INTRODUCTION
Background of the study
Social entrepreneurship is gaining traction as a solution for social and environmental challenges, particularly in South East Asia where the concept of "social enterprise" is well recognized Social entrepreneurs leverage innovative business models to tackle niche problems that often lack legislative support or private investment, ultimately driving significant social change by reshaping the socioeconomic landscape for targeted communities One impactful sector for social entrepreneurship is agriculture, which plays a crucial role in the economic development of many developing nations.
Myanmar, the largest mainland nation in Southeast Asia, boasts significant natural resources, including fertile land and abundant water, along with favorable climatic conditions for agriculture, highlighting its potential for growth However, despite these advantages, Myanmar is ranked 149th out of 191 countries in the Human Development Report 2022, making it one of the poorest nations in the region (UNDP, 2022).
Rural areas in Myanmar face significant challenges, with many individuals lacking access to nutritious food and essential resources The central dry zone and hill tracts, predominantly inhabited by ethnic minorities, are particularly hard-hit due to limited agricultural land and ongoing conflict Recognizing the agricultural sector's critical role in fostering economic growth and social progress, this master's thesis aims to explore how social entrepreneurship in agriculture can tackle social and environmental challenges while promoting economic development and community well-being.
This thesis will incorporate diverse qualitative research methods, including literature reviews, case studies, and interviews with stakeholders It will also apply relevant theoretical frameworks and concepts derived from literature in social entrepreneurship, sustainable agriculture, and rural development.
This master's thesis aims to enhance understanding of social entrepreneurship in Myanmar's agricultural sector and its role in addressing social and environmental issues while promoting economic growth and community development By examining the critical success factors and challenges faced by social entrepreneurs in agriculture, the thesis seeks to provide valuable insights for policymakers, development practitioners, and social entrepreneurs on effectively supporting and scaling this approach to achieve sustainable development goals in Myanmar and beyond.
A social business is an organization focused primarily on achieving specific social objectives, with most of its profits directed toward charitable causes The main goal of a social enterprise is to generate profits while promoting societal and environmental welfare As defined by the Asia Development Bank, social enterprises tackle social and environmental challenges, create job opportunities, and deliver goods and services to marginalized communities According to Eversoe (2014), these enterprises represent hybrid organizational models that combine aspects of for-profit businesses and nonprofit entities.
Social enterprises are independent organizations focused on delivering goods and services with a social mission By leveraging entrepreneurial strategies, they aim to create social, environmental, and economic benefits The impact of social enterprises on socioeconomic development can be examined from various perspectives.
Social enterprises play a crucial role in delivering essential services—social, educational, and agricultural—to local communities, ensuring equitable access for all, including marginalized individuals By actively engaging local stakeholders, these organizations promote a balanced use of resources, fostering sustainable development that addresses both community needs and environmental concerns Furthermore, social enterprises create job opportunities, particularly benefiting minority groups such as women.
4 and rural entrepreneurs This not only helps alleviate poverty, but also facilitates these groups' incorporation into the job market
Lastly, social companies increase local social capital through broad ownership and local participation This is crucial because it develops social cohesion and fosters a sense of community
Main Crop Paddy, Sesame, Groundnut, Pulses, Tomato, Chili, Garlic and
Table 1 1 Data of smallholder farmers in Myanmar Source: The 2014 Myanmar Population and Housing Census
Smallholder farmers in Myanmar are individuals or families cultivating small plots of land, usually between 0.5 to 10 acres These farmers primarily engage in subsistence farming, relying on their agricultural production to sustain their livelihoods They play a crucial role in the country's economy by contributing to food security and local markets Smallholder farming practices often involve traditional methods and limited access to modern technology Many smallholder farmers face challenges such as climate change, market fluctuations, and limited resources Despite these obstacles, they demonstrate resilience and adaptability in their farming practices Community support and cooperative efforts can enhance their productivity and income Government policies and programs aimed at improving smallholder farming are essential for rural development Investing in education and training for these farmers can lead to sustainable agricultural practices Overall, smallholder farmers are vital to Myanmar's agricultural landscape and economic stability.
Smallholder farmers in Myanmar are rural agricultural producers who own or work on small plots of land
They typically cultivate crops such as rice, maize, pulses, vegetables, and fruits for sustenance and local markets
These farmers often employ traditional farming techniques and rely on manual labor or simple tools and equipment
Smallholder farmers play a crucial role in the country's food security as they contribute to the domestic food supply
They are often part of farming communities and may engage in informal sharing of knowledge and resources
The recent Myanmar Census highlights the vital role of smallholder farmers, who manage 80 percent of the country's farms and cultivate over half of its cropland Despite their modest size, these farms are essential for the agricultural sector and play a key role in tackling social and economic issues The labor-intensive agriculture in Myanmar ensures that smallholder farms provide crucial livelihood opportunities, supporting local communities The commitment and efforts of these farmers are pivotal in enhancing food security, economic stability, and the overall well-being of the nation.
Smallholder farmers in Myanmar encounter significant challenges, including limited access to credit, markets, and modern farming technologies, which contribute to low productivity and income instability Many of these farmers primarily engage in subsistence farming for personal consumption, while some also cultivate cash crops or raise livestock to supplement their household income To address these issues, the government and various organizations are implementing initiatives aimed at providing training, improving credit access, and facilitating market linkages to enhance the productivity and livelihoods of smallholder farmers.
Insufficient government support significantly challenges smallholder farmers, hindering their ability to sustain agricultural operations While INGOs and NGOs offer assistance, their project-based initiatives often fail to provide long-term support Additionally, agricultural extension services, essential for delivering vital knowledge and guidance, are not effectively implemented or widely popular among government and organizations Consequently, farmers in rural areas lack access to crucial resources such as crop information, capital, and technological advancements, which are vital for enhancing smallholder agriculture.
1.1.3 Legal framework of the Social Enterprise in Myanmar
Myanmar's social enterprise sector is still in its infancy, with an unclear number of enterprises and a lack of regulatory framework Currently, there is no government policy recognizing social enterprises as legal entities However, the British Council is working with the Ministry of National Planning and Economic Development to enhance support for social enterprises Their collaboration aims to empower government officials to foster an environment that amplifies social impact and to develop specific laws and policies tailored for the sector.
Informal social enterprises, including socially conscious organizations, have the potential for financial sustainability despite not being formally recognized as such This includes NGOs and associations that generate income alongside donations, as well as cooperatives that operate similarly to private companies but focus more on social issues Small and medium-sized enterprises (SMEs) that integrate social missions into their business models can also be classified as social enterprises In Myanmar, many prominent businesses and individuals have established foundations and are actively involved in charitable activities.
The following overview outlines the various legal structures utilized by both formal Social Enterprises and informal Social Enterprises
In recent years, the growth of International Non-Governmental Organizations (INGOs) has been significant; however, Myanmar still experiences a comparatively limited presence of these organizations when assessed alongside countries like Cambodia, the Philippines, and Thailand.
Problem Statement
Rising food insecurity and poverty
People were already experiencing severe economic hardship due to the COVID-
19 pandemic's effects before the coup, with one research showing that the percentage of households living below the poverty line increased sharply from 16 to 30% through
2020 The World Bank reported that the pandemic and the coup had reduced Myanmar's economy by 30% from what it would have been otherwise (World Bank, 2022)
The ongoing political crisis in Myanmar is severely impacting both urban and rural populations, with 14.4 million people identified as needing humanitarian aid in the 2022 Humanitarian Response Plan Nearly half of the population, approximately 25 million, lives in poverty, and 13.2 million are facing food insecurity, prompting vulnerable families to skip meals, sell assets, and take loans for food The International Labour Organization has projected a loss of 1.6 million jobs in 2022, exacerbated by the effects of the COVID-19 pandemic and ongoing political unrest, leading to significant socio-economic challenges.
Research Gap
Social enterprises play a crucial role in agricultural and rural community development, yet there is a significant research gap regarding their specific contributions in Myanmar While existing studies have explored social enterprises in various contexts, there is limited literature addressing their unique challenges and opportunities within Myanmar's agricultural sector This underscores the necessity for thorough investigation into the obstacles faced by these enterprises and the potential they hold for fostering sustainable development and enhancing rural livelihoods Such research is essential for providing insights and recommendations that can aid policymakers, practitioners, and social entrepreneurs in effectively integrating social enterprises into Myanmar's agricultural and rural development efforts.
Research objectives
This study aims to thoroughly analyze the contributions of agricultural social enterprises to agricultural and rural community development during crises The primary objectives include assessing the impact of these enterprises on community resilience and sustainability in challenging times.
1 To identify and examine the challenges and opportunities faced by agricultural social enterprises in Myanmar in fulfilling their intended roles within the agricultural sector
2 To analyze the extent to which agricultural social enterprises have contributed to the development of agricultural practices, rural livelihoods, and overall community well-being in Myanmar
This research aims to highlight the significance and impact of agricultural social enterprises in fostering sustainable farming practices, enhancing socio-economic development, and building resilience in rural communities, especially during crises.
Research questions
This thesis investigates the role of social enterprises in enhancing the agricultural sector and fostering rural community development in Myanmar It seeks to identify the diverse ways these enterprises contribute positively to agriculture and rural areas, ultimately aiming to improve livelihoods and promote sustainable practices.
The second research question explores the challenges and opportunities related to the current landscape of social enterprises in Myanmar, focusing on their potential to enhance agricultural and rural community development.
1 How social enterprise contributes to the Agricultural sector and rural community development?
A How do social enterprises help smallholder farmers by finance, knowledge and agricultural input?
B How do these resources provided by social enterprise impact the farmers?
2 What are the Challenges and Opportunities in the current situation and toward improving the role of social enterprises in agricultural and rural community development in Myanmar?
Organization of the study
This paper is divided into five parts
This article outlines the structure of the study, beginning with an introduction to the background, problem statement, and organization in Chapter One Chapter Two reviews literature on the strategic significance of Social Enterprises in agriculture and rural development, highlighting their challenges and opportunities Chapter Three details the research design and methodology employed in the study In Chapter Four, the analysis focuses on the challenges and opportunities faced by Social Enterprises in contributing to agricultural and rural community development in Myanmar Finally, Chapter Five presents the conclusions and recommendations derived from the research findings.
Scope of the Study
This study examines agricultural social enterprises in Myanmar amid the challenges posed by the Covid-19 pandemic and ongoing political unrest Utilizing Proximity Designs and Taungthutada (TTTD) as case studies, the research employs in-depth interviews to explore the resilience and adaptability of these enterprises during difficult times.
17,000 villages, 227 townships, 75% of the farming population
Focused crop Paddy, Sesame, Pulses, Beetle, tomato Garlic and Onion
Table 1 3 Profile of Proximity Designs Source: Proximity
Proximity Designs, a social enterprise founded in 2004 by Jim Taylor and Debbie Aung Din, is dedicated to enhancing the livelihoods of smallholder farmers in rural Myanmar The organization focuses on providing sustainable and affordable agricultural solutions to tackle the challenges these farmers face, including limited access to information, resources, and markets.
The organization's vision is to create a world where everyone has the opportunity to achieve their full potential, regardless of their circumstances
Proximity Designs is dedicated to empowering smallholder farmers and rural families in Myanmar by designing and delivering affordable products and services that boost income The organization focuses on providing essential tools and resources to enhance lives, promote sustainable agriculture, increase financial inclusion, and foster innovation in rural development By striving for a more equitable and sustainable future, Proximity Designs aims to set a benchmark for social entrepreneurship and sustainable development globally.
Proximity Designs addresses these challenges by providing a range of products and services tailored to the needs of smallholder farmers These include:
Proximity Designs offers personalized farm advisory services through a dedicated team of over 300 field staff, assisting farmers in adopting best agricultural practices, accessing credit and markets, and effectively managing risks.
Financial Services: Proximity Designs partners with local financial institutions to provide farmers with access to credit and savings products, as well as insurance products to manage risks
Irrigation Systems: Proximity Designs manufactures affordable, high-quality irrigation systems that allow farmers to irrigate their fields more efficiently and effectively, thereby increasing yields and reducing water waste
Farm Machinery: Proximity Designs distributes affordable and durable farm machinery, such as rice threshers, seeders, and weeders, to improve productivity and reduce labor costs
Proximity Designs offers affordable and sustainable renewable energy solutions, including solar-powered irrigation pumps and lanterns, enabling farmers to decrease their dependence on fossil fuels and enhance their energy security.
Proximity Designs is globally acclaimed for its innovative approach to agricultural development, earning prestigious awards like the Skoll Award for Social Entrepreneurship and the Ashden Award for Sustainable Energy The company has been highlighted in major media outlets, including The New York Times, The Guardian, and CNN In 2019, it was recognized as one of the world's 50 Best Workplaces for Innovators by Fast Company.
1.7.2 Context of Taungthutada, TTTD - Farmers' Bridge
Reach Cumulative 2,597 farmers, 27 villages in 2 townships
Focused crop Tomato, Chili, Corn, Garlic and Onion
Table 1 4 Profile of Taungthutada Source: Taungthutada
The team’s vision of "Solving Together with Farmer" led them to collaborate with an e-commerce platform to supply Shan vegetables and fruits, alongside cultivating crops like Pumpkin (Pyit Taing Htaung), Baby Kale, and Sweet Violet Waxy Corn from East-West Seeds To support their fieldwork, they raised funds from core members, aiming to operate as a social business in the region.
Taungthutada is committed to fostering rural economic growth and enhancing agriculture for the benefit of all stakeholders Their mission focuses on empowering rural communities to engage more actively, improve their livelihoods, and amplify the social and economic impacts of agricultural development By prioritizing market creation, sustainable agri-services, and rural business partnerships, Taungthutada aims to support farmers, women, and youth in rural areas, ultimately striving for a more equitable and sustainable future.
The team established a dedicated Facebook Page and conducted thorough research to create accessible agricultural content tailored for Shan farmers Within three months, they participated in an ASEAN-level boot camp and provided support to 20 farmers via messenger chats and phone calls, while also publishing 33 educational posts specifically for garlic farmers Additionally, Taungthutada organized 28 events across 27 villages, engaging a total of 2,148 farmers, and successfully onboarded 21 farmers to cultivate and sell chili.
5 with them Seedbed farming process is in progress Assisting 20 farmers through messenger chat and phone call and published 33 educational posts for garlic farmers
Taungthutada offers innovative extension services to contracted farmers, including seedbed farming and seeding techniques for chili cultivation The organization has provided intensive training on seeding methods to 12 farmers and farm laborers Additionally, Taungthutada collaborates with private companies to supply fertilizers and pesticides at discounted rates and through installment plans, enhancing support for local farmers.
LITERATURE REVIEW
Agriculture and Rural Community Development in Myanmar
Agriculture is vital to Myanmar's economy, contributing 38% to its GDP and 32% to exports in 2020, as reported by the World Trade Organization in 2022 This sector also offers significant potential for alleviating poverty and fostering social development, as a majority of the impoverished population resides in rural areas where their primary source of income is agriculture.
The Myanmar government is advancing rural development by implementing a national strategic plan with eight key priorities to improve the socio-economic welfare of its citizens Since 2011, various initiatives have been launched to promote rural development and decentralization, focusing on poverty alleviation through collaboration with international organizations Policymakers are prioritizing the agricultural sector as a vital component in driving rural development in accordance with the national strategic plan.
Rural development focuses on both economic growth and societal change in rural villages, aiming to improve the welfare of the rural population by eradicating poverty, ignorance, and inequality Initiatives have been launched to reduce rural poverty and enhance living standards for those below the poverty line However, rural areas often face challenges such as limited access to basic amenities, insufficient health and social services, and geographical isolation.
Rural development, as defined by the World Bank (2000), encompasses a range of interventions aimed at improving social and physical infrastructure, financial services, and non-farm small and medium enterprises in rural areas and market towns, which are crucial to the rural economy This approach recognizes the potential for increased economies of scale in these regions and emphasizes the importance of enhancing traditional rural industries, such as agriculture and natural resources The provision of essential social and physical infrastructure, along with financial services, plays a vital role in this development strategy.
7 primary factors that can foster rural development The interaction between these three factors might enhance the living conditions of rural households
Rural poverty significantly surpasses urban poverty, with 40% of individuals in coastal and mountainous areas living below the poverty line, and one in six unable to meet basic needs Access to credit is limited, as only about one-third of farming households obtain formal or informal loans, and the amounts provided to those in poverty are often insufficient (UNDP, 2017).
Redesigning government policies and programs poses significant challenges, particularly given that approximately 70 percent of the population lives in rural areas where agriculture serves as the economic backbone As a result, tackling various forms of poverty to promote socioeconomic progress and development has emerged as a critical issue.
Social Enterprise
In the late 1970s, the UK introduced the concept of social enterprises to differentiate them from traditional commercial enterprises These organizations operate at the intersection of for-profit and not-for-profit sectors, striving to balance financial returns with social benefits like low-income housing and job training The OECD defines a social enterprise as a private activity aimed at the public interest, utilizing an entrepreneurial approach, with a focus on achieving economic and social objectives rather than solely maximizing profits They provide innovative solutions to issues such as social exclusion and unemployment.
Social enterprises are hybrid organizations that blend for-profit and nonprofit characteristics (Eversoe, 2014) In rural communities, they act as a bridge between local and global contexts, enhancing the understanding of cross-scale connections essential for community development in today's globalized world (Berkes & Davidson-Hunt, 2007) Furthermore, rural entrepreneurship has proven to be a crucial strategy for alleviating poverty, curbing rural migration, and expanding employment opportunities in these areas (Ansari, 2013).
According to scholars Nicholls (2006) and Dart, the concept of social enterprise lacks a clear and precise definition at present (2004) This ambiguity is evident in
This article explores eight key aspects of social enterprises, focusing on how commercial activities are leveraged to achieve social objectives It examines the relationship between the products or services offered and the intended social goals, the degree of integration between business operations and social initiatives, and the interconnectedness of social enterprises with the wider activities of the organization.
Social enterprises must illustrate their contribution to 'social value' to create a meaningful social impact (Barraket & Anderson, 2010) While the structural definition of social enterprises can be complex, they commonly adhere to principles that mobilize resources from various sectors to achieve developmental goals (Eversole, 2012) The literature has evolved the concept of social entrepreneurship into a multifaceted framework that includes risk-taking, a balanced evaluation of financial and social returns, and a belief in entrepreneurship's potential to foster social change, all while navigating environmental constraints and sustainability requirements aligned with their social mission (Weerawardena & Mort, 2006).
Rural Community Development
Smith (2017) presents an integrated framework for rural community development that prioritizes the involvement of local community members and collaborative efforts among stakeholders In a comparative study, Johnson et al (2018) investigate various definitions and conceptualizations of rural community development, underscoring the necessity for context-specific strategies Additionally, Thompson (2019) highlights the critical role of social capital in rural community development, focusing on how social networks, trust, and community engagement contribute to achieving sustainable outcomes.
A study by Martinez et al (2020) highlights the importance of entrepreneurship, local value chains, and agricultural activities as key drivers of economic growth and sustainability Complementing this, Green (2021) explores the integration of sustainable environmental practices in rural community development, focusing on eco-tourism, renewable energy, and natural resource management to achieve both environmental and economic sustainability.
(2018) also examine the role of technology and innovation in enhancing access to services, improving livelihoods, and bridging the urban-rural divide through digital connectivity and e-governance
Brown et al (2019) highlighted the importance of community-based approaches that prioritize local participation, empowerment, and capacity building as essential elements for successful bottom-up initiatives in rural areas Anderson (2021) examined the policy frameworks and governance structures that facilitate rural community development, focusing on the influence of government policies and multi-level governance in achieving sustainable outcomes Additionally, Davis et al (2018) explored methodologies for measuring the impact of rural community development programs, including indicators, evaluation frameworks, and monitoring systems to assess their effectiveness and sustainability.
Social Enterprise in Agricultural and rural community development
Social enterprises are increasingly recognized as vital contributors to local development, particularly in rural areas, as they facilitate resource mobilization and enhance food security within the agricultural sector (Eversole, 2013) To promote sustainable rural development, it is suggested that similar social entrepreneurship initiatives be replicated in other villages in Sudan and underdeveloped nations, with strong support from local communities (Muhmode, 2021) Rural entrepreneurship addresses critical issues such as unemployment, poverty, and economic diversification, significantly improving the lives of villagers (Ansari, 2013) Furthermore, Rural Social Entrepreneurship (RSE) serves as a fundamental component of rural socioeconomic development (Ahrari et al., 2018).
Social enterprises have emerged as vital players in addressing the significant social and economic challenges faced by remote and rural areas, enhancing the long-term sustainability of these communities (Vias, 2009) Notably, recent initiatives in upcycling waste food highlight the innovative approaches taken by social enterprises, as noted in the 12th Global Conference on Sustainable Manufacturing Promoting rural entrepreneurship is essential for achieving sustainable rural development, with entrepreneurship recognized as a key strategy for economic and social progress (Ansari, 2013) Social enterprises are characterized not by their industry but by their commitment to social impact (Somerville and McElwee, 2011).
0 unique interaction with the social surroundings from which they originate This suggests that social enterprises have a substantial relationship to local communities and locales
Supporting entrepreneurship in rural areas empowers individuals to start and manage their own businesses, leading to economic growth and enhanced job opportunities Promoting rural entrepreneurship ultimately fosters sustainable development, benefiting both individuals and their communities.
Social Enterprise in Myanmar
Myanmar's social economy is in its early stages but shows promising growth potential The journey began post-independence in 1948, though military socialist rule from 1961 led to significant underdevelopment and isolation Recently, Myanmar's social economy has gained momentum, attracting increasing investor interest due to the potential of social enterprises to tackle critical societal challenges while achieving sustainable financial returns.
Institutional philanthropy has been vital in advancing social enterprise development in Myanmar, with support from organizations like the Japanese Government, Australia's development assistance program, and USAID This backing has led to significant growth in Myanmar's impact investment market, as private funds and development finance institutions bring essential capital, expertise, and networks to social enterprises, helping them expand their operations and enhance their impact.
Incubators and accelerators play a crucial role in Myanmar's socio-economic landscape by supporting social ventures and enhancing their sustainability They provide vital resources such as mentorship, networking opportunities, and business development, which are essential for the growth of social enterprises According to organizational development expert Henrich Dahm, these entities enable social enterprises in Myanmar to effectively create social impact.
Social enterprises in Myanmar leverage innovative, business-oriented models to effectively meet community needs while generating revenue This approach not only ensures sustainability and long-term impact but also distinguishes them from traditional non-profit organizations By fostering inclusivity and collaboration, social enterprises demonstrate a strong commitment to their communities, building trust and mobilizing local resources to maximize positive change.
The research conducted by Kyaw, K HMoe, M H., & Myo M A (2020) explores the social enterprise ecosystem in Myanmar, focusing on the regulatory framework that impacts these entities It identifies critical funding sources and support mechanisms essential for social enterprises The study underscores the significance of favorable policies and regulations that facilitate the effective operation of social enterprises and their access to vital resources for growth.
Chaw, C Sein., Win, W H., & Chaw, T T (2019) explore how social enterprises in Myanmar foster connections between local communities and international markets, highlighting their potential to alleviate poverty and promote sustainable economic growth By linking local producers with global markets, these enterprises facilitate inclusive and equitable development, ultimately contributing to community advancement.
Aye San Mon's (2018) comparative study examines the growth of social enterprises in Myanmar, highlighting the experiences of social entrepreneurs and identifying key factors that influence their development The study addresses the challenges and opportunities these enterprises encounter, offering valuable insights into successful strategies Additionally, the report by Rani Deshpande and Yuwa Hedrick-Wong (2018) delves into scaling impact within Myanmar's social enterprise ecosystem, analyzing growth drivers and potential barriers It provides actionable recommendations for policymakers, investors, and support organizations to create a supportive environment for the sector's advancement and expansion.
The study by Hla, H H., Mie, Mie K., & Chea, Sovichea (2017) explores the impact of social enterprises on sustainable development in Myanmar, focusing on their contributions to poverty alleviation, environmental conservation, and social empowerment It underscores the transformative potential of these enterprises in advancing the United Nations Sustainable Development Goals (SDGs) and stresses the necessity of adopting holistic and long-term strategies for sustainable development.
The social enterprise ecosystem in Myanmar is evolving, yet it faces challenges like regulatory complexities and scaling barriers To enhance the growth and impact of social enterprises, it is essential for policymakers, investors, and support organizations to create an enabling environment through targeted interventions and comprehensive strategies.
Before the pandemic, Myanmar's development trajectory was already leaning towards economic reforms aimed at fostering a more liberal business environment The country saw a significant reduction in poverty levels, dropping from 48% in 2005 to 25% in 2020; however, it continues to face various social and environmental challenges (Burma - The World Factbook 2021) Despite the relatively small size of the social economy sector, several initiatives have emerged to promote growth, with practitioners recognizing the vital role of international organizations like the British Council in formalizing these efforts.
The Social Enterprise (SE) concept in Myanmar aims to attract international expertise and foster partnerships with local organizations to build a robust Social Enterprise network and enhance community growth However, the sector faces various internal and external challenges, mirroring issues encountered by the emerging private sector in the country, as noted by the British Council in 2013 Despite positive signs and promising examples of Social Enterprises, these obstacles hinder the sector's development.
Access to capital remains a significant challenge for Social Enterprises, as loan financing is often scarce and bank lending typically favors individuals with strong connections The investment needed, usually between US$50,000 and US$250,000, is perceived as too small to attract serious investors, while the absence of protections for these modest investments further discourages potential backers.
The current international donor funding structure poses significant challenges for Social Enterprises, as it primarily emphasizes project-based funding and often excludes essential core expenses like staff salaries This restriction undermines organizational sustainability, leading many Social Enterprises to rely heavily on volunteers Furthermore, international donor interventions frequently overlook the critical capacity-building needs of these organizations, including the establishment of governance systems, long-term strategic planning, and effective impact measurement frameworks.
The evolving political and economic landscape in Myanmar poses significant challenges for social enterprises, as the swift changes and the introduction of new legislation hinder their ability to formulate long-term strategic plans.
Myanmar's political and economic landscape is rapidly evolving, complicating long-term strategic planning for organizations Established social enterprises and organizations have successfully collaborated with the government, prioritizing positive social impact, particularly through livelihood initiatives in agricultural communities To ensure sustainable outcomes, it is essential to balance the promotion of civil society, enhance capacity building for social entrepreneurs, and secure funding from local foundations.
Social Enterprise in Viet Nam
In Vietnam, a "social enterprise" is defined as a business that aims to tackle significant social or environmental challenges while maintaining financial viability These enterprises can be established by non-profit organizations to generate revenue or further their social missions, or they may be for-profit entities with strategies focused on social goals The Entrepreneurship Law of Vietnam, enacted in 2014, officially recognizes social enterprises as a distinct category of business Recent reports from the British Council, ESCAP, and Social Enterprise UK highlight that 80% of Vietnamese social enterprises have demonstrated positive performance, with 50% of their profits shared with staff and beneficiaries, marking the highest allocation rate in Southeast Asia.
Research conducted by the Center for the Promotion of Social Initiatives (CSIP) in 2011 has examined the state of social enterprises in Vietnam, particularly in Hanoi and Ho Chi Minh City Scholars such as Nguyen Dinh Cung et al (2012) have explored the concept of social enterprises both in Vietnam and globally, assessing the current landscape and suggesting policy changes to foster the development of these organizations Additionally, Dang Kim Son and Nguyen Minh Tien (2012) studied cooperative groups in Taiwan, drawing valuable lessons that could benefit the advancement of agricultural cooperatives in Vietnam.
However, the study of social enterprises in Viet Nam is limited due to the novelty of their introduction in 2008
The agricultural sector of Viet Nam has a significantly large production capacity However, the dearth of agricultural support industries and low labor productivity leads
The Vietnamese agricultural market is experiencing high costs for various products, and while there is potential for increased competitiveness, farmers and agricultural enterprises face significant challenges without enhanced competitiveness Despite government efforts to improve capacity and support social enterprises through partnerships with NGOs, actual support for the social enterprise sector remains lacking, as noted by Umfreville and Bonnin (2021) This aligns with Phan and Nguyen's (2017) observation of substantial barriers faced by social enterprises in Vietnam Many choose not to register for official recognition due to factors such as bureaucratic hurdles, a lack of perceived benefits, concerns over loans, distrust, and fears of corruption.
Illustrating the symbiotic link between the state and civil society, the Vietnamese government may play a vital role in overcoming these obstacles and promoting opportunities
Vietnam's extensive agricultural sector presents significant opportunities for social enterprises to positively impact small-scale farmers and rural communities while achieving financial sustainability Many farmers still depend on traditional practices and face challenges in accessing markets and earning fair incomes By offering training in sustainable farming methods, such as organic and regenerative practices, social enterprises can empower farmers to improve their production Additionally, addressing the lack of infrastructure and transportation access, these enterprises can establish distribution channels and logistics networks that effectively connect farmers to markets and consumers, enhancing their economic prospects.
Recent research by Nguyen et al (2021) highlights the social mission of social enterprises, focusing on their role in fostering socio-economically inclusive community services and creating quality job opportunities for marginalized groups, including individuals with disabilities.
The Vietnam Enterprise Law of 2014 outlines the characteristics of social enterprises, which must be established under the Law on Enterprise to tackle community social and environmental issues These enterprises are required to reinvest at least 51% of their profits towards achieving their social and environmental objectives Recognizing the significant role of social enterprises in addressing these challenges, the Vietnamese government facilitates their growth by allowing access to foreign aid Consequently, the social enterprise sector in Vietnam presents substantial opportunities for growth and expansion.
RESEARCH DESIGN AND METHODOLOGY
Research Design
The author presents a comprehensive conceptual framework that highlights key variables in the research, focusing on how social enterprises can enhance agricultural and rural community development during health and political crises In this study, social enterprises and farmers are identified as the main independent variables, significantly impacting rural community development, which serves as the dependent variable Additionally, challenges and opportunities act as a moderating factor that affects the relationship between social enterprises, farmers, and rural community development Social enterprises provide essential resources like loans, training, and agricultural inputs to smallholder farmers, which in turn influence both the farmers and the broader rural community development Despite these contributions, there are ongoing challenges and opportunities that need to be addressed for effective planning of social enterprises' roles in agricultural and rural development in Myanmar This framework aims to clarify these interrelated concepts.
Figure 3 1 Conceptual framework of the study
This study explores the impact of agricultural Social Enterprises in rural Myanmar, highlighting their contributions and the challenges they encounter Through qualitative case studies of Proximity Designs and Farmers' Bridge (TTTD), the research examines the role of Social Enterprises during the economic crisis, focusing on their support for smallholder farmers The findings suggest that Social Enterprises can be a viable source of assistance and opportunity for the agricultural sector in Myanmar, especially in challenging times.
Research Methodology
This study employs qualitative research through a case study approach, examining the challenges and opportunities faced by Agricultural Social Enterprise organizations in Myanmar amidst the political crisis and post-Covid-19 pandemic It emphasizes the role of social enterprises in supporting smallholder farmers and fostering rural community development The research will involve two agricultural social enterprises and will include in-depth interviews with key stakeholders, comprising 10 senior and middle managers, field staff, and 10 farmers, using semi-structured questions to enhance the qualitative analysis.
According to Alshenqeeti (2014), semi-structured interviews are the most commonly used method in qualitative research, requiring careful preparation of topics and questions The author highlights the benefits of conducting face-to-face interviews, which enable researchers to gather a substantial amount of data Opdenakker (2006) further emphasizes that these in-person interactions create a comfortable atmosphere, facilitating the effective collection of essential information from participants.
The process of analyzing qualitative data involves understanding and interpreting the perspectives and opinions of research participants regarding various situations This
Qualitative data analysis focuses on identifying recurring patterns, themes, and commonalities in participants' views and opinions (Cohen et al., 2007) In social sciences, qualitative semi-structured interviews are widely used for data collection, offering researchers the opportunity to explore subjective viewpoints in depth (Bradford & Cullen, 2012; Flick, 2009).
This research utilized online data and reports from government agencies and relevant stakeholders, including associations related to social enterprise businesses Due to travel restrictions in Myanmar, the study focused on two case studies, making it difficult to engage with organizations in the agricultural sector and connect with farmers in rural areas.
The inclusion criteria for respondents were as follow:
1 Field staff and middle level manager and senior management from Proximity Designs and Farmers’ Bridge-TTTD
2 Farmers’ who have been using the products and services from the social enterprises
The research was conducted with a number of ethical factors in consideration
Confidentiality - All the participants of the study participated as voluntary and all the collected data are only for academic purpose
Reliability - All the participants are informed that their responses are anonymous
Validity - All the collected data are related to Social Enterprise and agricultural and rural communities
The researcher chose not to disclose the personal profiles of respondents in Myanmar to address security concerns, ensuring that there were no major ethical or risk-related issues for either the researchers or the participants in the study.
3.2.2 Reason for choosing the case studies
The researcher chose Proximity Design and Farmers’ Bridge-TTTD as case studies because they are both social enterprises with a focus on agriculture and rural development
Proximity Design is a prominent social enterprise in Myanmar, established in 2004, dedicated to enhancing the prosperity of rural families through innovative product design and services tailored for farmers By employing human-centered design principles, Proximity Design offers a diverse range of solutions, including microfinancing, technical training, and irrigation products, aimed at increasing agricultural productivity and income Their impactful work has garnered recognition, earning awards from the Skoll World Foundation and other organizations, positioning Proximity Design as a leader in socially responsible development.
Farmers’ Bridge (TTTD) is a progressive social enterprise dedicated to enhancing information access for farmers in conflict-affected Southern Shan State, Myanmar By partnering with e-commerce platforms, they supply Shan vegetables and fruits, promoting sustainable growth in rural economies The organization addresses the critical issue of limited access to agricultural information, which impacts farmers' livelihoods Comprised mainly of members from farming families, the TTTD team leverages local knowledge to develop effective solutions tailored to the community's needs Their commitment to innovation and adaptability is evident as they successfully pivoted their strategy during the global pandemic and political crisis, ensuring continued support for agriculture and rural development.
Examining Proximity Design and Farmers’ Bridge (TTTD) offers valuable insights into diverse strategies for social enterprise within rural development and agriculture, highlighting both their achievements and obstacles.
3.2.3 Data collection instruments and analysis procedure
The survey consisted of two sections, gathering socio-demographic data from respondents and assessing the current and potential challenges and opportunities faced by Social Enterprises It also explored the impact of Social Enterprises on rural communities and the agricultural sector, while offering recommendations to enhance their role in these areas.
Section 1: Demographic and general personal questionnaires The author constructed the questionnaires It contained five questions concerning the respondent's education, age, gender, location, employment status and service year
Section 2: For in-depth interviews, the author assessed the questions derived from the literature and past findings, as well as additional follow-up questions based on the interviewee's responses
The author conducted in-depth interviews with 20 participants, including 10 individuals from organizational backgrounds and 10 farmers, utilizing online platforms such as Zoom and Messenger The interview questionnaires, designed around research questions, featured open-ended queries in Burmese to enhance outreach effectiveness Each interview was subsequently transcribed into English to facilitate interpretation and analysis.
The analysis of in-depth interview responses was conducted using QDA Miner qualitative software, which facilitated coding and qualitative data analysis The author organized the participants into two main groups: Social Enterprises and Farmers, labeling the ten Social Enterprise representatives as E01 to E10 and the ten farmers as F01 to F10 Through line-by-line coding of the interview data, the author identified key categories and major themes based on the responses and analytical methodology employed.
Limitation of the Study
During the crisis, this study collected data from two Social Enterprises in the Agriculture sector as opposed to different Social Enterprises in urban and other sectors
Future research should focus on gathering data from various social enterprises across different industries that deliver goods and services to agricultural and rural sectors in Myanmar Given the current situation in the country, this study is unable to obtain data from the Ministry of Agriculture (MOA) under the State Administration Council.
2 scenario, additional research should analyze the viewpoints and tactics of both ministries about the enhancement of the role of Social Enterprises in agricultural and rural community development
FINDINGS AND DISCUSSION
The role of Proximity Designs and Taungthutada in the agricultural sector and rural
This analysis is based on a latest donor report from Proximity Designs and updated yearly impact survey report According to this report, Proximity Designs served
In the first half of 2022, the organization attracted 57,772 unique customers, with approximately 70% being new clients, driven by high demand for their cost-effective biological fungicide, Trichoderma, as an alternative to increasingly expensive chemical pesticides Their pest and disease protection products have become the cornerstone of their business, significantly contributing to farmers' income by enhancing agricultural productivity By providing specialized services like seed selection, soil health management, fertilizer application, and pest control, the organization empowers farmers with crucial knowledge and techniques throughout the growing season.
Proximity Design's annual impact survey reveals that their services have significantly boosted farmers' crop productivity, resulting in an average yield increase of 10% to 15%, which in turn enhances their income growth.
In the fiscal year 2023, the organization aims to support 72,000 farmers, significantly enhancing their livelihoods By providing products and services that lead to an average annual revenue increase of $436 per farmer, the organization not only boosts agricultural yields but also delivers substantial economic benefits, ultimately improving farmers' overall income and quality of life.
The organization offers low-interest financial loans at a 2% annual rate, positively impacting farmers and rural communities by providing an affordable alternative to high-interest loans With five innovative loan products tailored to rural entrepreneurs—crop loans, livestock loans, small business loans, on-the-go loans, and hybrid loans—the organization addresses unique financial needs The crop loan, its most popular option, supplies essential working capital for input costs, averaging between 250,000 to 600,000 kyats ($178-$427 USD) Since 2012, the organization has directly lent to over 250,000 smallholder farmers across 3,500 villages, amassing a loan portfolio of approximately $77 million by 2021 By offering affordable financing, the organization aids farmers and small business owners in stabilizing their finances, eliminating high-interest debt, and fostering sustainable development in rural areas, ultimately enhancing the livelihoods of community members.
Yetagon Irrigation, part of Proximity Designs, is significantly impacting rural farmers by providing essential services across 223 townships Customers utilizing these services have seen an impressive annual median income increase of $250 Committed to supporting rural agriculture, Yetagon Irrigation aims to expand its customer base to 20,000 in fiscal year 2023 Currently, the initiative boasts 112,617 active users who are benefiting from its innovative irrigation solutions.
5 is also playing a crucial role in empowering rural farmers and contributing to the growth of the agricultural sector
The author received the latest report in 2023 and data of their organization’s activities from the Farmers’ Bridge - Taungthutada for the analysis
Total cumulative number since the beginning of project
Table 4 1 Total youth and women employed in Kayah Chili farming
Taungthutada is significantly impacting the agricultural sector by enhancing employment opportunities for women and youth while promoting good agricultural practices Its mission to foster growth in rural economies and agriculture aims to benefit all stakeholders By prioritizing market creation, sustainable agri-services, and rural business partnerships, Taungthutada is dedicated to building a more equitable and sustainable future for farmers, women, and youth in rural areas, particularly in Hsi Hseng Township, Shan State.
Cumulative number since the beginning of project
Table 4 2 Total farmers have been introduced with new technology (farmer meeting, demonstration event, other activities)
The organization has significantly impacted the farming community by engaging with a total of 2,597 farmers who have participated in meetings since the project's inception, highlighting the effectiveness of its outreach efforts in contract farming.
Taungthutada has facilitated the planting of chili across 23.5 acres of farmland of 52 farmers
Total cumulative number since the beginning of project
Table 4 3 Total farmers engaged for solar Irrigation service (Source: TTTD)
Additionally, Taungthutada has supported 25 farmers by providing them with group solar irrigation renting services, enhancing their irrigation capabilities sustainably according to table (4.3)
Total cumulative number since the beginning of project
Table 4 4 Total youth and women employed in Kayah Chili farming (Source: TTTD)
Taungthutada's initiatives have successfully employed 13 youth and women in Kayah Chili farming, highlighting the organization's commitment to creating opportunities for underrepresented groups in agriculture By empowering these individuals and involving them in farming activities, Taungthutada promotes inclusive growth and economic development in the community Their multifaceted approach, which includes advocating for good agricultural practices, supporting employment for women and youth, and fostering community engagement, reflects a strong dedication to advancing the agricultural sector and enhancing the well-being of the local community in Hsi Hseng Township.
4.1.2 Cost efficient and income generating
In a recent survey, it was found that 60% of farmers participated in agricultural technique training offered by Proximity Designs and Taungthutada This training included essential topics such as selecting quality seeds, effective fertilizer application, and pest and disease prevention strategies.
Attending the training meeting significantly improved my farming practices, allowing me to reduce fertilizer expenses Previously, I used four bags of fertilizer per acre, but I learned that three bags are sufficient This change resulted in savings of approximately 210,000 Myanmar Kyat (MMK), equivalent to around 100 United States dollars.
Dollar (USD) for my 3 acres
He attended a training session on effective fertilizer usage in his neighborhood, where he gained valuable insights that he shared with local farmers This knowledge helped them collectively reduce their fertilizer expenses Following this, they all participated in a second meeting focused on pesticide awareness.
In a recent interview with a farmer from the delta area, it was disclosed that his six-acre farm suffered from an infestation of brown plant hoppers, affecting around three acres during the COVID-19 pandemic in 2020 Despite investing 300,000 MMK in pesticides from a local store and applying them several times, the pest problem persisted Fortunately, after being referred by the village chief, the farmer received valuable guidance from the Farm Advisory Services (FAS) at Proximity Designs A field staff member recommended draining the field and improving ventilation for the rice plants before reapplying pesticides to eliminate the pests and curb their reproduction Following this advice, the farmer noticed remarkable improvements within just a week.
"I don't really know how to thank the Farm Advisory Services team, " he stated “I would have lost three acres of my crops if I had not met them
Now I had earned 1.4 million MMK ~ 650 USD during that season, so I invited the entire FAS office to lunch.”
Farmers play a vital role in their communities by sharing valuable knowledge and skills gained from social enterprises By learning about sustainable farming practices, advanced technologies, and innovative business models, they can enhance their yields and secure fair incomes This acquired knowledge can then be disseminated among fellow farmers, promoting best practices and boosting overall productivity within the community.
F06 added, "I advised everyone I meet to contact the FAS team and share my personal experience so that the majority of the farmers in my
8 village become Farm Advisory Services (PD) clients We use Proximity
Designs' financing and solar pump products in addition to their farm advisory services.”
According to farmer interviewee F10, a village chief who is also a farmer and maintains a strong relationship with the Taungthutada and Proximity Designs,
The Covid-19 pandemic and political instability have restricted employee access to the village, but farmers can still receive support through the TTTD and PD Facebook page for farming challenges These timely posts offer valuable guidance on soil management and pest control.
The village chief personally contacted Taungthutada through Facebook Messenger to ask about the Chilli crop, while PD's Facebook page regularly features information about weather and rice Farmer interviewee F10 discuss:
I created a messenger group with proactive farmers to exchange newly acquired knowledge and insights, while also encouraging contributions from information found in other Facebook groups This collaborative approach has significantly benefited our farming efforts and enhanced our knowledge, which is particularly vital during the Covid-19 pandemic and ongoing political crisis.
Challenges
Since the military coup in Myanmar two years ago, the State Administration Council (SAC) has maintained control by extending the "state of emergency," raising concerns about the potential delay of the 2023 elections In response, civilian-led armed forces have intensified their attacks on military targets and collaborators, signaling a significant increase in resistance against the military regime.
All indications suggest that the political deadlock will persist for an extended period
Myanmar's economy is experiencing a significant downturn, leading to sharp price hikes for essential goods Ordinary citizens face challenges in earning daily wages and feeding their families Additionally, rising violence in rural regions has displaced nearly 1.5 million people from their homes.
As farmers in Myanmar decrease their investments and inputs in agriculture, the risk of insufficient food production rises, threatening to create food shortages that could affect the broader region.
Social enterprises operating in the agricultural sector face several challenges that hinder their success and sustainability S01 shared:
Funding and talent shortages pose significant challenges for social enterprises, highlighting a notable skill gap in the sector Bridging this gap requires proactive measures, as hiring new employees often entails extensive training Moreover, high staff turnover exacerbates the difficulties faced by these organizations, hindering their ability to operate effectively during challenging times.
The volatility of the agricultural market presents significant challenges, particularly with fluctuating input prices that can be up to three times higher than expected This instability impacts the relationship between social enterprises and farmers, especially in chili farming, where prices often surpass initial projections Such unpredictability complicates the establishment of stable and sustainable partnerships with farmers.
The political and social context greatly influences all stakeholders, particularly farmers who face significant crop losses due to border gate closures and market challenges Additionally, securing funding is increasingly difficult for social enterprises, which rely heavily on their own income and have limited access to external financial support.
The heightened political sensitivity in regions served by Farm Advisory Services complicates interactions with diverse ethnic groups, some of which have experienced conflict This situation demands careful communication with farmers, as the deteriorating security landscape restricts the operations of social enterprises, which are under increasing scrutiny from the military regime In such a challenging context, it is essential to collaborate with local actors who have the requisite knowledge, trust, and established relationships to navigate these complexities effectively.
5 the local communities Their involvement allows them to access and establish entry points for field work under conflict affected areas
“Government reports and initiatives targeted at refugees face additional challenges as they may not be accepted by the military government.” S01 added
The anticipated electricity shortages are likely to intensify due to the military administration's lack of new investments and inadequate power generation capabilities, significantly hindering the overall economy and business climate This situation adversely affects our employees' ability to work remotely and from field offices, complicating access for farmers to our digital channels Additionally, we foresee persistent challenges in banking stability, import restrictions, logistics bottlenecks, and currency depreciation, all of which will continue to impact our operations at nearly every level.
The sector faces internal challenges, notably the brain drain phenomenon, which leads to a shortage of skilled individuals as talented professionals seek better opportunities abroad This talent scarcity significantly hinders the growth and development of the sector.
Inflation and rising input costs pose significant challenges for farmers, forcing them to confront increased expenses This financial pressure may lead them to reconsider their crop selections or downsize their operations Such changes are essential for mitigating the economic impact of inflation and maintaining the sustainability of their farming practices.
“Our organization is currently facing the need to broaden our extension service for cultivating new crops, which requires the expertise of specialists and the training of field staff.”
Additionally, microfinance institutions encounter notable difficulties stemming from delinquency This situation negatively impacts their ability to provide financial support to farmers and other stakeholders This interviewee added,
Our microfinance team has historically been a dependable source of financial support for our organization Unfortunately, the ongoing civil war in certain townships has hindered our ability to collect loan repayments, forcing us to implement cost reductions to manage our expenses effectively.
Another challenge is the security issue due to the political unrest in Myanmar The interviewee S09 shared:
“Unfortunately, our field staff are prohibited from entering these affected villages, and as a result, we have had to terminate the employment of field staff in some of these townships.”
The challenges faced by these institutions impede their operations and hinder their efforts to contribute effectively to the development of the agricultural sector
On the other hand, farmers are also facing the challenges regarding microfinance due to inflation One of the interviewees, F07 shared:
The cost of agricultural inputs has surged significantly, with fertilizer prices increasing from approximately 30,000 MMK (15 USD) per bag to around 100,000 MMK (50 USD), reflecting a threefold rise Consequently, the loans available from microfinance or government sources remain insufficient when compared to the escalating expenses faced by farmers.
● Unstable Political and Social context
● Difficulty to work with government
● Increasing the poverty of farmers
Table 4 5 Challenges of agricultural social enterprises in Myanmar to play their role
Opportunities
Despite the challenging circumstances in Myanmar, there are emerging opportunities for the future as companies increasingly collaborate with International Non-Governmental Organizations (INGOs) and adapt their business models for survival This openness paves the way for impactful social entrepreneurship initiatives that can significantly benefit conflict-affected and remote regions By providing job opportunities and skills development to marginalized groups, particularly men and women from ethnic minority communities, these initiatives help bridge gaps in access to markets and services, ultimately empowering these communities economically.
In Myanmar, the ongoing crisis presents an opportunity for enhanced international support and funding, particularly as some international non-governmental organizations (INGOs) and government agencies face operational challenges Meanwhile, social enterprises remain active, providing crucial assistance to farmers during these difficult times.
Donor organizations are currently in discussions with us to provide support for the refugee camp in Shan State, focusing on initiatives like vocational training and small-scale farming for internally displaced persons.
As S01 shared in the problems solving section,
Securing funding is more likely when local partnerships are established, as donor organizations favor projects that involve collaboration with other entrepreneurs and private companies Such collaborations enhance resource sharing and seed funding opportunities, which can lead to additional financial benefits.
Donor organizations are increasingly pursuing partnerships with social enterprises, local organizations, private companies, and entrepreneurs These collaborations are designed to harness the unique strengths and resources of each entity, ultimately fostering sustainable and impactful solutions for social and economic development.
Other opportunity according to the interviewee S04 discussed:
“There is plenty of land where irrigation is available in many Village tracts in Shan state, various sorts of crops should be introduced and
8 linkage with market for mass volume of farm produce is needed.”
Moreover, increasing soil fertility in corn cultivated farms is to be considered to grow alternative crops in the Hsi Hseng township in Shan
The interviewee S09, from the microfinance business unite shared:
“We are negotiating with the private bank to invest in our organization
Moreover, we have a plan to look for investment from international financial institutions as well.” but the interviewee did not want to explain about the plan and progress
Opportunities ● Increased attention of INGO and Business
● Food safety for the IDPs
● Partnership with different stakeholders in the future
● Funding availability in the future after the crisis is over
● Extension to new crop and new region
Table 4 6 Opportunities of agricultural social enterprises in Myanmar to play their role