Social Enterprises in Cabodia
Cambodia’s economic growth has been on the rise following the global downturn on 2008-2009 and experts say that the private sector is largely responsible for that growth. However, those same experts also acknowledge that the profits generated by companies operating in Cambodia aren’t trickling down to those most in need. That said, many believe that social enterprises can significantly contribute to the country’s economic development and reduce poverty in the process… Social enterprises have been in practice for nearly 20 years in developed countries and have in many cases been successful while providing many benefits to society in the form of economic growth…NGOs have always strongly depended on funding from donors while social enterprises are self-sufficient, but with social and environmental aims. Experts explained that due to increasing limitations on funding and growing pressure from the government, many NGOs are moving toward a social enterprise model… The Cambodian government released the draft law on NGOs earlier this year. And that has been criticized by hundreds of local and international NGOs, which argued that the move would place unwarranted pressure on them…While the concept of the social enterprise is growing in popularity as a strong mechanism for socially inclusive economic growth and employment, it is a new sector in Cambodia that is faced with many constraints…Perhaps the biggest challenge faced by social enterprises in Cambodia is the government’s limited understanding or acknowledgement of social enterprises.
