Social enterprises are organizations where ROI stands for ‘Return on Impact’, and where ‘profits’ are measured in positive change. You could say that if Batman ran a business, it would definitely be a social enterprise where he uses his resources to create positive change throughout various communities.

A social enterprise is a business which places greater emphasis on social impact rather than profits for shareholders. It is a business which reinvests the majority of its profits into initiatives that support significant societal goals, such as combating poverty, overcoming environmental challenges, equality and equity, and many more social issues. A social enterprise operates through offering products and services with entrepreneurship and innovation as their Polaris, aimed at achieving social objectives.

In 2011, the European Commission launched the Social Business Initiative which aims to enable social enterprises to secure optimal environments to operate in. The initiative looks to bring short-term action plans to securely and effectively push the development of social enterprises and their key stakeholders in the social economy.

Such initiatives are critical for organizations looking to make the world a better place for all, one community at a time. With the rise of prominence on environmental, social, and governance (ESG) goals, social enterprises require all the support they can receive. 

In Cyprus, however, CSI and other social enterprises face a seemingly unique challenge in that the government does not recognize them as being any different to a charity, NGO, or a non-for-profit, stagnating the growth and impact of social enterprises.

In the 114th episode of FutureTalks, host Michael Tyrimos and Sotiris Themistokleous, Director of Strategic Development at the Center for Social Innovation (CSI) discuss the impact, challenges, and opportunities for social enterprises in Cyprus.

Cyprus has quite a ways to go in terms of creating a supportive framework for social enterprise organizations. Despite this, organizations such as CSI, co-founded by Dimitris Hadjisofoklis and Sotiris Themistokleous in 2017 have been making great strides in the social ecosystem. Sotiris, armed with a background in political science and a passion for positive change, played a key role in establishing CSI as a top consulting, fundraising, and project management organization in Cyprus. 

With over 150 projects completed and €60 million in funding raised over six years, CSI's journey has not been without challenges.

Networking emerged as a cornerstone of CSI's success, connecting them with over 2,000 individuals and organizations within the first few months of their inception. Sotiris strongly advocates for the power of networking, believing that robust connections, both personal and professional, play a vital role in achieving success, regardless of one's career stage. 

His journey into social enterprise began as an intern in 2006, where he discovered that even NGOs are not exempt from politics. Armed with this realization, he immersed himself in the world of social innovation and diligently networked with organizations involved in social innovation and funding for NGOs.

Through networking, CSI not only expanded its reach but also forged lasting relationships with organizations and individuals globally. This approach of reciprocity enabled them to secure international funding and partnerships in regions like North Africa and the Middle East. However, Sotiris recognizes that this success did not come without its challenges. 

Cyprus faces a talent pool shortage, particularly in technical skills. Nevertheless, with a combination of perseverance and luck, CSI managed to build a skilled team that contributed significantly to their achievements.

Yet, the landscape of social enterprises in Cyprus remains marred by misconceptions. Many associate social enterprises solely with NGOs, non-profits, or charities, restricting their potential growth. CSI, despite its remarkable achievements, finds Cyprus’ definition of a social enterprise lacking in clarity, which prevents it from further growth and profitability which can contribute to significant social initiatives. 

This void poses obstacles for Cyprus-based social enterprises, limiting access to international markets and larger funding opportunities.

As the director of Strategic Development at CSI, Sotiris emphasizes that the confusion surrounding the definition of social enterprises in Cyprus is a significant barrier to their progress. In recent years, there has been a growing wave of various associations and businesses actively engaging in social innovation and social entrepreneurship.

The lack of a comprehensive framework that can clearly define social innovation organizations hampers the growth of enterprises like CSI, preventing them from realizing their full potential.

Sotiris stated that building an adequate and accurate framework, and establishing the title of a social enterprise, would act as a “passport to international markets and access to greater international funding.”

Sotiris believes that faults do not lie with the government alone, but instead calls for collective action from the ecosystem of social organizations. By fostering constructive dialogues and forming a united voice, these organizations can collaborate with policymakers to create a favorable ecosystem for social enterprises to thrive. Cyprus has witnessed great individual efforts from individuals such as Panis Pieri, George Issaias from Synthesis, and Alexander Apostolides. 

Sotiris finds that this presents an opportunity for an open call among social organizations to come together, host constructive discourses, and potentially form an association that can inform and guide key stakeholders in shaping a robust social organization ecosystem.

Looking outward to the world, Sotiris highlights the significance of lobbying efforts in supporting social enterprise growth. He laments the fact that lobbying remains a nascent phenomenon in Cyprus, while it has been present and influential worldwide for several decades. Drawing inspiration from established practices, Cyprus can empower social enterprises to extend their reach and influence, creating a conducive environment for growth and impact.

CSI's annual networking event, scheduled this year for the 31st of August, symbolizes the growing momentum of social innovation in Cyprus. Gathering over 400 passionate individuals, the event serves as a testament to the potential impact of collective action. 

The event provides a platform for organizations to come together, share insights, and collectively navigate the challenges faced by social enterprises in the region. It serves as a celebration of the progress made and a call to action for a united front in advocating for a more inclusive and sustainable future.

The path ahead for social enterprises in Cyprus is one filled with challenges, but also opportunities for positive change. Through a blend of strategic networking, collective action, and lobbying, social enterprise organizations can forge a path towards a more inclusive and sustainable future.

As Sotiris Themistokleous and FutureTalks host, Michael Tyrimos, continue to navigate the complexities of social enterprise growth in Cyprus, the stage is set for a new chapter of progress. 

Grounded yet creative approaches will pave the way for social innovation to make a tangible difference in society. For those looking to contribute to this transformative journey, reaching out to Sotiris Themistokleous or Michael Tyrimos offers a chance to be part of this dynamic movement. United by a common purpose, Cyprus is on the cusp of a brighter future, where social enterprises can thrive and shape a society that fosters sustainable change for all.