Could social enterprises lead Lebanon’s economic recovery?

Lebanon continues to sink into its worst economic and financial crisis since the end of the civil war, witnessing soaring poverty, double-digit unemployment and unprecedented social hardship. Meanwhile, the ongoing political stalemate further undermines Lebanon’s ability to implement desperately-needed reform and receive any kind of financial assistance. In such dire circumstances, the ability to attract foreign investment is clearly a challenge. There is, however, a significant and untapped opportunity to attract what is known as impact investment. In addition to seeking a financial return, the objective of impact investors is to support social enterprises, companies that generate a social and/or environmental impact that is measurable and scalable. In recent years, institutional donors have increasingly recognized the untapped potential of social entrepreneurs as new actors seeking sustainable market-driven solutions to old problems. But support remains limited to short-term funding for start-ups, with a lack of longitudinal follow-up to ensure successful implementation.