Building an Ecosystem Where Social Enterprises Can Thrive in India

Giving by the Indian diaspora to credible philanthropic causes keeps growing steadily. According to the Indiaspora Impact Report, pre-pandemic levels of giving had already crossed $800 million. Currently, Indian-American households contribute an estimated $1.5–$2 billion annually to nonprofits. I believe that this is only the tip of the iceberg in terms of what can be done. Harnessing the entrepreneurial talent and resources of Indian-Americans to benefit those pursuing social change in India through market-based approaches is the obvious next step that can transform India into the Silicon Valley for global social entrepreneurship. 

In order to realize this bold vision, we need to further develop an ecosystem in India that nurtures social enterprises that use for-profit models designed to advance positive social and ecological change. Do we need to look further than the Silicon Valley to see what kind of magic can happen when such an ecosystem develops? This magic has, with no exaggeration, disrupted how the world operates. It has unleashed potential for billions of people around the world, be it through access to information, leapfrogging via technology, or addressing energy issues. 

Could concerted efforts build an equivalent platform in the social enterprise space, tapping into the extremely fertile landscape India offers today for social entrepreneurship? I believe they can and must. In this context, I take pride in the work of Action For India (AFI), a powerful ecosystem-building organization which I founded that has helped bring together the best of both worlds—innovative entrepreneurs and highly motivated social entrepreneurs from India who are committed to creative problem-solving for the public good.

With over 2 million social entrepreneurs, India is already leading globally in using market-based approaches to bring sustainable and scalable change. With India’s wealth of talent and a wide range of social and ecological needs, the nation presents fertile ground for social enterprises to drive transformative change across communities, positioning India as a global leader in the social enterprise and impact investing movements. This potential is on display in dramatic fashion at the TiE Global Summit being held in Bangalore this month, which I will be attending.   

The Indian diaspora has been a key contributor to Silicon Valley’s success and is uniquely positioned to support the robust growth of high-impact social enterprises in India. The diaspora’s role in supporting social enterprises extends far beyond funding; it includes providing mentorship, facilitating partnerships, and fostering a culture of innovation. But this approach requires rigor to reach its full potential. Vikram Gandhi, a Senior Lecturer at Harvard Business School, highlighted the importance of carefully evaluating both financial viability and social impact when investing in social enterprises during a keynote address at the Philanthropy Forum organized by Indiaspora and Dasra this past October. His recommendations guide our work at AFI.

Indeed, we have focused AFI’s efforts on this ecosystem-building approach by organizing social enterprise accelerator programs throughout the year and organizing our Silicon Valley Challenge and Trek on a regular basis. This latter program brings leading social entrepreneurs from India to meet with mentors, investors, and experts in Silicon Valley. These trips have catalyzed promising Indian enterprises focused on impact. For example, one of our alumni is Carbonlites, a company that converts agricultural waste into clean energy. By bringing entrepreneurs together with diaspora leaders, AFI has created a replicable model for ecosystem building, one that provides both financial and strategic guidance to help social enterprises scale sustainably.  

The ecosystem needed for India to create a flourishing space for social enterprises is being developed by harnessing the power of AI and other technology-driven solutions, establishing partnerships between governmental and non-governmental organizations, and ensuring accountability by placing a strong emphasis on measurable outcomes and clear reporting. Social entrepreneurs in India are optimizing these trends to tackle issues as diverse as sustainable agriculture, education access, healthcare, eldercare and more. Climate-centric enterprises are an example that appeals to the sustainability-minded as well as the investment-minded stakeholders. Hybrid revenue models are increasingly pursued and are being welcomed by the donor community. Happily, seeking profits while doing good is no longer taboo. Lastly, India’s large population of educated and idealistic young people lends itself well to the social enterprises thrust into technology and futuristic solutions. I am convinced that India is on the road towards a social enterprise revolution, fueled by a supportive ecosystem and entrepreneurs with bold ideas and ideals. With organizations like Action For India further developing the ecosystem and the active engagement of Silicon Valley veterans, Indian social entrepreneurs can gain access to the tools, mentorship, and funding needed to scale their impact. We therefore call on members of the Indian-American diaspora to join hands with us to volunteer their mentorship, advice, investments, donations, connections, and mastery of technology to help more social enterprises in India reach their full potential. We invite all of you to be an integral part of this exciting journey of change and impact!

About the Author

Sanjay Kadaveru is Founder & Chairperson of Action For India. Learn more about Sanjay here: Sanjay Kadaveru – Indiaspora