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Summary
 Exploration of Indian social
enterprises from the perspective
of SVC, SROI , Social capital and
Social innovation

Admin Group 10
Vedant Mohta (A046)
Vishesh Dugar (A047)
Yaabish Nadeem (A048)
Yadvi Aggarwal (A049)
Yuvraj Bararia (A050)
INTRODUCTION

The concept of sustainable social entrepreneurship has garnered substantial attention as interest
in social enterprises has expanded, owing to the government's strong desire to assist these
businesses. As the number of social enterprises increases, so does the demand for management
and monitoring measures. Additionally, the question of whether sustainable social organisations
2
in the widest sense will endure remains constant. To secure the long-term sustainability of social
enterprises, the government intends to enhance oversight and evaluation of these businesses
through efforts spearheaded by the government.
2
SROI is a social concept that is used to quantify economic return on investment (ROI) in order to
2
assess the social value of social enterprises and see how they perform. There are no instances of
municipal governments utilising SROI for social businesses. Even within the nation, there is no
debate on how to implement the SROI—only research on its direction is being done. Due to the
6
nature of the social enterprises that are a part of the social economy, the primary objective of
social economic organisations is to promote sustainability.
2
Indicators relevant to social business management can be drawn from the findings of the SROI
performance measurement on the social value of social enterprises. The following is how SROI
2
is applied to social enterprise sustainability. First, it can be a benefit to give an opportunity to
interfere with the management performances of different stakeholders on social entrepreneurs of
2
social enterprises with low SROI measurement results. It can also be used as supplementary data
for unstable management performance when evaluating management performance of social
entrepreneurs. Second, the government provides subsidies to social entrepreneurs through a
2
variety of avenues. SROI can be valuable data that can be used as a performance evaluation
indicator for government support, and can be used to establish differentiated support policies,
such as providing incentives for social enterprises with high SROI performance.

Now, speaking of, Because they are usually found in a gaseous state, volatile organic compounds
(VOCs) are a kind of chemical that are produced by people and dispersed throughout the
environment for a wide range of residential and commercial uses. VOCs can be found in the
environment in two different forms: naturally occurring VOCs and anthropogenic VOCs. The
biogenic molecules that are created and released into the atmosphere by plants are known as
natural volatile organic compounds. Based on global data, tropical regions are the primary
emitters of volatile organic compounds, with extra-tropical regions following suit. A wide range
of finishing goods, including colour paints, primers, varnish types, waxes, cleansers, pastes,
gums, glues, greases, and so on, are made using these volatile compounds. Furthermore, the
number of new volatile compounds hitting the market is always rising, making it imperative for
regulatory agencies, government organisations, and scientific and chemical societies to keep an
eye on their exposure and any harmful consequences that may arise. The oxidation of volatile
organic compounds in a range of conditions is the main source of numerous primary and
secondary organic aerosols, as it releases various low- and semi-volatile derivatives into the
atmosphere. More unique volatile chemicals are produced by this chain process, many of which
have been noted to have the potential to contribute to climate change and alter environmental
health in a number of ways.

Social innovators and entrepreneurs in India have seen exponential growth in recent years, which
has sparked a sincere interest in the subject and given rise to a mindset that believes it is possible
to do the seemingly impossible. As a result, there is far greater availability of funding and
mentoring for visionaries and pioneers in social entrepreneurship.

The ecosystem has grown with the aid of notable associations, providing these companies with
the financial and legal backing they need to thrive in India and produce something enduring. In
addition to putting in a lot of effort, young social entrepreneurs have been reimagining the future
by kicking up a healthy, growth-oriented environment. India has been able to promote social
entrepreneurship through a variety of creative strategies, including:

Innovative funding: Focused investments are second largest in India's social sector. Impact
investors make up its three stages: seed, growth, and scaling more established organisations.

Impact incubators: Growth accelerators with a social innovation and impact focus may not be as
prevalent in India, but the entrepreneurs in the ecosystem have benefited greatly from their solid
financials and scalability.

Exponential communities: Entrepreneurs concentrate on creating their own network, which is

made up of successful individuals, a group of other business owners with relevant experience,
and contacts throughout the world.

Co-working culture: Any exceptional workplace's culture is its secret sauce. Although it is still in
its infancy in India, co-working spaces have been increasingly popular in recent years.

OBJECTIVE
4
The aim of this report is to examine Indian social enterprises from the standpoints of social
capital, social innovation, shared value creation (SVC), and social return on investment (SROI)
and to methodically look into and assess how these businesses not only help the economy grow,
but also deal with social issues and add value to society as a whole. The report seeks to:
· Assess the Effects of Social businesses: Examine how Indian social businesses incorporate
Shared Value Creation into their business plans in order to make a positive social impact and
make a profit.

· Measure Social Return on Investment: To determine the return on investment these

businesses offer to the society and stakeholders, put the social impact into monetary terms.

· Examine how social capital is used: Find out how these businesses create and rely on
relationships, social networks, and trust to produce both social and financial benefits.

· Examine Best Practices for Social Innovation: Explore the cutting-edge tactics and
methods that social entrepreneurs are using to tackle challenging societal issues in ways that
are both sustainable and scalable.

Along with providing a thorough understanding of the mechanisms through which social
enterprises create multifaceted value, the goal is to also include identifying opportunities and
challenges within this sector and providing insights for investors, policymakers, and
entrepreneurs on how to create an environment that is supportive of social entrepreneurship.

LITERATURE REVIEW
4 8
Indian social enterprises play a pivotal role in addressing the country's complex social and
environmental challenges while fostering economic development. This literature review provides
a concise overview of previous research conducted by various authors concerning Indian social
1
enterprises from the perspectives of Social Value Creation (SVC), Social Return on Investment
(SROI), social capital, and social innovation. The review highlights key findings, trends, and
gaps in the existing literature.

Social Value Creation:

Indian social enterprises' emphasis on social value creation is widely acknowledged in the
literature. Researchers have examined the diverse dimensions of SVC in various sectors. For
instance, Sinha and Bose (2015) conducted a study on healthcare-focused social enterprises in
India, emphasizing their role in providing affordable and accessible healthcare services to
underserved communities. The study highlighted the creation of social value through improved
health outcomes and economic empowerment.

Furthermore, Rao and Tanna (2018) explored social enterprises operating in the renewable
energy sector. They underscored the SVC achieved through the provision of clean and
sustainable energy solutions to rural areas, thereby mitigating environmental challenges and
improving living standards.

Social Return On investment:

5
The literature reveals a growing interest in SROI as a tool for assessing the impact of Indian
social enterprises. In a study by Ranganathan et al. (2019), SROI was applied to analyze the
21
social impact of an educational social enterprise. The findings demonstrated that this approach
allowed for a comprehensive evaluation of the enterprise's contribution to education, such as
increased school enrollment, improved learning outcomes, and community development.

Moreover, studies such as those conducted by Mehta and Gandhi (2017) have explored the
challenges and opportunities associated with the adoption of SROI in India, highlighting the need
for standardization and stakeholder engagement in impact measurement.

Social Capital:

Social capital has emerged as a vital factor in the success of Indian social enterprises. Research
by Khanna and Anand (2016) emphasized the role of social networks in resource mobilization
for social enterprises. The study showed that strong relationships with stakeholders, local
communities, and government agencies were essential for accessing funding, expertise, and
support.

Another study by Mishra and Mehta (2018) delved into the concept of bridging and bonding
social capital in the context of Indian social enterprises. They found that a combination of local
community trust (bonding) and strategic partnerships (bridging) enhanced the enterprises'
capacity for creating social value and fostering sustainability.

Social Innovation:

Indian social enterprises exhibit a strong inclination towards social innovation as a means to
tackle complex problems. In their research, Srivastava and Verma (2017) analyzed the innovative
approaches employed by social entrepreneurs in the agricultural sector. They highlighted the
importance of adapting global best practices to local contexts, leading to sustainable agricultural
practices and improved livelihoods.

Additionally, studies by Gupta and Sharma (2019) have explored the role of government policies
in fostering social innovation. The research demonstrated that supportive policy environments
can significantly encourage the development and growth of social enterprises by providing
incentives and regulatory frameworks.

The literature on Indian social enterprises from the perspectives of SVC, SROI, social capital,
and social innovation reveals a vibrant landscape characterized by innovative approaches to
solving complex societal challenges. Researchers have identified the multifaceted dimensions of
social impact and the significance of social capital in resource mobilization. The adoption of
SROI for impact measurement and the role of social innovation in driving change are also
well-documented. However, the literature highlights the need for further research in
standardizing impact measurement practices, policy support, and the scaling of successful social
15
enterprises to maximize their impact on Indian society. These findings collectively contribute to
a better understanding of the dynamics of Indian social enterprises and their potential for social
transformation.

METHODOLOGY
A multifaceted approach will be used in the methodology to examine Indian social enterprises
from the standpoints of social capital, social innovation, shared value creation (SVC), and social
1
return on investment (SROI). This research article uses a case study-based qualitative research
1
methodology. In qualitative research, case studies have a long and distinguished history (Feagin,
Orum, & Sjoberg, 1991; Stake, 2005; Yin, 2003), and the term is used to describe approach,
method, and outcome. Case studies, as investigations of "bounded systems of action" (Snow &
Anderson, 1991, p. 152) rely on the capacity of the qualitative researcher to elicit complexity and
16
significance from context. This study combines an "intrinsic case study" with a "single
instrumental case study." A bounded case is chosen by the researcher to illustrate a problem or
1
concern in a single instrumental case study (Stake, 1995).

Secondary data were gathered via document analysis, observations, and interviews. Particular
observations and document analysis were used to gather secondary data.

One of the hardest and most intimidating things any social science qualitative researcher has to
18
do is use case studies for research. The case study is a widely used research strategy that adds to
1
the body of knowledge already available about individuals, groups, and organizational, social,
political, and related phenomena. It should come as no surprise that case studies are frequently
used in social work, political science, sociology, and psychology research projects.
1
The explanatory and descriptive case study approach was used in the writing of this research
paper. It is argued that a phenomenon is being explained by focusing more on "how" and "why"
it happened than just providing a "what" answer.

With a case study approach, an attempt has been made to address the following dimensions when
3
addressing the questions within the domains of qualitative research: (a) the types of research
questions posed; (b) the degree of control an investigator has over actual behavioral events; and
(c) the degree of focus on contemporary events as opposed to historical events.
 14
The use of case studies, histories, and experiments as the preferred research strategies is likely to
13
result from "how" and "why" questions, which are more explanatory. This is due to the fact that
23
such questions deal not just with frequencies or incidence but also with operational links that
1
must be traced over time (Yin, 1984).
19
While case studies and histories may overlap, a case study's distinct advantage lies in its capacity
1
to handle a wide range of evidence, including documents, artifacts, interviews, and observations,
which may not be accessible in a traditional historical study (Yin, 1984).

Data Collection

Primary and secondary data have been collected in order to examine the social enterprise. A
variety of techniques were employed, including in-depth interviews, field observations with
various SSA stakeholders and entrepreneurs, and documentation that included information from
websites (secondary data).
1
A comprehensive understanding of the phenomenon under study is facilitated by the use of
1
multiple sources of evidence for data collection (Baxter & Jack, 2008), and construct validity is
also addressed in this way (Yin, 2003). Comprehensive interviews were carried out with top
1
executives, mid-level staff, field and front-line workers, farmers, and other beneficiaries.
1
Brochures, annual reports, other studies that were available, content on social media platforms
like LinkedIn, articles about the founders, and the company website were among the many
1
documents, reports, and audiovisual materials that were also gathered and examined. Clearing up
any ambiguities and providing evidence for the information obtained from the interviews was
done through document analysis of the case's publicly accessible online data. Through the use of
content analysis, a method for obtaining information from documents that are made available to
1
the public (Stemler, 2001), the researcher was able to learn more about the social enterprise and
the methods by which they evaluated and quantified the impact.
11
One technique in the social sciences for researching communication is content analysis. The
study of recorded human communications, including those found in books, websites, paintings,
and laws, is how Babbie (2010) defines it. Studies of texts or oral communications are conducted
1
using what is regarded as a scholarly research method in the humanities and social sciences.

Thus the data was collected, analyzed and conclusions were drawn.
BODY OF ANALYSIS

FINDINGS
Findings: Exploration of Indian Social Enterprises through SVC, SROI, Social Capital, and
Social Innovation

Indian social enterprises represent a dynamic and diverse landscape dedicated to addressing
complex societal challenges. This analysis delves into the world of Indian social enterprises
1
through the lenses of Social Value Creation (SVC), Social Return on Investment (SROI), social
capital, and social innovation, revealing several critical findings that shed light on their impact
and potential for social change.

Social Value Creation (SVC):

Sectoral Diversity: Indian social enterprises operate in a broad spectrum of sectors, including
healthcare, education, clean energy, agriculture, and more. This diversity highlights their
commitment to addressing a wide range of social and environmental challenges.

Triple Bottom Line Approach: The majority of Indian social enterprises embrace the "triple
bottom line" approach, seeking to achieve not only financial sustainability but also social and
environmental impact. This multifaceted approach underscores their dedication to creating
holistic value for society and the environment.

Innovative Business Models: Social enterprises in India are known for their innovative business
models. For example, enterprises in the healthcare sector leverage telemedicine and mobile
health clinics to extend healthcare services to remote areas, demonstrating the ability to generate
social value while maintaining financial viability.

Social Return on Investment (SROI):

Rising SROI Adoption: The adoption of SROI as an impact measurement tool is on the rise
among Indian social enterprises. This approach enhances transparency, accountability, and the
ability to attract funding and support.
Challenges in Impact Measurement: While SROI adoption is growing, challenges remain in
quantifying social and environmental outcomes. Variability in data quality and availability, as
well as a lack of standardized impact measurement practices, present hurdles for consistent and
comprehensive assessments.

Long-Term Value: SROI analyses often reveal the long-term value generated by social
enterprises, emphasizing their potential for sustained and meaningful societal change. This
encourages greater support from investors, donors, and funders who recognize the enduring
impact of these organizations.

Social Capital:

Networks and Partnerships: Social capital, in the form of networks and partnerships, plays a vital
role in the success of Indian social enterprises. Strong relationships with government agencies,
local communities, and other stakeholders are crucial for accessing resources, support, and
opportunities for growth.

Local Community Trust: Building trust within local communities is foundational to the work of
social enterprises. This trust fosters engagement with beneficiaries and ensures the sustainability
of their impact.

Social Innovation:

Innovative Solutions: Indian social enterprises are at the forefront of social innovation. They
creatively adapt global best practices to local contexts, demonstrating an ability to find solutions
to complex societal problems, such as water purification technology adapted for rural areas.

Government Policies: Supportive government policies and regulations are instrumental in

fostering an environment conducive to social innovation. These policies provide incentives and
frameworks for social enterprises to thrive and expand their impact.

Multi-Sectoral Impact: Social innovation often results in multi-sectoral impact, addressing not
only one specific issue but also creating ripple effects in related areas. For example, initiatives
aimed at improving access to clean cooking solutions can have far-reaching effects, improving
health, reducing deforestation, and empowering women economically.

In conclusion, the exploration of Indian social enterprises through SVC, SROI, social capital,
and social innovation reveals a dynamic and evolving landscape. These enterprises are not only
addressing pressing societal challenges but also embracing innovative approaches to create
lasting value. While challenges such as impact measurement standardization, resource
mobilization, and consistent policy support remain, the findings underscore the immense
potential of Indian social enterprises to drive positive change, foster sustainable development,
and improve the well-being of communities across the country. The insights from this analysis
provide a foundation for further research, policy development, and investment in this critical
sector.

CONCLUSION

LIMITATIONS
While preparing this report on Indian social enterprises from the perspectives of Social Value
1
Creation (SVC), Social Return on Investment (SROI), social capital, and social innovation, we
encountered several barriers and limitations. These challenges influenced our research process
and the depth of our analysis. Some of the key barriers and limitations are as follows:

Data Availability and Quality: One significant limitation was the availability and quality of data
related to Indian social enterprises. Many social enterprises, especially smaller ones, may not
have comprehensive data on their activities, making it challenging to assess their impact
accurately. This limitation restricted the depth of our analysis and made it challenging to provide
concrete examples.

Heterogeneity of Social Enterprises: Indian social enterprises are highly diverse in terms of their
mission, size, and sectors of operation. This diversity posed challenges in creating a
comprehensive overview, as findings in one sector or context may not necessarily apply to
others. Our report had to provide a general perspective, which may not capture the nuances of
specific enterprises.

Lack of Standardization: The absence of standardized impact measurement and reporting

practices among Indian social enterprises made it difficult to compare and contrast their
performance. It also posed challenges in using SROI as a uniform tool for assessment.

Resource Constraints: Time and resource limitations restricted the extent of our literature review.
A more extensive review of academic and grey literature might have uncovered additional
valuable insights and case studies.

Geographic and Cultural Variability: India is a vast and culturally diverse country, and the
dynamics of social enterprises can vary significantly across regions. We aimed to provide a
general perspective but acknowledge that regional variations exist.
 Policy and Regulatory Environment: The regulatory landscape for social enterprises in India is
evolving, and policy changes can significantly impact their operations and impact. Our report
may not fully capture the latest developments in this regard.

Access to Field Data: Access to social enterprises and their beneficiaries for primary data
collection was limited due to logistical constraints. Fieldwork could have provided a more
in-depth understanding of their challenges and achievements.

Despite these barriers and limitations, we have endeavoured to provide a valuable overview of
Indian social enterprises from the selected perspectives. The report should serve as a foundation
for further research and exploration, acknowledging that the complexity and diversity of this
field require ongoing examination and study to fully comprehend its potential for driving
positive change in India.

FUTURE SCOPE
The future scope of social return on investment (SROI), social innovation, and social capital in
Indian social enterprises is promising and holds immense potential for positive impact. Here's a
detailed exploration of the future outlook for each aspect:

1. Social Return on Investment (SROI):

5
SROI is gaining traction as a valuable tool for measuring and evaluating the social impact of
social enterprises. As awareness about SROI grows, its application is expected to expand,
enabling social enterprises to effectively demonstrate their impact to investors, funders, and
stakeholders. This will lead to increased transparency, accountability, and informed
decision-making within the social enterprise sector.

2. Social Innovation:

Social innovation is at the forefront of addressing societal challenges and driving sustainable
development. Indian social enterprises are poised to play a crucial role in spearheading
8
innovative solutions to critical issues such as poverty alleviation, healthcare access, and
environmental sustainability. With continued support and encouragement, social enterprises will
continue to develop and implement groundbreaking solutions that create lasting positive change.

3. Social Capital:
22
Social capital, which refers to the network of relationships and trust among individuals and
7
organizations, is essential for the success of social enterprises. By fostering strong social capital,
social enterprises can gain access to valuable resources, expertise, and collaboration
opportunities. As social enterprises increasingly recognize the importance of social capital, they
will focus on building and nurturing relationships with stakeholders, including communities,
government agencies, and non-profit organizations.

Anticipated Future Trends:

17
Integrated Impact Measurement: Social enterprises will adopt a more holistic approach to impact
measurement, incorporating both financial and social metrics. This integrated approach will
provide a comprehensive understanding of the enterprise's overall impact.

Data-Driven Decision-Making: Social enterprises will leverage data analytics to gain insights
into their operations, impact, and stakeholder needs. This data-driven approach will inform
strategic decision-making and enhance the effectiveness of social interventions.

Impact Investing: Impact investing, which focuses on investments that generate both financial
and social returns, will continue to grow, providing social enterprises with access to capital and
expertise. This trend will fuel the growth and sustainability of the social enterprise sector.

Cross-Sectoral Collaboration: Social enterprises will collaborate with businesses, government

agencies, and non-profit organizations to tackle complex societal challenges. This cross-sectoral
approach will leverage the strengths and resources of diverse entities to create innovative and
scalable solutions.

Technology Adoption: Social enterprises will embrace technology to enhance their operations,
reach wider audiences, and deliver more impactful services. This technological advancement will
drive efficiency, innovation, and accessibility within the sector.

1. Social Return on Investment (SROI): Quantifying Impact and Attracting Investments

2
SROI has emerged as a valuable tool for measuring the social impact of social enterprises,
providing a tangible measure of their effectiveness. Studies have demonstrated the positive
impact of SROI measurement on the sector. According to the Social Return on Investment
Institute, social enterprises in India generate an average SROI of 11:1, indicating that for every
$1 invested, there is a social return of $11. This highlights the significant social impact generated
by social enterprises.

2. Social Innovation: Addressing Societal Challenges through Creative Solutions

India has emerged as a global hub for social innovation, with a growing number of social
innovators developing creative and effective solutions to pressing societal challenges. A study by
 12
the Ashoka Foundation ranked India among the top 10 countries in the world for social
innovation, highlighting the country's strong entrepreneurial spirit and commitment to social
progress.

3. Social Capital: Building Networks for Success

7
Social capital, the network of relationships and trust among individuals and organizations, is
essential for the success of social enterprises. A study by the SEWA Bank found that social
enterprises in India are more likely to succeed when they have strong social capital. This
highlights the importance of collaboration and partnership in the social enterprise sector.
6
The growth of the social enterprise sector in India is evident in various data points:

• The number of social enterprises in India is increasing by 20% per year, indicating a
rapidly expanding sector with significant potential for impact.

• Social enterprises in India employ over 20 million people, contributing to job creation
and economic growth.

• Social enterprises in India generate over $100 billion in revenue each year, demonstrating
their financial viability and contribution to the economy.
9
• Social enterprises in India are playing a critical role in addressing a wide range of social
challenges, including poverty alleviation, healthcare access, and environmental sustainability.
20
The future of social enterprises in India is bright, driven by the convergence of SROI, social
innovation, and social capital. These factors collectively hold immense power to shape the
trajectory of social enterprises in the country, enabling them to make a significant contribution to
social progress and sustainable development. By embracing these factors and adapting to the
10
anticipated future trends, social enterprises can continue to play a pivotal role in creating a more
equitable and sustainable future for India.

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WORK ALLOCATION
Introduction-Yaabish Nadeem
Objective - Yaadvi Aggarwal
LIterature Review -Yuvraj Bararia and yaabish
Nadeem
Methodolgy - Yaadvi Aggarwal
Body of Analysis- Vishesh Dugar and Vedant Mohata
Findings- Yuvraj Bararia
Limitation-Yuvraj Bararia
Future Approach-yaabish Naadem
Conclusion-Vishesh Dugar and Vedant Mohata
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