Mainstreaming SMEs through Social Enterprises

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Social enterprises (SEs) are crucial both for the development of small and medium enterprises (SMEs) and labor generation. The goal of SEs is to provide public goods to communities. In the Philippines, SEs are linked to social entrepreneurship as a process of creating spaces and transforming markets toward the goal of poverty reduction and sustainable development. This Policy Note discusses the findings of a study that explored the key policy variables necessary to support SE and SME development. The study also examined the extent to which nongovernmental organizations, as well as international trade arrangements, such as the Asia-Pacific Economic Cooperation, can improve the business environment for SEs and SMEs. Results indicate that the business environment affects the revenues and incomes of these enterprises. To support SEs, it is crucial to link them to global value chains and to provide them with the necessary global public goods that can help address poverty directly.