Barriers to social enterprise growth in developing countries: proposition of a multilevel approach

Abstract

Purpose The purpose of this study is to investigate the hybridity of social enterprises (SEs) by examining the barriers to growth they face at the individual, organizational and institutional levels. Through this investigation, the study aims to contribute to our understanding of hybrid SEs and advance knowledge in the field. Design/methodology/approach This exploratory study uses Gioia’s grounded theory method to analyze qualitative data from 16 interviews conducted with established SEs, dissolved SEs and consulting centers in Vietnam. Findings SEs do have barriers to growth that distinguish them from traditional enterprises. Hybrids face barriers to growth at individual, organizational and institutional levels. This study offers a theoretical framework and provides the process model of SE barriers to growth. The SE growth process demonstrates the complex and dynamic interplay of specific components within two groups: organizational capacities and the SE ecosystem elements. This highlights the roles of various actors and institutions within the ecosystem in enhancing organizational capabilities and removing barriers to SE growth, extending knowledge of the SE, barriers to growth and the ecosystem literature. Research limitations/implications This paper has two main limitations. First, it is an empirical research conducted in a specific context, so the results may not be universally applicable. Second, it has a qualitative approach, which has limitations in comparing differences among different groups, such as hybrids versus traditional enterprises. However, these limitations also open numerous possibilities for further research directions. For instance, future research could apply this theoretical framework to conduct surveys in diverse contexts and use quantitative analysis to further examine the model of hybrid constraints. Originality/value The findings of this paper contribute to a more holistic understanding of barriers to growth facing SEs, which is an under-researched topic in the Vietnamese context. This paper offers a theoretical framework of barriers and the process of growth, providing potential recommendations for practitioners seeking to support SEs in addressing their unique challenges, and suggests avenues for further research in this area.