This article is a contribution from Next Gen Assembly 2024 Member, Harry Vine.

Growing up in the 2000s, we were shown pictures in textbooks depicting a future world defined by climate disasters resulting from growing rates of environmental instability, global inequality, and overconsumption. Now, these images are in many ways a reality as we are seeing record numbers of unprecedented extreme weather events annually. There is a clear need and opportunity for a just transition through a model that decouples socio-economic benefits from environmental degradation, challenging the way these have traditionally been linked. Social enterprises are a potential model for meaningful change. They are emerging as a key player in tackling these challenges, promoting sustainable practices, and driving purpose using profit, demonstrating that economic growth as well as social and environmental responsibility can coexist.

As we grapple with rising socio-economic and geopolitical challenges, can social enterprises scale effectively enough to bridge the sustainable development gap?

The post-colonial growth of the globalised fashion industry has resulted in inequitable exchanges of natural resources and labour. However, fashion is rooted in traditional practices and due to its demand-driven nature, it can adapt very quickly. There needs to be a bottom-up approach and a focus on local needs, to bridge the gap between traditional linear economies and a drive for actionable and measurable development through a focus on identifiable, tangible impacts.

In 1987, the Brundtland Commission defined sustainable development as: economic efficacy, environmental protection, and social equality. Since then, there has been a rise in mission-orientated businesses, approximately 10 million worldwide in 2024, which collectively generate around $2 trillion in annual revenues. This growth will likely only continue as consumer purchasing habits shift towards sustainability.

Social enterprises operate under a different model to traditional businesses, where the solution to a problem or the needs of a community are centred in their mission, and profits are reinvested, leveraging market forces to create specific solutions. A social enterprise is an independent business with a clear social or environmental mission, generating over half its income through trade, reinvesting at least half its profits into its mission, and ensuring operational transparency. Are the principles of a social enterprise truly out of reach for traditional businesses today?

There are examples of social enterprises operating in the fashion industry, addressing different pillars of sustainable development. Stitches in Time (SIT), is a social enterprise based in East London, UK. SIT was born from a need to bring communities closer together and upskill unemployed women. SIT funds itself through an enterprise arm where they manufacture more ethically made garments for brands, artists, and designers. They focus on localised social impact through the strengthening of community engagement and providing access to education and training, all centred around a shared love of fashion. The business is rooted in enhancing wellbeing and prospects, through the sale of locally made garments.

ZAAF, an Ethiopian brand, empowers local artisans and creates economic opportunities by transforming the country’s abundant raw hides, which are usually exported, into high-end luxury handbags. Its founder, Abai Schulze, aimed to reshape global perceptions of African-made goods by providing a platform for local talent. Today, ZAAF’s products are featured in boutiques across France, Nairobi, Ethiopia, and the USA. Recently, the brand expanded its presence by opening an experiential boutique in Washington, D.C., showcasing how a mission-driven business can redefine industry standards. ZAAF is encouraging a mindset shift in the local economy, by creating a model that can help alleviate poverty and provide opportunity.

Ecoalf, founded in Spain in 2009, aims to stop the careless use of the planet’s natural resources. Today, Ecoalf has recovered over 1,500 tonnes of waste from the bottom of the ocean. Through the reinvestment of 10% of their profits into the Ecoalf foundation, they are expanding their ‘upcycling of the oceans project’ across the Mediterranean Sea. Ecoalf aims to collaborate with over 10,000+ fishermen and recover 1000+ tonnes of ocean waste every year. This can help to protect biodiversity and encourage the clean-up of oceans, while raising the profile of reducing natural resource consumption, demonstrating the impact that one mission-driven business can potentially have.

Social enterprises are profit-driven with a purpose, uniquely positioned to nurture sustainable development, through reinvestment of profit into values-led initiatives.

It can be seen from examples across local, regional and global scales, that needs and purpose can be centred and businesses can serve people and the planet. The rise of social enterprises signals a shift in how we measure success—one that values impact as much as income. Effectively scaling this model could be one way to help bridge the gap between economic growth and sustainable development.

Download the 2024 Next Gen Assembly: Wellbeing Spiral Playbook here.