Social Enterprises Lack the Working Capital for a US$13 Trillion Procurement Market
Many social enterprises face a public procurement market worth an estimated US$13 trillion per year with too little working capital to enter it. From January 2027, the United Kingdom will give employment and skills outcomes at least 20 percent weighting on central government contracts over £5 million, yet half of African social enterprises in Schwab Foundation for Social Entrepreneurship research report low solvency.
A public contract can become the trap. Drinkwell, a 2026 Schwab Foundation awardee, pursued four water tenders in West Bengal scored on price alone, with the winner obliged to keep building if the buyer ran short of funds and 15 percent of every bill withheld as security. Only a repayable grant from Imagine H2O's Water Innovation Pilot Fund, which let funders share payment risk, made the work possible.
Source: Alliance Magazine · November 6, 2026