Social Enterprises for Sustainable Development & Poverty Reduction

Published on Mar 2, 2017 AT MyanmarTimes Newspaper

Written by Tin (Rubynar) Yadanar Tun

people sitting on green grass field near train during daytime

The emerging social enterprise (SE) sector in Myanmar plays a vital role in uniting voices from business, civil society, and government. According to Professor Dr. Aung Htun Thet, Presidential Economic Advisor, this constructive dialogue explores how resources traditionally associated with the private sector—such as skills, networks, and capital—can be applied to the country’s most pressing challenges.

Myanmar’s social enterprise sector has a unique "flavor," being more demand-led than other markets in the region. Dr. Aung Htun Thet noted that SEs in Myanmar offer a unique opportunity to demonstrate that it is possible to achieve financial returns while simultaneously creating a positive impact on society. The diversity of legal forms adopted by these enterprises further highlights a characteristically Myanmar approach, where social objectives and vision remain the core focus, while legal definitions are considered secondary.

The Evolution of the Sector

According to the British Council’s Social Enterprise Landscape in Myanmar report, civil society has played an increasingly significant role in social movements since the 1990s. Following the relief and reconstruction efforts after Cyclone Nargis in 2008, many Civil Society Organizations (CSOs) shifted their focus toward social development. these efforts included emergency relief, rebuilding basic infrastructure, and providing essential health services.

When the military government initially resisted large-scale international aid after Nargis, domestic foundations and individual donors stepped in to fund the disaster response. Social entrepreneurship could be the sustainable solution for delivering these products and services, ensuring that disadvantaged groups not only benefit from development but also play an active role in it.

While some organizations are not currently recognized as formal SEs, many informal enterprises and philanthropic initiatives exist. Large corporations, celebrities, and business leaders in Myanmar have established foundations to engage in charitable work following national disasters. Although these foundations are typically not financially self-sufficient and rely on corporate funding, they could play a significant role in the future development of the SE sector.

Defining Social Enterprise

"Social enterprises are businesses that tackle social and environmental problems. They create jobs and generate income like other businesses, but instead of channeling profits to owners, they reinvest them to support their social mission," explained Ma Mi Mi Myo Win, Society Programmes Manager at the British Council.

She described social enterprise as a nascent sector with massive growth potential, offering a way to complement the efforts of the government, civil society, and the private sector to address entrenched social issues sustainably.

British Council Initiatives

Since 2011, the British Council has supported the development of Myanmar’s SE sector through training, mentoring, and policy dialogues.

"We have hosted policy dialogues bringing experts from the UK and across Asia to share best practices with Myanmar’s business and policy leaders. We also conducted one of the first mapping studies of social enterprise in the country," Ma Mi Mi Myo Win said.

Since then, the number of social enterprises has grown rapidly from a small base. Support services have also expanded, including the British Council’s Education for Entrepreneurs (E4E) and consultancy programs, alongside a growing range of incubators and accelerators. On the financial side, Myanmar has begun to attract interest from social investors and impact funds.

Overcoming Challenges

The most significant hurdles for social enterprises in Myanmar are developing professional skills and securing early-stage investment. Ma Mi Mi Myo Win noted that SEs often struggle more than mainstream businesses due to a lack of expertise in product development, business management, and impact measurement. These gaps make it difficult to secure the funding needed to scale.

To address this, the British Council launched two capacity-building programs in 2014:

Social Enterprise Consultancy Programme: This initiative builds a network of local business consultants to serve SEs and inclusive businesses that engage with "Bottom of the Pyramid" consumers.
Education for Entrepreneurs (E4E): In partnership with Standard Chartered Bank, this program supports SMEs with financial literacy and business development. It has reached 1,187 businesses across 12 cities.

Global Inspiration and Local Success

In the UK, the social enterprise sector is a powerhouse, home to 70,000 enterprises employing one million people and contributing £24 billion to the economy. The British Council is currently working with the Thomson Reuters Foundation to draft legal frameworks for SEs across seven ASEAN countries, including Myanmar.

Local success stories are already emerging. Ma Ei Pwint Rhi Zan, winner of the Myanmar Young Social Entrepreneur award, founded The Third Story Project in 2014. This non-profit SE produces children’s books in Burmese and ethnic languages to promote peace and tolerance.

"Our operating costs are covered by sales, making us self-sufficient and not dependent on grants for overhead," she said. "We reinvest our profits to provide free books to children in remote villages. However, finding staff with both a passion for storytelling and strong marketing skills remains a challenge."

Another example is Sun Flower, an organic dye and textile shop founded by Ma Phyu Ei Thein. The business supports rural women by preserving traditional Myanmar weaving techniques and creating jobs. While she aims to export these traditional designs to markets like Japan, she noted that the lack of quality-control organizations for exports remains a significant barrier.

The Path Forward

For the sector to truly flourish, founders like Ma Ei Pwint Rhi Zan believe a formal government registration process for SEs is a necessary first step. Tailored tax schemes for non-profit educators and mentoring programs from the private sector could further bridge the gap between social passion and business sustainability. At its heart, the goal remains a collaborative effort to improve lives across Myanmar.