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Does Liberia have a legal classification for social ventures?
Social Ventures are hybrid businesses serving a social purpose (clean and safe drinking water provision) but with a financially self-sustaining model (profit-making). They’re not traditional non-profits or for-profits and, thus, need to be treated differently within the frames of the local laws as seen in other parts of the world.
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Liberia currently does not have a legal classification or framework for social ventures (social enterprises). While the concept has been around for a few decades, it is still relatively nascent in terms of legal framework not only in developing, but also developed countries. The U.K. is one of a few developed countries with the full legal classification.
For Liberia, there are currently only two legal frameworks for organizations: for-profit and non-profit. Social ventures (social enterprises) in this regard, fall under the non-profit structure even though they may run revenue-generating activities. This could mean loss of revenues for government, but also lack of clarity in operations for social ventures.
I think if we could have that structure clearly defined, it will not only support a nurturing ecosystem for the growth and impact of social ventures, but it will also give government leverage within this rapidly growing economic development framework.