Technology-Based Social Enterprises for Addressing Global Social Challenges

Abstract

Technology-based social enterprises (TBSEs) are technology businesses that have a social mission, a business model that generates income, and a digital business model. TBSEs are increasingly seen as effective means of solving problems that markets and States alone have failed to solve. This paper explores how these ventures are designed, funded, deployed, and governed. It introduces and outlines a three-tiered data collection and data delivery-to-community integration model and links it to stakeholder dynamics and hybrid funding. It then considers deployment scenarios, friction points, and how to measure impact and social return on investment (SROI). Results indicate that digital means can better serve more people at lower service cost. However, TBSEs also entail new dependencies such as algorithmic bias, data extraction, and a growing digital divide. The paper calls for a combination of technical capacity and community ownership, ethical data governance, and patient hybrid capital to have a lasting impact.  It ends with recommendations for impact investors, entrepreneurs and policymakers as well as recommendations for future research.