Attention to social entrepreneurship has grown in recent years. However, the gap between needs and opportunities remains significant. According to research by the Global Alliance for Social Entrepreneurship of the Schwab Foundation, these projects face a funding shortfall of $1.13 trillion to fully realize their potential.
Initiatives like the Rise Ahead Pledge, where large-scale companies commit to investing in social innovations, demonstrate growing private-sector support for social enterprises. Despite increasing interest in social entrepreneurship, the Global Innovation Index 2024 highlights a decline in venture activity and reduced investment in academic research and development, making it difficult to secure funding, especially in unstable and underdeveloped regions.
Entrepreneurs face many obstacles. Resource accessibility directly depends on region, specificity of project and awareness of creators about accessible instruments. Where to find funding if the main goal is not maximum profit but sustainable impact?
Grants are the most common tool for securing initial funding for social projects. They do not require repayment and are typically awarded to organizations whose missions align with the goals of the grantor, for example, fighting poverty, promoting inclusivity, addressing environmental issues, or improving education.
Non-commercial foundations in Kazakhstan:
International funding opportunities open for applications:
The main advantage of grants is that they do not require repayment, support the social mission of the project, and offer opportunities for recognition and valuable experience. However, grants are usually limited in amount and duration, require detailed reporting and compliance with formal eligibility criteria, and last but not least, are often highly competitive.
Grants are a good start but they do not ensure long-term sustainability. Therefore, it is important to build a financial model that will work after the grant expires.
Crowdfunding is a way to raise funds for a project through small contributions from a large number of people. This approach works well for projects with a strong social mission and a compelling story that can resonate with a wide audience.
Popular crowdfunding platforms:
International:
Russian and CIS platforms:
Central Asian platforms:
The choice depends on the project format and target audience. For social entrepreneurship in Central Asia, it is generally better to choose a local platform, as they have a deeper understanding of the local context and audience. However, if the project has large-scale potential and appeals to a global audience, international platforms can also be suitable.
Crowdfunding is a powerful tool for testing hypotheses, gauging demand, and building a community around your project. Even if the fundraising goal isn’t fully met, it still offers valuable feedback and insight into whether the idea resonates with your audience.
For social projects aiming to grow, impact investors can be a vital source of funding. These are private or institutional investors focused on generating measurable social impact rather than maximizing financial returns.
Unlike charitable foundations, impact investors do not simply donate funds. And unlike traditional venture capitalists, they are not driven solely by profit. Their goal is to support projects that achieve both financial sustainability and positive societal outcomes.
Impact investors can be reached by participating in accelerators and incubators that support social entrepreneurship and help shape the business model, such as Plug and Play or the Tamyr Platform. They can also be found by networking at forums, pitch sessions, hackathons, and industry events. In addition, online platforms and databases like the Global Impact Investing Network (GIIN), Toniic, and others provide valuable access to potential investors.
It is important to understand that impact investors are looking for projects with a strong mission, a scalable model, and a transparent system for measuring results. Therefore, before seeking investment, you should clearly define the problem your project solves and be able to demonstrate how your activities create meaningful, positive change.
For social projects, especially in the early stages, public programs, subsidies, and contests can serve as an important source of support. These opportunities may be general, aimed at supporting small and medium-sized businesses or specialized for non-profit organizations, youth initiatives, or projects in the field of social policy.
Many countries, including Kazakhstan, actively support socially significant initiatives. For example:
Each region in Kazakhstan has its own grant competitions and support schemes, often implemented through Entrepreneurship Support Centers, Youth Resource Centers, or local foundations affiliated with the regional akimats. It is important to note that government funding typically comes with strict reporting requirements and deadlines that must be followed precisely.
Another often underrated source of funding is collaboration with the private sector. Many large companies actively implement Corporate Social Responsibility (CSR) programs, through which they support social projects, charitable initiatives, volunteer programs, and environmental startups.
For many companies, CSR is an integral part of their sustainable development strategy. Businesses are expected to demonstrate social responsibility to customers, investors, and government stakeholders. Supporting impactful and meaningful social projects helps companies strengthen their brand, increase employee engagement through participation in initiatives, and build a positive reputation in the market.
Partnership with business has different shapes:
Ideally, the partnership should be win-win: the social project receives resources and support, while the business gains audience reach and contributes to sustainable development.
The most sustainable form of funding comes from a project’s own revenue-generating activities. Social enterprises aim to earn not for profit’s sake, but to ensure the long-term development of their mission.
Sometimes the core activity itself can be monetized (e.g. courses or consultations), while in other cases, additional products such as souvenirs or branded merchandise generate income. The key is to find the intersection between the mission and the market, where people are willing to pay to support the project’s continued growth.
Earning revenue means independence, flexibility, and long-term sustainability. Even if a project begins with grants or crowdfunding, long-term financial viability should always remain a priority.
Before seeking funding, it’s important to clearly understand what problems your project aims to solve, what stage it is at (idea, prototype, launch, or scaling), and how much funding is needed for startup, operations, and growth. Evaluate your available resources, including your team, network, and skills, and consider whether you’re prepared to report to investors or donors. Based on this assessment, you can choose the most suitable type of support: grants, investments, loans, or a combination of these.
Even the most promising social project can encounter serious challenges if it is not properly prepared.
Without a clear revenue model, consistent support, and strategic planning, even the strongest idea may fail to thrive. Grants, crowdfunding, impact investors, and government subsidies are valuable tools, and should be used, but they cannot replace a systemic approach.
Sustainable financing requires the active use of all available resources, from public programs to private investment. Social entrepreneurship is on the rise, and with it, a growing diversity of funding opportunities. More and more people are willing to support meaningful initiatives: donating through crowdfunding platforms is becoming the norm, and investors are increasingly viewing social impact as equally important as financial returns.
