Understanding Human Resource Challenges in the Indian Social Enterprise Sector
Sponsored by Potencia Ventures, IFC, and the G-20 SME Finance Challenge.
On the Path to Sustainability and Scale provides insights on the for-profit social enterprise landscape in India. Drawing from an in-depth survey of 101 social enterprises in India, this report analyzes the state of these mission-driven businesses including their geographic and sector distribution, business structure, stage of development, financial viability, funding sources and key challenges. This analysis and the actionable recommendations that follow will assist investors, donors, sector enablers, policy-makers and academics in making informed decisions about their involvement in the social enterprise industry.
Seen as one of the key barriers to scale and sustainability, HR challenges can range from recruitment to retention of talent. This study seeks to examine the nature of human resource challenges faced by social enterprises in India today. An important step in mitigating these challenges is to determine whether they emerged due to lack of resources to invest in people processes or due to insufficient market strategies and supporting infrastructure to attract the best talent to this sector. The research explored current people management practices pertaining to recruitment, capacity building and training as well as retention. It examined how social enterprises approached the need for setting up systems and processes for managing human resources. Recognizing that social enterprises also aimed to achieve social impact in addition to becoming profitable and financially sustainable, the study explored their views on the importance of mission alignment and how founders reinforced the mission with their growing number of employees. Finally, the research team evaluated the nature of demand and supply of manpower in this sector. Based on empirical evaluations of the findings, the study aims to propose solutions and recommendations that can help alleviate the human resource challenges faced by socents in India.