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and Medium-Sized Enterprises.[78]
The precise count of social enterprises (SEs) remains elusive because, regrettably, it is unclear what proportion of the nearly 50,000 socially oriented NGOs are hybrids and possess a secondary legal entity as a social enterprise. Nonetheless, with the increasing number of programs and initiatives for NGOs to monetize services and the pervasive trend of moving beyond grant dependency, it is plausible that already 20 to 30 % of NGOs also qualify as social enterprises.
Nonprofit organizations are increasingly regarded as attractive workplaces by business sector professionals. As identified by studies from the Social Information Agency and Zircon Group, 41 % of leaders and 43 % of staff members have backgrounds in the commercial sector. 34 % of senior managers and 31 % of staff[79] come from the domains of education, culture, and healthcare within public institutions. Many of these individuals, in line with the general trajectory of NGO development and the trend towards service monetization, integrate entrepreneurial tools into their organizational practices.
The distinctions between NGOs and social entrepreneurs are growing increasingly indistinct. For instance, it is often challenging to promptly ascertain an organization’s legal structure based on its description alone. Try to deduce whether we are discussing NGOs or social businesses based on the following descriptions.
The first organization is a center for inclusive projects and social integration of children with special needs, offering both paid and complimentary sessions with a defectologist, art therapist, specialist in adaptive physical education, as well as cooking classes, and workshops in ceramics, woodwork, and other materials.
The second organization is a center for the correction of speech and speech-related disorders in children, including those with autism spectrum disorders. The specialists at this center conduct both individual and group sessions.
Both organizations work with children who have developmental disorders as well as with neurotypical children, offering both paid and free classes in both cases. But in the first case, we are discussing the autonomous non-governmental organizations” “Center for Inclusive Projects and Social Integration of Children and Adults with Special Needs ‘What a Difference!’,” and in the second, we refer to the Logolab Speech Development Center, which operates as an individual intrapreneur and exemplifies a social enterprise.
Clearly, there are defined legal distinctions between NGOs and social entrepreneurs; however, economic circumstances and evolutionary laws dictate that when certain methodologies and instruments prove effective in one domain, they begin to be actively employed in another. That’s precisely the phenomenon we are observing at this moment.
The distinctions between NGOs and SE are growing indistinct. It is often challenging to ascertain an organization’s legal structure based on its description alone.
SOCIAL ENTREPRENEURS AND/OR SOCIALLY RESPONSIBLE BUSINESSES?
The count of sizeable Russian companies implementing social responsibility initiatives has, according to VEB.RF, doubled in 2022 — from 2.9 in 2021 to 5.5 companies in the city.[80] Concurrently, a VCIOM survey reveals that integrating CSR principles into the governance of Russian corporations is getting significant public attention. If in the second half of the 2000s, roughly a quarter of Russians recognized their domestic business as socially responsible, by 2023 this figure has increased to 44 %.[81] It is also worth noting that these corporations are gradually shifting their CSR investments from isolated charitable acts to a systematic approach in addressing societal challenges.
For example, Yandex’s sustainability report indicates that its philanthropic activities are founded on a systematic approach and use of its own technologies. In 2022, the company has set aside almost 479 million rubles for the development of systematic charity through its services and technologies. The company allocated 113.2 million rubles for the activities of its charitable foundation “Help is Near.”
The Aeroflot and Rosatom groups have likewise concentrated on systemic aid and sustainable development. In 2022, Aeroflot formulated and endorsed its Sustainability Policy, while the state corporation Rosatom initiated the Corporate Social Responsibility University to enhance the quality of social projects and broaden the scope of volunteerism.
Naturally, there is a considerable disparity between a modest social enterprise and a colossal corporation, rendering it inappropriate to compare them as equals. A closer resemblance is found between social enterprises and small or medium-sized enterprises, increasingly engaged in the social discourse, often without expressly recognizing or communicating it as a distinct avenue.
Research by the Green Brands League, IFORS Research, and Opora Rossii reveals that 73 % of companies maintain employment during parental leave, 70 % adopt resource-efficient practices, 54 % offer tailored development plans for staff, and 46 % compensate for medical and sporting expenses for their workforce and families. In the future, 30 % of those surveyed plan to go further in reducing environmental damage by engaging in tree planting, cleaning up territories and bodies of water, implementing separate waste collection, and optimizing logistic routes. 29 % of companies intend to invest in social and philanthropic endeavors, participate in volunteerism, and provide mentorship.[82]
Small business proprietors, despite fewer resources compared to their larger counterparts, also show an eagerness to incorporate impactful strategies into their business models in response to shifting market dynamics, consumer profiles, and values. According to Ogilvy’s research, 40 % of Generation Z respondents shun brands with unclear stances on significant social, environmental, or political matters, while 63 % are inclined to patronize brands that align their positioning with charitable, environmental, or socially impactful missions.[83]
This tendency is not exclusive to the younger generation. Specialists at OKKAM GROUP note that inflation and the overall rise in living costs are shifting consumer perspectives of responsible consumption into actionable strategies, including those yielding personal benefits. Product longevity, energy efficiency, long-term value, and sharing are increasingly becoming part of the core attributes of products.
Small and medium-sized enterprises
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