Participants to the event release the study report on social impact businesses on September 27 (Photo: baochinhphu.vn)

Hanoi (VNA) – Social impact businesses (SIBs) are a key factor in helping to achieve sustainable development goals, and as such they need more support to develop, according to a study report released in Hanoi on September 27.

The report, unveiled by the United Nations Development Programme (UNDP) and the National Economics University (NEU), said that SIBs can balance social and economic targets will create a sustainable business model.

About 59 percent of SIBs in Vietnam choose to balance social and economic targets, with 34 percent focusing more on social targets. Meanwhile, 70 percent of these companies are operating profitably.

Job provision, ensuring a healthy and happy life for all people, and environmental protection are the top three fields that SIBs work to promote, the report said.

It added SIBs in Vietnam are usually small in scale and revenue. Recently, all have been seen to promote gender equality by employing women and three-fourths have accepted people with disabilities.

To promote the development of SIBs, the report recommends the country increase their access to capital and innovative financing methods, boost their connectivity with other private enterprises, and set up a network for the SIB sector.

Rector of the NEU Prof. Tran Tho Dat said the promotion of social entrepreneurship began in 2009 with the establishment of the NEU’s Centre for Social Innovation and Entrepreneurship, exemplifying his university’s resolve and commitment in this field.

He expressed his belief that business model aimed at profiting society and sustainable development is a 21st century trend, with entrepreneurs simultaneously generating economic values for themselves, providing positive impacts on society, and reducing environmental impacts.

Catherine Phuong, UNDP Assistant Country Director in Vietnam, said that grasping this business model is critically important to Vietnam. Developing a more sustainable and inclusive approach to economic growth through innovation and technology, improving labour productivity, and solving social and environmental challenges will help accelerate the realisation of sustainable development goals. –VNA