What are social enterprises? Is it okay to support them?

Businesses today are increasingly seen as having the potential to change the world for the better, especially those with a clear social purpose. With environmental and community development efforts becoming more integrated into business strategies, consumers are being given the opportunity to make choices that support positive change.

In the Philippines, where social issues like economic inequality and environmental challenges are prominent, it’s an exciting time to discuss the role of purpose-driven businesses and how they offer both hope and opportunity.

As someone actively engaged in both business and social enterprise through Varacco and ThinnkFarm, and having attended recent forums like the “Food is Everyone’s Business” event by the Makati Business Club and the Mindanao TBI Summit in Davao, I’ve seen first-hand how purpose-driven companies bring energy and optimism to their missions. By aligning sustainable business practices with social initiatives, we are seeing more businesses make it their purpose not only to turn a profit but also to address meaningful issues in their communities.

A growing trend: Social entrepreneurship in the Philippines

In the Philippines, the concept of “business for good” has gained significant traction over the last decade. Social enterprises — businesses that aim to address social problems while earning a profit — are becoming increasingly visible. This trend was underscored during the Social Good Summit, which highlighted the role of businesses in tackling pressing issues like hunger, poverty, and climate change.

Varacco and ThinnkFarm are two such examples, merging sustainability with profitability. Through the use of precision agriculture, Internet of Things (IoT), and nanotechnology, our operations are designed to be climate-resilient and aligned with sustainable practices.

There are also Kandama Collective, Masungi Georeserve, and MAD Travel, all of which won the RVR Siklab Award of Phinma, AIM, JCI Manila, and De La Salle University. We aim not just to make a profit but to uplift the lives of those in the communities in the Philippines, especially those from indigenous peoples tribes.

The efforts of these businesses often receive recognition, both locally and internationally. I was honored to receive the PAN Fellowship for my contributions to nutrition and sustainability, while Varacco has been supported by impact grantors such as the BKCF and ACDI-VOCA are keen on fostering social change.

International programs, such as the Asia New Zealand Foundation’s Young Business Leaders Initiative, Swedish Institute Management Program, and Young Southeast Asian Leaders Initiative, also underscore the value of such enterprises in building bridges between nations.

But, of course, some may wonder: Do these businesses really make a difference? And is it worth supporting them if they’re still figuring things out? The answer, as we see from numerous success stories and awards, is that even small, positive impacts can spark lasting change.

The Challenges: Overcoming cynicism and structural barriers

In the Philippines, while there’s plenty to celebrate, challenges are also a natural part of the journey. There are issues like economic disparity and varying government support that can make some consumers skeptical.

But as more businesses continue to commit to transparency and sustainability, trust is steadily growing. Forums like the Makati Business Club’s event or the RVR Siklab Awards are helping shift the narrative by showing that social enterprises mean business, both in terms of impact and innovation.

Additionally, through programs like the CREATE Act and the Renewable Energy Act, the government provides incentives for companies adopting green technologies. However, more work is needed to streamline these benefits so that small and medium-sized social enterprises can access them more easily.

This is where we see an opportunity for growth and optimism. By working together, consumers, businesses, and the government can create an environment where purpose-driven businesses have the support they need to succeed.

Opportunities: The role of impact investing and consumer support

Despite these challenges, the opportunities for businesses with a social mission are significant. Impact investing, where investors seek not only financial returns but also social and environmental impact, is a growing trend globally, and the Philippines is no exception.

The success of social enterprises hinges on the support of both investors and consumers. In this sense, every purchase becomes a political act. When consumers choose to support businesses with a social purpose, they are voting for a more equitable and sustainable future.

Every purchase, every endorsement of a business that cares for the community, becomes a small yet meaningful contribution to a better future. This is where sustainability communication plays a crucial role. It’s about making a positive choice, knowing that each peso spent can support practices that uplift communities and care for the planet.

A bright future: How small choices lead to big impact

Yet, supporting social enterprises can be seen as a privilege that not everyone can afford. In a country where nearly a quarter of the population lives below the poverty line, many consumers simply do not have the luxury of choosing where to spend their money. Price, not purpose, remains the primary factor in most purchasing decisions.

This is where government initiatives and community support can come together to create the right conditions for these businesses to flourish. Imagine a future where policies, grants, and subsidies make it easier for every Filipino to support businesses that care deeply about people and the planet. It’s not just a dream — it’s an achievable vision.

The future is looking bright for businesses with a social purpose, especially in the Philippines. Every step toward a more inclusive, sustainable world is worth celebrating, and by supporting these enterprises, we all become part of a broader movement. The journey might come with challenges, but the potential for positive impact far outweighs any obstacles.

As the business landscape in the Philippines continues to evolve, the question is no longer whether it is okay to support businesses with a social purpose. The question is, how can we support these businesses and drive positive change — and how can we, as consumers and citizens, help drive the changes we want to see?

The answers are in your hands, right with your heart. – Rappler.com

Ariestelo Asilo is the president and CEO of www.varacco.com and www.thinnkfarm.com, which operate through social entrepreneurship selling Buy 1 Take 1 Coffee, and creating farmer-scientists in coffee production in Mindanao. Currently, he is taking his Doctorate in Sustainability at the University of the Philippines – Open University. He also has a cat named Libe which he found at the Liberica farm in Cavite.