Macro-level enabling conditions for the formation of social business enterprises in the Philippines

Aaron Laylo

doi:10.1108/apjie-12-2017-0044

Abstract

Purpose A conducive and enabling environment is imperative for the formation of sustainable social business enterprises (SBEs). This paper aims to identify the macro-level enabling conditions necessary for SBE formation and to analyze them in the context of the Philippines, an emerging economy that is yet to be transformed into an inclusive one. Design/methodology/approach Major developments on micro-, small- and medium-sized enterprises, specifically on social enterprises, were revisited and analyzed. The author also looked into how they are sustained, supported and nurtured in the Philippines’ overall economic landscape. Extensive data were collected from relevant agencies in public and private sectors, after which they were analyzed parallel to existing academic literature, i.e. theories, models and concepts, on social entrepreneurship and development nexus. Findings It has been found that the four macro-level enabling conditions, namely, governance, socially inclusive economic approach, financial services and entrepreneurial culture, presumed to be vital for SBE formation, contribute to the latter at various levels, but surely complement each other in the process. Research limitations/implications The significance of exploring the context in which social enterprises are formed and flourish lies in the sheer importance of understanding the sustained prevalence of SBEs in many economies – both in developed and developing ones. Originality/value By having a more structured knowledge of the components surrounding SBE formation, the community may be able to also simultaneously explore why and how social entrepreneurs form profit-earning business entities that are primarily driven by social advocacies and goals.

Highlights

This study turns the spotlight on social enterprises, defined as entrepreneurial organizations, following a business model, which focus on the provision of goods or services that primarily aim to solve social problems and, benefit the community
In this article, the author identified four components that contribute to the formation and growth of social enterprises in the Philippines
The points and examples provided in this article advocate that social enterprises are viable instruments that can significantly reform traditional capitalist structures and markets to become more inclusive, with more noble goals, and with greater impact

Summary

Introduction

This study turns the spotlight on social enterprises, defined as entrepreneurial organizations, following a business model, which focus on the provision of goods or services that primarily aim to solve social problems and, benefit the community. At the forefront, this study emphasizes that a conducive and enabling environment is imperative. Published in the Asia Pacific Journal of Innovation and Entrepreneurship. The full terms of this licence may be seen at http:// creativecommons.org/licences/by/4.0/legalcode

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Conclusion