The Importance of Social Entrepreneurship in India’s Future

Explore the growing role of social entrepreneurship in India, addressing poverty, climate change, and sustainable development with scalable solutions for lasting impact.

Introduction

At its core, social entrepreneurship—which addresses issues related to society and culture and climate— has the power to transform the way citizens interact with their surroundings and live within the constraints of the society they inhabit. It’s not just about charity—it’s about designing sustainable, scalable solutions for some of the most pressing issues we face today. Social

In India, there’s no dearth of challenges that need solving across these spheres. For instance, Indian fieldworkers have been at their lowest in terms of productivity. A survey by IDR Online found that a range of systemic issues still need to be addressed for fieldworkers—who currently represent about 27 lakh jobs in the country—to operate at their full potential.

And fieldworkers are just one of many examples. Whether it’s waste management, access to education, or clean energy—social entrepreneurs are working at the grassroots, innovating across different types of social entrepreneurship, each with its own model and mission. In this blog, we’ll explore what that looks like in practice, the challenges they face, and the growing importance of social entrepreneurship in India today.

Decoding the challenges within social entrepreneurship

While the need is clear and opportunities abundant, founders building in this space often face a unique set of challenges. Compared to conventional startups, social entrepreneurs navigate far more obstacles—especially when it comes to capital.

A study by the British Council found that 85% of social entrepreneurs found it more difficult to raise funds than their commercial counterparts. A large part of the problem lies in how traditional venture capital operates—with an emphasis on short-term ROI and linear growth.

“If you’re a founder working on a device that enables early detection of cervical cancer…chances are, a typical VC fund might pass,” says Manoj Kumar, Founder of Social Alpha, in an episode of Upstart by WeWork Labs. “It’s high-risk, non-linear, and hinges on impact at scale.”

This is where the idea of patient capital becomes vital. According to Vipul Nath Jindal, CEO and MD of Next Bharat Ventures, who has written about the subject in YourStory patient capital is the lifeline that allows social businesses to innovate and grow sustainably. Unlike conventional capital, it doesn’t demand rapid returns. Instead, it aligns with the role of social entrepreneurship—to drive long-term, meaningful change.

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Why India needs social entrepreneurs now more than ever

There’s arguably no better time to be a founder in India solving for social impact. While the country continues its rapid economic ascent, it is also confronted with the complex side-effects of growth: environmental degradation, social inequality, and infrastructure stress.

This is why the role of social entrepreneurship is more important now than ever—because it can bridge institutional gaps with empathy, innovation, and community-first thinking.

Take climate resilience, for example. In states like Maharashtra and Odisha, social startups are building water-saving irrigation systems and deploying early-warning climate tech for farmers. These initiatives highlight the benefits of social entrepreneurship: localized innovation, empowerment of underserved communities, and proactive mitigation of future risks.

In education, social entrepreneurs are designing tech-first models to reach first-generation learners in rural India. And in healthcare, they're deploying mobile diagnostic units in remote villages. These efforts don’t just address symptoms—they challenge root causes.

In fact, across the types of social entrepreneurship—from nonprofit hybrids to for-profit mission-driven ventures—one thing remains constant: the intent to empower and elevate.

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The road ahead: Policy, capital, and community

Government schemes are helpful but insufficient at scale. To truly unlock the potential of India’s social entrepreneurship ecosystem, three things must align: progressive policy, innovative capital, and a strong community.

Progressive policy acts as the foundation—clear regulations, tax incentives, and supportive frameworks can reduce barriers for social enterprises and allow them to scale their impact sustainably. Government programs that prioritize social innovation, ease of doing business, and public-private partnerships are essential to nurturing this space.

Innovative capital is equally critical. Traditional funding models often fall short when applied to ventures prioritizing impact over pure profit. What’s needed is a diverse mix of capital—grants, blended finance, impact investing, and patient capital—that understands the long-term nature of social change and is willing to fund models that may not show immediate returns but deliver measurable value to society.

Finally, a strong community of like-minded entrepreneurs, mentors, investors, and enablers creates the necessary support system.

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Policy support must go beyond CSR requirements to include tax incentives, innovation grants, and accessible infrastructure for social ventures. Capital providers need to rethink success metrics—not just profit margins, but lives uplifted and inequalities reduced.

Equally important is community. Social entrepreneurs often work in isolation and under immense pressure. Robust networks of incubators, peer support, and mentoring can reduce founder fatigue and amplify their mission.

The WeWork Labs Take

At its essence, the role of social entrepreneurship is to reimagine how impact and innovation can go hand in hand. It’s not about fixing things temporarily—it’s about creating lasting, systemic change.

According to Manoj Kumar, Founder of Social Alpha, “Creating entrepreneurship in these areas for social good is the new form of activism.”Watch Manoj speak about the social entrepreneurship in detail here.

Whether it’s building inclusive education models, creating climate-smart agriculture systems, or generating green jobs for underserved communities—the benefits of social entrepreneurship are far-reaching.

In a country as complex and vibrant as India, social entrepreneurs are not just contributors to the economy—they are architects of a more equitable future. As we navigate a rapidly changing world, betting on social entrepreneurship is no longer a feel-good choice. It’s a strategic one.