Socially conscious businesses can boost development
Socially conscious businesses can boost development
A new report revealed by the United Nation Development Programme (UNDP) and the National Economics University (NEU) on Thursday concluded the Government should support the development of inclusive business models designed to support the sustainable development and drive growth.
Inclusive businesses are scalable, financially stable ventures that actively promote well-being for communities. These business ventures often focus on creating jobs, protecting the environment and promoting healthy lifestyles.
According to the report, an inclusive business model involves balancing social and economic goals. As much as 70 per cent of inclusive businesses in Viet Nam turn a profit. Roughly 34 per cent of them focus mainly on social projects, while 59 per cent target economic goals as well.
NEU Professor Tran Tho Dat said the 2009 launch of the Centre for Social Innovation and Entrepreneurship (CSIE) helped promote businesses that aid sustainable development. The university’s commitment to the centre shows its determination in promoting the business models that have good impact on the society.
Dat believes inclusive business models are necessary for the 21st century’s society. It is a win-win model in which entrepreneurs generate profits for themselves while helping to better their communities and the environment.
UNDP Assistant Country Director for Viet Nam Catherine Phuong agreed, saying that replicating and supporting the models are important to Viet Nam.
Developing inclusive business models through innovation and technology can help improve productivity and simultaneously resolve the social and environmental challenges facing the country.
According to the report, most inclusive enterprises in Viet Nam have small revenues and workforces; however, they take the lead in promoting diversity and inclusiveness in business. All of the country’s inclusive enterprises employ women and three fourths employ disadvantaged people.
The report suggested providing inclusive enterprises with more access to capital as a financial solution to promote their development. It also recommended establishing an official network for inclusive businesses and improving their ties with other firms in the private sector.
