How do barriers to the activities of social enterprises affect their financial situation? Evidence based on data from Poland and resource mobilization theory

Abstract

PurposeThe purpose of the research is to identify the degree of intensity of barriers to the activities of social enterprises (SEs) and to examine the significance of such barriers regarding the financial situation of SE’s in emerging economies.Design/methodology/approachThe data relates to 200 SEs selected from a national survey of 1,300 Polish non-governmental organizations (NGOs). An analysis of barriers to SEs according to the frequency of their occurrence was conducted. An indicator of the intensity of barriers to the activities of social enterprises and an indicator on these enterprises’ overall financial condition were determined. Spearman rank correlation analysis was used to assess the relationship between the indices.FindingsThe results of the study indicate that in addition to excessive bureaucracy in public administration and the complex formalities related to the use of private and public funds, SEs have difficulties in maintaining good staff and volunteers, whereas people in key positions reference burnout, not only among their own employees but also in themselves. These have a significant impact on the financial situation of SEs.Originality/valueThis study contributes to the field of social entrepreneurship in two ways. One is at the macro level in that it provides suggestions for public authorities in emerging economies interested in maintaining SEs in good financial condition so that they can effectively fulfil their social functions. The second contribution – the micro approach – is recognizing the extent of the impact of barriers on the financial condition of SEs and also determining the intensity of such barriers with regard to the mobilization of resources by managers, especially in the field of human resources.