Yaneek Page | Hard truths about social entrepreneurship in 2025

Social entrepreneurs must now confront some difficult truths: the social enterprise landscape in 2025 is collapsing with changing economic conditions, international divide and geopolitical tensions.

Although many have nobly built enterprises focused on doing good, creating meaningful social change and achieving positive impact over purely profit-driven missions, the global priorities are shifting. The rules of engagement in industry and societal systems are transforming.

The very infrastructure that once supported their important work, particularly in addressing systemic inequities, and the vital UN Sustainable Development Goals (SDGs), is being dismantled.

Many people who built their lives in this space are exhausted and trapped in survival mode, while corporate giants, oligarchs and the upper echelons of society, many of which prioritised profits over people, have procured political influence for their narrow self-interest and insatiable wealth grab.

We are seeing an expansive income divide, and normalised humanitarian neglect. The hardest truth is this: being a tired, broke, undervalued, unsupported social entrepreneur at the mercy of societal indifference is NOT noble – it’s self-destructive.

Funding is drying up. Economic contraction and lacklustre financial performance in the private sector are exacerbating what was already a challenging environment for local social enterprises that depend on corporate social responsibility budgets and government funded grants.

The threat to social enterprises is not limited to US funding cuts which affect over 30 countries including ours; it’s the criminalisation, demonisation and economic starvation of social impact itself. Global corporations that previously provided credibility, funding, and advocacy are now distancing themselves out of fear of political backlash. Here’s how it is unravelling:

• The remaining funding sources are now extremely competitive, leaving social enterprises to fight over scraps in a shrinking pool and degraded ecosystem;

• Long-term impact investors are shifting their money to ‘safer’ industries, leaving social entrepreneurs without reliable financial backing; and

• Social impact work is being relegated to works of passion, or require immediate pivot to traditional enterprise ethos of monetisation and profitability as the primary focus.

Left behind

Unfortunately, the free fall goes beyond America’s gutting of funding for non-profits, humanitarian initiatives and international development investments.

Before the current crisis, it was reported that up to 18,000 social enterprises in the United Kingdom are at risk of closure because of financial pressures, exacerbated by the poor economic climate. Many firms surveyed reported reduced turnover and face challenges in sustaining operations without adequate support.

One interesting fact is that 25 per cent of firms surveyed two years ago reported that they had to use financial reserves to fund existing operations. They are not alone. A similar situation is unfolding in Australia and France today.

On a wider scale, the European Social Enterprise Monitor reported that over two-thirds of European social enterprises perceive a lack of political support as a significant barrier to their continued operations. It is bad news all around for impact entrepreneurs.

However, perhaps the most profound indicator of the systematic undermining of social impact is the sidelining or complete abandonment of their commitment to climate action by key national interests. These countries include the United States, China, India, Australia, Russia, Brazil, and Saudi Arabia. It also seems unlikely that the European Union will meet its climate commitments.

Why is this so important? Because climate crisis is the cornerstone of the UN SDGs as it affects every aspect of human life and the health of the planet. Jamaica is even more vulnerable to the adversities of climate change. These developments, or regressions, indicate a broader and troubling trend of nations re-evaluating collective humanitarian welfare in favour of insular political, economic, and social interests.

Facing reality

There is no value in sugar coating the current crossroads. The question social entrepreneurs need to answer is this – Can I afford to tie my future to sinking ships?

The fallout from US funding withdrawal over the next few years will be a shock for many in the impact space. The writing is on the wall; to operate a social enterprise, you first need complete financial independence, or even considerable wealth. It takes money to care.

Second, the business itself needs a solid revenue model that delicately balances profit and impact. Social enterprises need to make enough profit to allow for reinvestment via retained earnings.

Third, to be sustainable and effective requires an ecosystem, rooted in deep collaboration, and strategic alliances with others who are committed to the areas of impact you target. There is power, support and influence in numbers. Last, there must be strong advocacy. Jamaica needs a strong apolitical push for impact investing as a national policy.

Developing robust, transparent, unimpeachable systems and the supportive technological infrastructures that allow us to tap into philanthropic disposition of our expansive diaspora is a low-hanging fruit that must be maximised. It is a lifeline for vulnerable groups and communities whose needs will continue to exceed national budgetary allocations for the foreseeable future.

Without financial power and autonomy, social entrepreneurs will be at the mercy of donors, grants, and broken systems. Unfortunately, 2025 has already revealed that many at the top of these systems will not look out for those at the bottom, even as social impact tsars burn themselves out.

One love!

Yaneek Page is the programme lead for Market Entry USA, and a certified trainer in entrepreneurship.yaneek.page@gmail.com