Social entrepreneurship is growing rapidly across the world. Unlike traditional businesses that focus solely on profits, social enterprises aim to solve real-world problems while staying financially sustainable. Whether it’s providing clean water, improving education, or supporting environmental conservation, these ventures balance purpose with profit.
Singapore is often seen as one of the most supportive environments for entrepreneurs, and this extends to social enterprises too. With strong government backing, access to funding, and a socially conscious population, the country has become a hub for businesses that want to do good while making a profit.
But social entrepreneurs in Singapore still face the same challenge as any other business owner: how do they sustain themselves financially?
1. Selling Products and Services with a Social Purpose
At its core, social enterprises still operate like regular businesses, by selling something of value. For example, a social enterprise might sell eco-friendly packaging, handmade crafts from marginalized communities, or affordable healthcare services. The revenue supports both operations and their social mission.
Fresh producers growing in urban farms that promote sustainability and food security or coffee shops that train and employ those with disabilities are examples of social entrepreneurship. These businesses compete in the open market but differentiate themselves through a social or environmental mission, attracting customers who want their spending to have a positive impact.
This model works because it creates a self-sustaining cycle: customers get useful products, while communities benefit from the positive impact.
2. Leveraging Government Grants and Schemes
While the goal is sustainability, social enterprises still require funds to have the ability to expand, this is why grants and donations still play a big role in the growth of social enterprises. Many governments, NGOs, and impact-focused investors provide funding to social enterprises that prove they can create measurable social change.
Singapore offers strong institutional support for social enterprises. Programmes such as:
- raiSE (Singapore Centre for Social Enterprise) provides funding, mentorship, and capability-building.
- Enterprise Singapore and Startup SG grants help with business growth and innovation.
Unlike charities, however, social enterprises often use these funds to scale operations rather than just cover expenses.
These schemes and government grants reduce financial risk for the enterprise and allow social entrepreneurs to reinvest more back into the enterprise and further scaling their mission-driven work.
3. Hybrid Profit Models
Many social enterprises in Singapore combine profit-making activities with social programmes. For example, a training academy may run regular paid courses for the public but offer subsidised programmes for vulnerable groups, and many of these subsidies are supported by the Government and many NGOs.
This way, the profitable side of the business can continue to flourish and with its funds, supports the mission side, creating a balance between sustainability and impact.
Some examples of very successful social enterprise that has successfully profited and benefited the public is Rize, simplifying and reducing the carbon footprint and water usage in Rice agriculture all over the SEA region and Homage, providing quality caretakers for senior citizens in Singapore.
4. Corporate and Government Partnerships
Singapore’s corporate sector is big on CSR (Corporate Social Responsibility) and ESG (Environmental, Social, Governance) goals. Meaning social enterprises can partner with large companies for projects, training programmes, or supply chains.
For instance, a recycling startup might secure a contract with a corporate office park, or a social enterprise bakery may supply goods to hotels and MNCs. These partnerships offer consistent revenue streams for social enterprises while expanding their reach to more people to benefit from.
5. Memberships and Subscriptions
Some social enterprises here adopt subscription-based models. Examples include regular food delivery boxes with produce grown sustainably, or health-monitoring services for the elderly. Providing memberships and Subscription services can help to create predictable income for the social enterprise, while making services affordable and accessible to the community.
6. Impact Investments and Philanthropy
Another way that social entrepreneurs are gaining funds is through the rise of impact investing in Singapore, meaning more investors are looking to invest into businesses that combine profit with measurable social outcomes. Many investors fund social enterprises not necessarily for profit, but investing into these companies for the benefits of the community.
Additionally, philanthropic foundations in Singapore sometimes support enterprises with seed funding or scaling grants, particularly those aligned with national priorities like eldercare, education, or sustainability.
Through Impact investments and philanthropy support in terms of monetary and other contributions in terms of exposure, manpower and credibility. Social entrepreneurs can raise capital through these channels by proving their business model is both sustainable and impactful for the benefit of the community.
Final Thoughts
In Singapore, social entrepreneurs make money in ways similar to traditional businesses, by selling products, offering services, and forming partnerships with one key difference: their success is measured by both profit and impact.
With strong government support, access to regional markets, and a growing community of socially conscious consumers, many traditional entrepreneurs are also partaking in their own social responsibilities to provide and benefit the public in their own ways. Singapore provides fertile ground for social entrepreneurs to thrive. For those looking to balance business and purpose, the city-state is one of the best places to start.
