The Rise of Social Enterprises in Ethiopia

In 2018, Social Enterprise Ethiopia (SEE) was born into a landscape where the idea of social enterprises was still a foreign concept. But Adenew Mesfin, the CEO, saw something the rest of Ethiopia did not: a way for businesses to serve the greater good. ‘Social enterprises,’ he says, ‘Are powerful tools to tackle Ethiopia’s challenges—poverty, unemployment, environmental degradation.’

‘When Social Enterprise Ethiopia (SEE) was founded in 2018, the concept of social enterprises was still relatively unknown in Ethiopia,’ says Adenew Mesfin, the CEO. His journey—from working in health, gender equality, and HIV prevention to exploring the intersection of business and social good—took a pivotal turn in 2017 when he joined the British Council to lead the Social Enterprise World Forum, a landmark event for Ethiopia’s emerging social enterprise sector.

‘We saw social enterprises as powerful tools to tackle Ethiopia’s pressing challenges—poverty, unemployment, environmental degradation, and inequality,’ he adds. Blending profit with solutions to these challenges seemed ideal for a country with potential. SEE’s establishment brought increased media attention and public awareness to the sector.

One of its first challenges was Ethiopia’s lack of a legal framework for social enterprises. Organisations had to register as NGOs or Private Limited Companies, neither of which fully encapsulated their dual mission. Despite this, SEE attracted a committed group of fifty to sixty social enterprises that embraced the model despite the difficulties of operating in a developing economy.

Just as they began to make strides, the COVID-19 pandemic hit, posing significant challenges and highlighting its members’ resilience. Some members swiftly pivoted, producing masks and distributing essentials needed at the time, while others remained operational, contributing actively to the national pandemic response.

Systemic Hurdles

SEE has faced several hurdles, including financial challenges as donor funding declined, exacerbated by the conflict in northern Ethiopia and global instability. This spurred a focus on financial sustainability, prompting it to explore alternative revenue streams and reduce reliance on traditional grants.

Policy development remains a key obstacle. The absence of formal recognition has hindered the sector’s ability to access key resources, such as government support and tax incentives. Nevertheless, SEE has raised awareness among government officials and policymakers by advocating for a social enterprise law in Ethiopia. This legal recognition is expected to provide tax incentives and improve access to resources, enabling the sector to scale its impact.

SEE’s membership has grown, including diverse entrepreneurs addressing societal challenges through innovative business models. A standout example is a restaurant initiative supporting the rehabilitation of former sex workers, offering culinary training and employment. This initiative has an impressive 87 percent success rate in helping participants transition to new livelihoods.

SEE is also a key player in the Network of African Social Enterprises (NASE), a regional collaboration that strengthens the social enterprise ecosystem across Africa. SEE’s role in co-organizing the 2024 Annual African Conference on Social Enterprise Conference in Kenya will expand connections and opportunities for the sector.

Looking ahead, SEE is embracing new technology to amplify its impact, transitioning to digital systems and encouraging members to integrate advanced tools into their operations. It also advocates for integrating social entrepreneurship into Ethiopia’s education curriculum to inspire future generations of socially conscious entrepreneurs.

Adenew’s advice for aspiring entrepreneurs is succinct: ‘Make your life count.’ He emphasises that lasting impact, rather than wealth alone, defines a legacy. Through innovation, resilience, and a focus on social good, SEE and its members are reshaping communities and fostering a brighter future.

Sofia’s Spark

Its growth reflects the broader evolution of Ethiopia’s social enterprise ecosystem, where passionate individuals have emerged to champion change. One such individual is Sofia Abdulkadir, whose journey into social entrepreneurship mirrors SEE’s mission of empowering communities and creating sustainable impact. Her story began long before her involvement with SEE, driven by a deep curiosity to make a difference.

Her journey into social enterprise began with curiosity and a desire to make a difference. Before joining in 2019, she was deeply committed to community service, although she did not yet SEE herself as part of a larger movement. ‘I did not even know there was a term for it,’ she reflects. A friend introduced her to SEE, and she realised her passion for creating change aligned with a broader mission.

After completing her studies and living in Holland for six years, Sofia was at a crossroads. Despite her academic success, she felt uncertain about her purpose. ‘I felt adrift, searching for a sense of purpose,’ she shares. This prompted her to explore deeper questions about happiness, self-care, and her contribution to the world. Through this reflection, she recognised that many young people shared the same thirst for growth and understanding.

In 2015, these realisations culminated in the birth of Sofia Media. What began as a small radio show to share personal growth insights evolved into a powerful media platform. Her lack of experience in journalism did not deter her. Initially in English, the show transitioned to Amharic to connect with a broader local audience, eventually amassing over 1.2 million views on YouTube and becoming a free knowledge library.

The journey was not easy. Sofia initially struggled to secure sponsorships and had to finance the show herself for years. ‘In the beginning, there was not a clear market for content like ours,’ she recalls. Despite these challenges, her passion for creating a sustainable impact pushed her forward. This led her to transform Sofia Media from a passion project into a business. She later expanded her efforts through Sofia Consultancy, offering coaching and training programmes.

Motherhood added another layer of complexity to her journey. During the pandemic, Sofia took a year off to prioritise her newborn son while managing her growing business. ‘I realised I could not get this time back with him,’ she states. Today, she mentors other creators to share the workload, creating opportunities for diverse voices to flourish.

SEE has played a pivotal role in her story, providing Sofia with resources, connections, and a sense of belonging to a community of changemakers. ‘The network and values they stand for resonated with me,’ she says. As part of this vision, Sofia hopes to establish a Women’s Incubation Centre where women can receive the training and support they need to balance entrepreneurship and family life.

Looking ahead, she dreams of creating more shows, training new creators, and establishing a business school for youth entrepreneurs. She also hopes to expand her platform’s focus on empowering women, inspired by her journey as a mother and entrepreneur. ‘Women are unsung heroes, and I want to highlight that,’ she asserts.

Her advice to aspiring entrepreneurs is to start by understanding themselves. ‘Before starting a business, know what inspires and fuels your passion. There will be ups and downs, but if you love what you do, you will not give up,’ she emphasises.

As SEE has nurtured and supported individuals like Sofia, it has also facilitated the growth of enterprises that extend their influence beyond local communities. Tadele Solomon, the founder of Eykis Entertainment, is another example of a social entrepreneur whose work aligns closely with SEE’s vision. His journey underscores how social enterprises can evolve from modest beginnings into impactful ventures that transcend borders.

Creative Enterprise

In 2023, he set out to redefine Ethiopia’s entrepreneurial landscape by founding Eykis Entertainment. Guided by ambition, vision, and a dedicated team, he established a platform to empower Ethiopian businesses to thrive. The name ‘Eykis,’ which translates to ‘the best wish for all,’ reflects the heart of Tadele’s mission: fostering community and cultural pride while supporting local entrepreneurs in building a sustainable future.

‘I started with nothing,’ he shares. His voice carries the weight of experience and the determination that fuelled his work. ‘No money, connections, or office space—just a belief that Ethiopian products deserved a global platform.’ Despite starting with minimal resources, Tadele’s vision for Eykis Entertainment began to take shape, eventually evolving into a multifaceted enterprise.

Central to Eykis Entertainment’s operations is Mignot Bazaar, a monthly festival celebrating Ethiopian craftsmanship, creativity, and community. More than just a market, it features children’s play areas, a pet corner, and live performances from local artists. ‘The bazaar is not just an event,’ he explains. ‘It is a space where people gather to celebrate creativity and forge connections. It represents our mission to globalise the local market and nurture an entrepreneurial culture.’

Eykis Entertainment’s vision transcends the monthly bazaar. Through initiatives like Let’s Know Africa, Eykis raises awareness about African heritage by fostering appreciation for its culture through education and engagement. Similarly, Picture Perfect highlights the region’s artistic talents through immersive festivals that blend live painting, music, and photography.

Additionally, the Jam Nation Music Fest celebrates Ethiopia’s diverse musical heritage, uniting performers and audiences across generations and genres. Each project encapsulates Tadele’s belief that culture and entrepreneurship are vital catalysts for social transformation—key drivers for social enterprises in Ethiopia. The road to building Eykis Entertainment was fraught with challenges. Like many startups, the company faced financial constraints and struggled to find a permanent events venue.

For months, the team relied on temporary locations, managing the logistical hurdles of moving from one place to another. ‘Securing a stable venue was one of the hardest parts,’ he recalls. The turning point came when they partnered with Kings Hotel, a prominent four-star establishment in Addis Ababa. This collaboration provided a reliable venue and boosted their credibility within the community.

Collaboration and partnerships were crucial to their growth. Tadele was introduced to SEE by its president, Dr. Kibret Abebe, who invited him to a SEE-hosted event. At the event, he connected with Eden Demissie, whose insights helped him realise the broader impact of his work.

‘At first, I did not think of Eykis as a social enterprise,’ he admits. ‘Eden explained how our work was making a tangible impact on society—how we were shaping the lives of artisans, entrepreneurs, and communities in ways I had not fully understood. That conversation was a revelation.’

Soon after, he joined SEE, aligning Eykis’s mission with social and environmental goals. Through SEE, he established connections with embassies, international organisations, and fellow social enterprises. These collaborations transformed Mignot Bazaar into a platform hosting over two hundred exhibitors across six editions.

Cross-Border Dreams

The event now offers training and certification for local businesses, equipping them with tools for sustainable growth. ‘We do not just want to showcase products,’ he explains, ‘We want businesses to scale. From marketing training to financial guidance, we aim to empower entrepreneurs.’

Today, Mignot Bazaar attracts an international audience, with visitors from the Netherlands, Switzerland, the United States, and beyond. Tadele’s vision now extends across Africa. In 2025, Eykis will open its first office in Gambia, with plans to expand to Senegal, Mali, and Nigeria. ‘Our goal is to connect African markets,’ he says. ‘We want to help Ethiopian brands access new opportunities while bringing the best of Africa to Ethiopia. It is about fostering a network of shared knowledge, resources, and cultural exchange.’

Eykis Entertainment’s success is deeply rooted in Tadele’s commitment to service and integrity. ‘For me, service always comes first. We are here to support the community, to help others grow, and to ensure that our success benefits everyone involved. When your intentions are pure, success follows naturally.’

This philosophy extends to every aspect of Eykis’s operations. Tadele and his team have cultivated a workplace environment built on mutual respect and shared commitment. ‘We believe in collaboration,’ he says. ‘The more people you partner with, the more opportunities you create. That is how you build something lasting.’

For aspiring entrepreneurs, he offers heartfelt advice: ‘Start with good intentions. If you have a clear vision and stay true to it, no challenge will be insurmountable. Challenges are part of the journey, but they are also opportunities to grow.’

His journey—from starting with no capital to establishing a thriving enterprise—proves the transformative power of resilience, vision, and purpose. Eykis Entertainment’s evolution is a testament to the belief that social enterprises in Ethiopia, when grounded in integrity and service, can inspire change and create lasting impact. As the company grows, Tadele’s dream of a connected, empowered Africa stands as a beacon of possibility for the next generation of changemakers.

The collective journeys of SEE, Sofia, and Tadele illustrate the power of social enterprises in Ethiopia, where innovation, sustainability, and cultural transformation are interwoven. SEE’s commitment to nurturing enterprises that prioritise both profit and social impact has created ripple effects that extend far beyond its members’ successes.

SEE’s efforts in supporting entrepreneurs like Sofia and Tadele showcase how targeted interventions, when paired with strong local values, can unlock transformative potential for individuals and entire communities and sectors. In their diverse approaches, each has contributed to shaping a new narrative where social impact is at the forefront of Ethiopia’s entrepreneurial landscape.

As SEE expands its reach, Sofia, Tadele, and others’ stories will undoubtedly inspire future entrepreneurs. With the support of organisations like SEE, the potential for social enterprises in Ethiopia to scale and create lasting cultural impact is limitless.

Edited by “Pius Okore”