Social entrepreneurs may be wondering where to look for money to fund their work in this newly challenging global landscape. The U.S. Agency for International Development that was effectively shuttered earlier this year was the single largest donor to global development programs, and gave more than $1 billion to small businesses last year and hundreds of millions each year to micro- and small businesses in underserved communities each year. That loss collides with a brewing global trade war. There is hope, however, experts said recently in a panel on social innovation at the Skoll World Forum 2025 in Oxford, UK.
See Development’s Power Shift
Social entrepreneurs should diversify their income streams, tapping into new partnerships, technologies, and financial models. The experts have ideas about where to look.
A multi-pronged strategy
The panelists mentioned five approaches to financial diversification.
- Partner with Local Governments:
Building long-term, trust-based relationships with local governments can unlock support and scalability. Experts urged entrepreneurs to demonstrate the economic value of their solutions and remain patient and persistent. - Tap Private Sector Resources:
Companies seeking to meet environmental, social, and governance (ESG) goals represent a growing opportunity. Startups can benefit by aligning their value propositions with corporate interests, accessing CSR funds, and leveraging social procurement channels. - Explore Alternative Funding:
Panelists highlighted the potential of family philanthropy, diaspora networks, and individual retail donors. Create flexible vehicles and platforms for smaller contributions can help unlock untapped support, they said. - Embrace Technology-Enabled Funding:
Digital platforms, AI-driven tools, and collaborative online networks are helping democratize philanthropy. These technologies can aggregate funding, lower barriers to entry, and connect entrepreneurs with a global pool of backers.
Even if the glitter is falling off of the promised AI tools and other new technology, they can make a difference. As one panelist put it, we overestimate the hype in the short term and underestimate the transformational effect in the long term. - Pursue Innovative Financial Models:
Social enterprises are beginning to explore non-traditional approaches, including consumer-based taxation, cross-border mergers, and intersectional funding models that integrate economic, social, and environmental goals. One place to look may be in supply chains and social procurement.
“It is trillions of dollars every year,” says François Bonnici, Director of the Schwab Foundation for Social Entrepreneurship and Head of Foundations at the World Economic Forum. “Tapping into 5 percent of that, 3 percent of that, can be a really interesting funding stream for this community, and at the same time, help to make those companies more inclusive, more sustainable, more local in what they do.
Five principles for success
While funding sources evolve, the panel emphasized five principles that remain essential: demonstrate economic impact, build strong community connections, maintain adaptability, focus on sustainability, and craft compelling narratives about the value of the work.
