STATE OF AGRIBUSINESS
SOCIAL ENTERPRISE IN GHANA
EXECUTIVE
SUMMARY
March 2023
DEFINITION OF SOCIAL ENTERPRISE
Social enterprise is an organization that applies business strategy and practices to achieve social and environmental goals (Draft
SE Policy,2021). The organization should be able to produce measurable social and environmental impact first before profit
considerations.
There are three key attributes that generally define a social enterprise. These are objectives, entrepreneurship and method of
governance for the business. The objective should be to produce goods for public benefit centered on social need. In addition, the
objective should in turn be sufficient to motivate entrepreneurial ventures and these ventures should be able to achieve economic
independence and sustainability of the business. For a business to qualify as a social enterprise, it should have inclusive and
participatory governance because the main focus is the interest of parties and beneficiaries involved and not the single interest of
the owner or shareholders.
The European Union’s definition of social enterprises combines entrepreneurial activity with a social purpose. The main objective is
to have a social impact rather than maximize profit for owners or shareholders. It is an organization or business that generates
minimum 25% of its income through trade or provision of service instead of grants or donations; and prioritizes social and or
environmental impact above or equal with financial profit.
In Canada, there is no accepted definition for social enterprise, therefore, it falls into a wide spectrum of business models. A SE
does not have a specific corporate form, it includes “non-profit organizations” or “registered charities” who operate revenue
generating businesses. Furthermore, it encompasses organizations that operate as “for-profit” businesses with a social goal.
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SOCIAL ENTERPRISE CHARACTERISTICS
SOCIAL IMPACT
OBJECTIVES GOVERNANCE
ENVIRONMENTAL IMPACT
• Provide goods and • Inclusive Governance
services for public benefit • Participatory Governance
centered on social need.
ENTREPRENEURSHIP MEASURABLE IMPACT
• Motivate entrepreneurial • Social impact
ventures • Environmental Impact
• Sustainability • Financial Returns
• Economic independence.
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METHODOLOGY
8 Key Informant Environmental Different tools were adopted to
93 Sampled SEs
Interviews Scanning and accommodate the diverse nature and
from 803 MSMEs
Conducted Documents Review objectives of the study.
Key Informant Interviews were
900 Businesses and conducted in -person and virtually
Actors
Initial discussions were held with 7
private businesses to explore
opportunities in agribusiness
Social Enterprise Landscape Review of Agribusiness and SE
Policies
Agribusiness Social Enterprise
Review of Previous Research- World,
Africa and Ghana.
Social and Economic Impact of SEs
Contributions of Agribusiness SEs to Socio -Economic The Data Collection Tools centred on
Development 10 key themes 4
NUMBER OF SOCIAL ENTERPRISES IN GHANA
NUMBER OF SOCIAL ENTERPRISE IN GHANA
115,500
PREVALENT RATE OF SOCIAL
ENTERPRISES BASED ON MSMEs
.
5.5%
ESTIMATED MSMEs IN GHANA
Source:: NBSSI, SME Support Services Strategy
(2015-2020)
2,100,000
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CONTRIBUTION OF SEs IN GHANA
PERCENTAGE CONTRIBUTION OF SEs
ESTIMATED NUMBER OF DIRECT WORKFORCE IN GHANA
TO EMPLOYMENT IN GHANA
JOBS CREATED BY SEs
13.4 3.4%
808,500 MILLION
GHS
3.35% 23.1 BN
CONTRIBUTION OF SEs TO GDP ANNUAL TURNOVER (USD$ 2.6 BN)
BASED ON 2021 GDP,USD$ 77.59BN
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REASONS FOR THE ESTABLISHMENT OF SOCIAL ENTERPRISE
34% of social enterprises in
Ghana exist to create
employment opportunities.
There are 115,500 social enterprises
operating in Ghana. This number is
expected to grow rapidly.
26% 11%
IMPROVE
SELL A PRODUCT/
34% SERVICE HEALTH AND
WELL-BEING
CREATE 20% 24%
EMPLOYMENT IMPROVE A ADDRESS
PARTICULAR FINANCIAL
COMMUNITY EXCLUSION
AGRIBUSINESS SOCIAL ENTERPRISE
54.8% of SEs in Ghana are into AGRIBUSINESS SEs
Agribusiness CONTRIBUTE 1.84% OF GDP
An estimated 63,294 Social An estimated USD$ 1.43 Billion
Enterprises are involved in is contributed to the economy
agribusiness; constituting 54.8% by Agribusiness Social
of all social enterprises in Ghana . Enterprise in Ghana
443,051 DIRECT EMPLOYMENT
CREATED BY AGRIBUSINESS SEs
Over 70% of the employees are
GHS 12.66 BILLION ANNUAL
youth and 45% are female TURN OVER
working in agribusiness social
enterprises .
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13.5% 13.1% 10.4% 10.0% 7.7% 6.5%
16.2%
Employment Food Support Farmers Environmental Vulnerable Support Local
Women
Security. Protection People Communities.
Support
OBJECTIVES OF AGRIBUSINESS SOCIAL ENTERPRISES
Promote Health Support Informal Promote Migrant
Recycle Support
& Wellbeing. Disabled people Sector Education & Workers
Waste. MSMEs
Literacy
6.5% 5.4% 2.7% 2.3% 1.9% 0.8%
3.1%
PERCENTAGE OF AGRIBUSINESS SEs INCOME FROM GRANTS
0% 1-25% 51-75% 26-50 % 79-100 %
21.6% 7.8% 5.9% 3.9%
60.8%
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AGRIBUSINESS EXPORT POTENTIAL & INVESTMENT REQUIRED
USD$
USD$
26.7 % 10.2 BN
5 BILLION
IN NEXT
5 YEARS
PERCENTAGE OF
ANNUAL EXPORT INVESTMENT REQUIRED
AGRIBUSINESS SOCIAL
REVENUE POTENTIAL IN SE AGRIBUSINESS
ENTERPRISES THAT EXPORT
OF SEs AGRIBUSINESS
CHALLENGES FACING SE AGRIBUSINESS AND REQUIRED SUPPORT
1.4% High Staff
Turnover Time Pressure 1.8%
3.7% Shortage of Government
Business Skills Regulations 1.8%
4.6% Attraction and Staff or
Volunteers High Taxes 6.4%
Availability of suitable Getting Appropriate
7.8% premises 10.1%
Technology
Lack of Access to Business
11.0% Support and Advisory
Cashflow
13.8%
Legal Status in the
15.1% Cost of Farm Input
Country
22.5%
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CONCLUSIONS AND RECOMMENDATIONS
Need for Training in Agribusiness at
Local Level -not Academic 23.6% Need for Agribusiness
5.7% Challenge Fund
Need for Social Enterprise Innovation Yearly Research to quantify
17.9% 9.8%
Fund to drive Investment . Agribusiness and Social
Enterprises
Academic Training on Agribusiness from
10.6% the ‘Culture’ Mentality to Business
Need for Policy On
Social Enterprise 17.1%
and Registration .
Resource Agribusiness Department
15.4% in MOFA
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