Philosophical practices within social enterprises in South Africa: A search for inclusive socio-economic development

Abstract

Generally, economic investment models are primarily premised on maximising profit and accumulating wealth, a development paradigm that mostly benefits investors, with little attention to the indigent. South Africa, despite being one of the richest countries in Africa, continues to record high levels of inequality, poverty, unemployment, and social injustice. This paper focuses on social entrepreneurship as a socio-economic paradigm that aims to balance profit-making and social impact for economic inclusivity in Buffalo City Municipality in the Eastern Cape Province, South Africa. An interpretivist paradigm, which aligns with a qualitative research approach, was adopted. Using a case study research design, three social enterprises in the agriculture, ICT, and clothing sectors were selected from which ten participants were purposively sampled and interviewed. Thematic analysis revealed that people-centrism, socio-economic empowerment, cultural integration, and continuous innovation are key philosophical pillars driving social enterprise practices. The findings highlight that by aligning traditional African values with market-oriented strategies, social enterprises contribute to rebuilding community solidarity, democratising economic participation, and addressing systemic inequalities. These principles advance the social investment paradigm in social enterprises by enabling the reconceptualisation and contextualisation of wealth creation and its concomitant social impact on communities. However, tensions remain due to differing perceptions of social enterprises as either Afrocentric solutions or neo-colonial constructs. The study concludes that philosophical authenticity and contextual sensitivity are crucial for enhancing the efficacy and acceptance of social entrepreneurship models in South Africa’s socio-economic development landscape. The study recommended that practitioners implement inclusive, equity-based investment models to promote human development.