LocationsSocial Entrepreneurship in the Digital Age
February 20, 2024
With digitalization driving the economy, the geographic location of business is becoming less and less relevant. E-commerce has opened the door for entrepreneurs to do business from anywhere, build new supply chains, and reach customers online.
What about rural areas and small towns? Еntrepreneurs living outside urban areas traditionally had limited opportunities to expand business beyond their local confines. Now, modern e-commerce tools, such as social media and online marketplaces show a lot of promise for rural small and medium-sized enterprises to enter new markets.
In 2023, online retail sales around the globe reached an estimated 5.8 trillion U.S. dollars. That is already 20% of all retail sales made. Over the coming years, projections indicate a 39% growth in the online sales volume.
Bridging the digital divide
Yet, most financial resources, digital infrastructure, and educational institutions are still concentrated in big cities. Rural business owners face more challenges in entering the world of e-commerce as compared to their urban counterparts. For example, lack of networking and mentorship opportunities means that many rural entrepreneurs struggle to find success stories within their surroundings and get business advice. Similarly, universities, trainers, and consultants are primarily located in cities. With limited access to learning, rural SMEs are at a disadvantage in their ability to adopt new technologies or find qualified employees.
The right knowledge and digital skills are key to empowering rural entrepreneurs in Belarus, allowing them to harness the benefits of e-commerce and overcome the existing barriers.
In 2023, the UNDP Accelerator Lab in Belarus launched a pilot program to bridge the digital divide for rural business. The focus was on supporting social entrepreneurs in the Bragin and Khoiniki districts – the territories that were severely affected by the Chernobyl disaster. There, the Lab engaged five social enterprises interested in expanding their business using online marketplaces and social media.
Meet the participants
From Challenges to Strategy
Experts studied the range of products offered by social entrepreneurs and selected the optimal channel for their promotion. For example, while confectionery has a short shelf life and is best promoted through social networks, honey products can be stored in a warehouse and can be distributed through the marketplace.
Then, for each business, experts developed short-, medium-, and long-term promotion strategies. The guidelines featured a wide range of solutions: key messages for customers, legal and logistical considerations, as well as social media plans.
The entrepreneurs created business profiles in social networks and marketplaces, applied newly available digital analytics tools to monitor and promote sales, and adjusted their delivery system.
The first online sales were not long in coming.
Reaping the Benefits
Marketplaces and social media have proved to be effective tools for boosting social entrepreneurship in rural areas. All five entrepreneurs were able to increase sales and venture into new markets.
The coffee roasting company received its first international orders and hired another employee with disabilities to manage online promotion.
A single video shared on social media increased the number of Mila Malaya’s page visits 70 times. With consistent content publication, her profile's reach surged by 2.6 times in just one month.
New partnerships was another important result of the initiative. Take Alina Zayats, for instance. She now plans to engage more local residents and fellow entrepreneurs in crafts.
Other entrepreneurs supported within the Initiative are thinking about creating their distinctive brand to champion locally produced goods and services.
A local photographer got involved in creating photo and video content for the participants of the Initiative. Having acquired new skills, he ultimately introduced new photography services for his clients. Now other business owners can cooperate with a local specialist and save costs.
What next?
The next important stage is scaling the results. Experience from working with social entrepreneurs in the Bragin and Khoiniki districts laid the foundation for three roadmaps on using national and international marketplaces and social media. In the future, the roadmaps will help other social entrepreneurs promote their products and social cause online.
