Q1. Discuss different sources of financing of social entrepreneur. Suggest measures to increase funding of social entrepreneurs.
- Earned income from sales is vital for social enterprise sustainability and reduces reliance on external funds.
- Grants and philanthropic funding provide non-repayable capital from foundations, CSR, and NGOs.
- Impact investing offers capital (equity/debt) with intent for measurable social/environmental and financial returns.
- Government schemes provide dedicated funds, low-interest loans, and tax incentives for social enterprises.
Answer: Social entrepreneurs uniquely blend commercial strategies with a social mission, requiring diverse financing sources that acknowledge their dual bottom line. Unlike traditional businesses solely focused on profit, social enterprises often struggle to access conventional capital due to perceived higher risk, longer payback periods, and the challenge of quantifying social returns. **Different Sources of Financing for Social Entrepreneurs** One fundamental source of financing for social entrepre...