“For the sustainability of social enterprises”
Social enterprises are innovative business models that aim to solve social problems while creating economic value instead of solely pursuing profit. However, many social enterprises fall into a vicious cycle of financial difficulties and deteriorating profits due to a lack of competitiveness. In South Korea, over half of the social enterprises are in the red, with an increasing closure rate after receiving government support for five years. The lack of interface between social enterprises and consumers significantly contributes to these issues, leading to lower sales, profitability, and eventual closure. Sustainable business models and collaboration with market stakeholders are necessary to address these challenges.
Our proposed solution to the challenges faced by social enterprises is Social Folks. This platform connects social enterprises, commercial enterprises’ online shopping malls, consumers, and metaverse games. By forming a mutually beneficial trading relationship, this platform enables social enterprises to sell their products in commercial enterprises’ online shopping malls. And commercial enterprises can realize corporate social responsibility by leveraging social enterprise products to enhance their connection with consumers. Consumers can enjoy the benefits of purchasing social enterprise products and receive credit. The credits then can be used for purchasing other products at the online shopping mall or exchanged at Social Folks to use in metaverse games. Social Folks earns a commission from credit exchanges between consumers, online shopping malls, and metaverse games, which are used to fund the operation of the platform and discover new social enterprise products and services. This cooperative system between commercial and social enterprises can raise consumer awareness. It can also boost the sales of social enterprise products and services and promote their sustainability and growth.