—MS Siddiqui—

Increasing inequality is a serious issue in developing countries. Both social and economic disparities are growing-while the rich are becoming wealthier, the middle class is shrinking, and the poor are struggling to survive. Free-market capitalism is thriving almost unchallenged across the globe, bringing unprecedented prosperity to many. Yet, half of the world’s population still lives on two dollars a day or less.

The surge in billionaire wealth is closely tied to the rise in corporate and monopoly power. The richest individuals are not only the biggest beneficiaries of the global economy-they also own a disproportionate share of its assets. The wealthiest 1% globally own a staggering 43% of all financial assets. A new era of monopoly power has supercharged corporate dominance, allowing a small elite to control markets and set terms of exchange and profit without fear of losing business. This is one of the hazards of a free-market economy.

U.S. President Joe Biden, during a meeting of the White House Competition Council on January 24, 2023, stated that increased competition “results in lower prices for families” and “fair wages for workers.” Upon taking office, he signed an Executive Order on Promoting Competition in the American Economy. The order emphasized that “a fair, open, and competitive marketplace has long been a cornerstone of the American economy,” while warning that excessive market concentration threatens basic economic liberties, democratic accountability, and the welfare of workers, farmers, small businesses, startups, and consumers.

In many developing countries, traditional government policies and economic models are proving insufficient to address complex social challenges.

This is where social entrepreneurship comes in. Social entrepreneurs work to fulfill the basic needs of society-such as food, shelter, education, and healthcare-through innovative and mission-driven ventures. These enterprises prioritize service to society over profit. Social entrepreneurs empower communities by building local capabilities, giving voice to marginalized groups, and fostering long-term resilience.

Social entrepreneurship has emerged as a global trend. New models, ideas, and organizational forms are constantly being created to tackle pressing social issues through entrepreneurial approaches. Policymakers around the world have embraced this movement, recognizing its potential to drive inclusive and sustainable development.

The concept of social capital-closely linked to social entrepreneurship-refers to the institutions, networks, values, norms, and relationships among groups in society that influence trust and cooperation in social interactions. In communities where trust and civic engagement are low, it can be difficult to identify and support potential social entrepreneurs. People may not fully understand how their individual actions can contribute to collective well-being.

Social capital plays a crucial role in nurturing social entrepreneurs, especially those emerging from within the communities they aim to serve. It enables cooperation, strengthens networks, and contributes to social cohesion and inclusiveness. Strong social ties-based on family, economic status, religion, or ethnicity-foster trust and shared responsibility.

Successful social entrepreneurs are deeply engaged with their communities. Their enterprises depend on building credibility and maintaining relationships both locally and through wider networks. They work to reinforce social cohesion while addressing the root causes of inequality and marginalization.

In a social business, investors may recover their initial investment, but they are not allowed to take profits beyond that amount. This stands in contrast to commercial ventures, where there is no cap on profits (except in cases involving misuse of dominant market positions, cartels, or anti-competitive mergers and acquisitions).

The purpose of a social business is solely to achieve one or more social objectives through its operations. While the company must cover its costs and can generate profit, that profit must remain within the enterprise. Entrepreneurs do not extract profit for personal gain beyond the return of their original investment.

Social business is not meant to replace traditional profit-making businesses or monopolize the market. Instead, it adds healthy competition and helps balance market dynamics. It complements a country’s competition policy by offering consumers fairer choices and challenging exploitative practices.

Thus, competition policy and socio-economic equality are intrinsically connected. Policymakers must integrate equality considerations when evaluating anti-competitive behaviors. Social businesses and profit-driven enterprises should coexist as responsible players in the market.

Social business offers a vital check against corporate monopolies by promoting open competition and ensuring fair prices for all.

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The writer is CEO of Bangla Chemical