German Social Entrepreneurship Monitor 2024 (DSEM)

The social enterprises operate at the interface between entrepreneurship and social engagement. More than 300 of them were interviewed on topics such as turnover, impact measurement, barriers and funding opportunities. The report thus contributes to making visible the developments, but also the challenges, of the sector. 

Innovative approaches and participation: Social entrepreneurs actively involve their target groups and employees in their processes, and they introduce innovative solutions, for example, by integrating AI as a relevant technology in their business model. These approaches are widespread both in Germany and internationally and contribute to its dynamism. 

Impact orientation: Social enterprises have a strong focus on measuring and maximizing their social impact. In Germany, over 60% of social enterprises measure their impact already and even more plan to integrate it in the future. 

Focus on the common good and environmental awareness: There is a clear tendency in the sector to reinvest profits in social and/or environmental causes. Social enterprises pay attention to ecological responsibility in their supply chain and pursue ecological development goals. Thus, they make a significant contribution to sustainable transformation. 

Long-lasting success: Social enterprises generate a significant economic value, with just under one in five generating millions of Euros in turnover in the last 12 months. Meanwhile, it is also a long-lasting sector, more than one-third of the social enterprises operating in the sector for more than ten years. 

Despite their advantageous characteristics, social enterprises in Germany face various barriers that need to be overcome. There is a need for more support from policymakers and investors, as well as more support for impact measurement and management. The following actions can support the growth: 

Strengthening financial support: To further unlock the economic potential of social enterprises, new financing models and investment opportunities should be developed and made available. This includes promoting impact investing and providing venture capital. 

Strengthening networks and partnerships: By building and strengthening networks and partnerships, social enterprises can learn from each other and grow together. National and international cooperation between research institutions, intermediaries and policymakers should be promoted to facilitate the exchange of knowledge and resources. 

Fostering an inclusive ecosystem: It is important to create an environment that encourages those who have historically been less likely to start a business. This includes targeted programs and support for underrepresented groups to increase entrepreneurial diversity. 

Comparing the results of the DSEM 2024 with the State of Social Enterprise Report gives an impression of Germany's role in an international context. Even if the basis of the survey is different to some extent, there are a lot of similarities when comparing the data: 

• More than 10 million social enterprises worldwide are actively contributing to the fulfillment of the SDGs - in Germany and internationally - particularly in the education, health and social sectors. 
• An above-average number of social enterprises are run or (co-)founded by women (approx. 50%). 
• In Germany, there has been a particular focus on diversity in companies in recent years. 
• Around the world, social enterprises also face obstacles. These include a lack of public awareness, inadequate legal structures and access to long-term financing. 

The European Social Enterprise Report that will be published in autumn will put the German data into a European context and will allow for better comparison. 

The results of the DSEM 2024 show that the sector as a whole is on the right track. However, the comparison with the international State of Social Enterprise Report also reveals that we can and must achieve even more growth and better support in Germany. Both reports provide a common understanding of social entrepreneurship. They also provide potential funders and policymakers with evidence of the sector's development and contribution. It is now up to them to join forces to create the conditions in which social enterprises can flourish and make a significant contribution to social change.