Beyond Profit: How Social Entrepreneurship Is Developing in Russia
The state of social entrepreneurship in Russia: registry growth to 12,000 companies, government support exceeding 2 billion rubles, key business sectors, and examples of successful projects. An overview of support measures and the sector's prospects.
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Social entrepreneurship in Russia has been actively developing since the mid-2000s and was officially established in 2019. It is a business model that combines profit generation with solving social problems—from employing vulnerable groups to producing goods for people with disabilities. The sector is growing with support from the government and private foundations: by the end of 2024, there are more than 12 thousand social enterprises in the registry.
Social Entrepreneurship is a relatively new form of doing business in Russia (formally established in 2019), though it has existed in practice since the mid-2000s. Today, this new form—socially oriented business—is being discussed with increasing frequency, which is especially important during a challenging period for the country's economy. It's crucial to understand that social entrepreneurship is not charity, not altruism, but a modern institution for solving society's problems.
In global practice, starting from the 1970s and 1980s, successful precedents of "market-based assistance" to vulnerable population groups have been established. Social entrepreneurship attempts to address one of the biggest conceptual vulnerabilities of market economies—the question of who will support the most vulnerable groups in society. Traditional charitable foundations don't quite fit the concept, because in a sense they create "grant dependency" among nonprofits. In other words, one of an organization's operational tasks becomes servicing and obtaining grants, rather than focusing solely on direct and effective activities. Therefore, various forms of business that combine profit orientation with a social function, rather than pursuing pure profit maximization, become examples of social entrepreneurship: money is earned to change lives for the better.
As noted by the Director General of the Agency for Strategic Initiatives :
Svetlana Chupsheva
"Responsible business is the new reality, in which a company's mission extends far beyond balance sheet profits."
What Social Business Encompasses and Why It Matters
Social business encompasses various sectors. Among the key areas in Russia today are:
· Employment and services for vulnerable groups – creating jobs for people with disabilities, parents of large families, the elderly, former orphans, and others in need of support. This also includes providing social services – from specialized daycare centers and nursing homes to inclusive education and leisure activities.
· Products and technologies for people with disabilities – manufacturing affordable rehabilitation aids (wheelchairs, prosthetics, hearing aids, canes, walkers), specialized technologies (screen readers, "talking" devices, "smart" gadgets, exoskeletons), and special applications and services for people with disabilities.
· Socially significant products and initiatives – producing eco-friendly goods, supporting cultural projects, organizing children's recreation, educational programs, and other publicly beneficial services.
The importance of such projects has grown particularly in recent years – against the backdrop of the pandemic and amid economic changes, the role of social entrepreneurship has increased significantly. Many problems have become more acute, and business with a social mission has become one of the most relevant tools for addressing them. Experts note that in difficult times, when the state and large businesses may lack resources, the role of grassroots initiatives becomes especially important. Social entrepreneurs have often faced hardships themselves and better see problems "on the ground" and propose unconventional and effective solutions. In this way, social entrepreneurship has become a kind of response to society's demand—to solve pressing issues without waiting for full returns from government programs or the market.
Sector Growth and Development Challenges
In recent years, the state has recognized the importance of this sector. In 2019, the concepts of "social entrepreneurship" and "social enterprise" were officially enshrined in law, which marked the beginning of systematic support at the federal level. A registry of social enterprises was established, which has been growing rapidly: while at the end of 2022 it listed around 7,900 organizations, by the end of 2024 their number had reached more than 12,000. Today, social businesses produce hundreds of types of goods and services, with tens of thousands of people employed in the sector.
The key problem is not even a shortage of money, but a shortage of expertise: there's a need for managers and specialists who know how to assess social impact and build sustainable business models with dual (financial and social) returns. Another problem is informational: the general public often knows little about such projects.
Supporting Initiatives: From Government to Private Foundations
A supportive ecosystem is essential for the growth of social entrepreneurship. The government offers special grants, subsidized loans, and other measures. In 2024, state support expanded: social entrepreneurs could receive grants of up to 500,000 rubles (up to 1 million in Arctic regions), access subsidized lending, and lease property on preferential terms. In total, more than 2 billion rubles were allocated for grant support in 2024. Beyond funding, there are training programs, legal and financial consulting, and market access assistance—all designed to reduce "transaction costs" for social businesses.
Private foundations and major corporations have also become actively involved. One of the pioneers was the Nashe Budushchee (Our Future) Foundation, which since the late 2000s has supported hundreds of social startups with subsidized loans and grants. This foundation initiated the first research studies, competitions, and even developed professional standards for social impact project managers. The Agency for Strategic Initiatives (ASI) has made its own contribution: it supports accelerators, educational projects, and social investment impact assessments. Additionally, the Social Projects Support Fund under the Ministry of Economic Development was created—it trains entrepreneurs, helps them build business processes, and facilitates dialogue with authorities. Regional Centers for Social Innovation (CISs) operate as "one-stop shops" for social businesses. Finally, major corporations have become partners in these initiatives through corporate social responsibility programs. Corporations provide grants, mentorship, and sometimes even platforms for piloting social solutions.
Case study: the "Towards Impact Startups" competition and partner foundations
To see how this support works in practice, let's look at the "Towards Impact Startups" competition —an annual selection of the best social projects organized by the Navstrechu Peremenam (Towards Change) Foundation with business support. The foundation specializes in supporting initiatives in childhood, education, healthcare, and environmental protection. The competition runs for six months: applicants are mentored by experts, and the most promising teams advance to the finals. In 2025, 297 applications were submitted from 63 regions of Russia – a third more than the previous year. Winners were selected in two categories: "Best Social Startup" (a grant of 1 million rubles) and "Best Digital Social Startup" (a grant of 750,000 rubles).
In the final round, an independent investment committee—which included impact investment experts, top managers from partner companies, and even teenagers participating in the foundation's youth track—evaluated projects based on their social impact. Twelve projects were named winners, receiving grants totaling approximately 6.5 million rubles along with comprehensive support. Among the best in the main category were, for example, a project to create equipment for non-functioning hands called "Joystick Dream" (Volgograd Region), an early intervention center for children "We Can Together" (Oryol), and a neuro-speech therapy center "Academy of Speech" (Novgorod Region). In the digital category, grants went to the web service "Going to the Doctor" (Moscow)—which helps children with autism adapt to medical procedures—as well as the online posture correction school ScolioWellness (Tyumen). All competition finalists are invited to join the "Incubator" —a unique support program for social entrepreneurs, where over the course of 1–3 years they receive an individual development plan, mentors, and business experts to help them grow and achieve self-sustainability.
Notably, major corporations are actively supporting such competitions. Mobile operator T2 has been a strategic partner of the "Towards Change" foundation for ten years now: the company established the digital category and even sends employees to serve as judges and mentors. This year, 69 T2 volunteers helped select the most promising ideas from hundreds of applications. The final jury included media representatives—for example, top managers from RBC media group—which speaks to society's and business's interest in the topic.
Business for the benefit of society—a new development vector
Social entrepreneurship in Russia is gradually moving from scattered initiatives to a fully formed sector of the economy. This sector has its own infrastructure, government support, interest from big capital, and most importantly, growing demand from society. Despite existing challenges, entrepreneurs with a social mission are demonstrating that business can work for the benefit of people, addressing problems that remain inadequately covered by the traditional market and existing government support measures. The success of social entrepreneurship is measured not only in rubles, but also in the number of lives saved, people employed, and innovations for special-needs groups.
Today, as the country faces complex challenges, social innovators are becoming drivers of positive change, offering fresh approaches where unconventional solutions are needed. Their work is an investment in a future where sustainable business and the public good go hand in hand. What matters most today is to continue developing the support ecosystem, spreading best practices, and believing in the potential of these committed entrepreneurs. After all, every success story in this field is an argument that good deeds can be both effective and economically viable, changing society for the better.