Abstract
Schumpeter argued that entrepreneurship brings about creative destruction in capitalist economies. South Korea enacted the Social Enterprise Promotion Act in 2007 to promote corporate social enterprise. However, despite government support, social enterprises in Korea are not successful, especially in social and economic performance, which is defined as the social and economic value that social enterprises should pursue. A questionnaire survey was conducted among 100 social entrepreneurs, and the structural equation model was used as the research method. The results of the analysis are as follows. Openness and innovativeness have a positive direct impact on economic as well as social performance. In addition, openness and innovativeness play a mediating role not only in social performance, but also in economic performance. This paper suggests theoretical and policy implications based on the above analysis.
Highlights
In 2007, the Social Enterprises Promotion Act was enacted in Korea to promote social enterprises and generate a positive environment for them
We focus on social entrepreneurs as one of the factors affecting the performance of social enterprises
Economic performance is lower than social performance, which implies that the social entrepreneurs surveyed in this study perceived lower financial performance in their own company
Summary
In 2007, the Social Enterprises Promotion Act was enacted in Korea to promote social enterprises and generate a positive environment for them. We focus on social entrepreneurs as one of the factors affecting the performance of social enterprises In his seminal work, Schumpeter stated that capitalism evolves into a process of creative destruction through ongoing innovation, and that entrepreneurship brings about creative destruction [1]. Social enterprises result from innovation aiming to solve emerging problems in capitalist societies, and social entrepreneurs play a key role in creating innovation, triggering creative destruction, and bringing about a positive change to solve social problems [2,3]. In this sense, social entrepreneurs hold the key to the success or failure of social enterprises. If it is difficult to ensure the performance of social enterprises through financial support alone, other factors will need to be considered for Korea’s social enterprises
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
