Within the universe of potential private sector partners, Social and Impact Enterprises (SIEs) – those enterprises with an intention to solve a social or environmental problem – are a natural ally for actors like SDC to achieve development outcomes.

There are several reasons that make working with SIEs particularly interesting. There is an explicit alignment of vision and commitment to address a development challenge, when compared to other private sector partners. SIEs strive to be profitable and are sustainable beyond SDC support, when compared to not-for profit partners. They can therefore achieve high impact in a cost-effective way for SDC, since support is only supplemental and short-term. They can also promote highly innovative ways of achieving SDGs which can stimulate learning at SDC.

That said, PSE overall and SDC working with SIEs in particular, is a relatively new way of achieving development outcomes. Challenges include questions on how to find the right partner, the ideal governance for a partnership, the best financial instruments to support the SIE, and impact management. Partnerships with SIEs require careful design and agile implementation management.

Recording of the webinar "SDC support through Social and Impact Enterprises - what have we learnt?" (05.05.2022)