarkable surge in social entrepreneurship, where innovative solutions are being used to address various challenges while ensuring economic sustainability. These social entrepreneurs leverage technology to provide ethical training and employment opportunities for young people, improve healthcare accessibility, deliver social protection, develop climate-friendly products and services, and promote agricultural innovation, among other endeavours. A 2020 research paper by Siemens-Stiftung indicates that there are approximately 85,000 social enterprises in Kenya, 135,000 in Egypt, 140,000 in South Africa, and a staggering 1.3 million in Nigeria. Across sub-Saharan Africa, these enterprises are estimated to generate between 28 and 41 million jobs directly.
However, despite the progress made, each country faces its own limitations. In terms of entrepreneurship, Africa, as a rapidly growing continent and a relatively new player in the entrepreneurial landscape, can draw valuable lessons from India, one of the fastest-growing economies globally.
Taking Chad as a case study, this article explores how India can contribute to the development of entrepreneurial models in African countries. Chad, like any other nation, has its strengths and weaknesses. It is a landlocked country situated in the heart of Africa, with abundant water resources for irrigation and a significant oil production capacity. However, the people of Chad aspire to establish startups that create employment opportunities and provide desirable products and services for its population of over 16 million.
To address the challenge of unemployment in Chad, the transitional government initiated the ‘Project 50 thousand young people.’ This initiative offers funding to youth winners of the ‘50,000 Decent Jobs Initiative’ program. The ‘50,000 Decent Jobs Initiative’ is a Government policy designed to encourage entrepreneurship among young people, aiming to finance 2,000 young entrepreneurs to create 20,000 jobs in various sectors over three years. Additionally, it aims to improve the socio-professional integration of 20,000 young people, implement integration actions for 10,000 young people through a volunteer program focused on skills development, and recruit a significant number of young people into public service.
Despite these initiatives, there are numerous challenges to overcome. Currently, there are very few local businesses in Chad, and there are apprehensions about fostering an entrepreneurial environment due to perceived difficulties. However, the issue of unemployment is shifting people’s mindset towards entrepreneurship. The people of Chad possess great enthusiasm and energy for entrepreneurial ideas that can address challenges such as blackouts and unemployment. Chad’s young population dreams of establishing social enterprises that can tackle socio-economic complexities. It is crucial for them to understand that the public sector and Government support are not the sole solutions, and active citizen participation is necessary for planning and facilitation.
The establishment of African and Indian embassies in both New Delhi and N’Djamena has created significant opportunities for Indian entrepreneurs in Chad. These opportunities span various sectors, including mining (gold, bauxite, uranium, silver, and alluvial diamonds), renewable energies, food processing, telecommunications, industries, and the health sector. It is worth noting that established Indian companies such as Airtel (telecommunications), Satguru (travel agency), and N’Djamena Opticals (eye centre) are already providing employment opportunities to Chadians.
While perfection is an elusive concept in the world, and like any other developed or developing nation, India faces its own set of challenges. However, the Indian government has been actively striving for comprehensive development over the past decade. Through progressive schemes, the Indian government has fostered a dynamic and thriving entrepreneurial environment.
In India, the number of recognized startups has witnessed a remarkable increase from 445 in 2016 to 86,713 in 2022, as per the government. Indian social enterprises are built upon innovative models, and they have been conducting impressive entrepreneurial experiments in diverse sectors such as education, healthcare, agriculture, renewable energy, manufacturing, and skill development. According to data from the Department for Promotion of Industry and Internal Trade (DPIIT) in October 2022, approximately 23% of startups in the social impact segment are operating in sectors like healthcare and life sciences (7537), education (5309), agriculture (3887), green technology (1,844), and social impact (500).
India possesses a rich and diverse culture, abundant resources, a skilled and youthful workforce, an entrepreneurial-friendly atmosphere, an innovative ecosystem, supportive Government schemes, improved public policies, efficient systems and processes, and enhanced infrastructure. These factors provide ample opportunities for experimentation and success in establishing social enterprises. The Indian government initiatives such as the Startup India Scheme; ASPIRE—A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship; Atal Innovation Mission (AIM); NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC); and the Venture Capital Assistance Scheme (VCA), among several others, have been game-changers, and the world should not shy away from appreciating and replicating similar schemes and policies for creating feasible social enterprise models and to foster holistic socio-economic upliftment.
India’s journey towards self-reliance during the ‘Amrit Kaal’, sets it apart from other countries globally. India is not only supporting its own citizens but also playing a significant role on the global stage. A strategic multi-stakeholder roadmap is essential in this regard. Therefore, Chad and other African countries can adopt the Indian model. It is crucial to have an adequate number of coaches or mentors and ensure that people know where to seek resources and how to optimize them. The Chad government can introduce progressive schemes and policies to foster an entrepreneurial environment within the country. By engaging in holistic planning and collaborating with private businesses and civil society organizations, the Government can identify gaps in the ecosystem and work towards filling them. The elementary 5E formula: Equality, Education, Effort, Empowerment, and Ecosystem Creation, has a strong potential to set a strong foundation and embrace the base for strengthening the pillars of the global social entrepreneurship movement.
Africa presents both opportunities and challenges, but the continent’s young generation is more future-oriented, solution-driven, and optimistic than previous generations. Developing an inclusive model based on sustainability and inclusivity is of great significance. The potential of social enterprises is gaining recognition from both the private and public sectors across the continent. An economy based on social harmony can drive sustainable local development with inclusivity. By implementing a diverse portfolio of initiatives that focus on skilling, training, education, knowledge exchange, coaching, and mentorship, progress can be accelerated towards achieving the Sustainable Development Goals (SDGs).
In conclusion, African leaders, social entrepreneurs, and communities must harness their immense potential to achieve rapid, sustainable, and comprehensive socio-economic growth. The young generation in Chad aspires to become social entrepreneurs, aiming to address the socio-economic complexities they have grown up with. While many challenges remain unsolved, they are now planning to establish enterprises that generate profit while benefiting the community. To reform their approach, African nations need to develop ecosystems that facilitate collaboration between Government administrations and social entrepreneurs. Through strategic cooperation and healthy initiatives, social entrepreneurship can drive all-inclusive and sustainable development on the continent.
Sumit Kaushik is a PhD candidate at O.P. Jindal Global University and a Social Impact Consultant and Vipin Juneja is a senior Public Policy Consultant. The views expressed are personal.
