Making sense of each other: Relations between social enterprises and the municipality

Abstract

Social Entrepreneurs address ‘wicked’ societal problems and achieve social impact using innovative practices. This study contributes to the analysis of the role of government in the ecosystem of Dutch social entrepreneurs by looking at the support initiatives that the Amsterdam municipality offers. Our paper reveals how municipal officials and social entrepreneurs position themselves in this ecosystem and how they make sense of their collaboration. We think that these issues are important to dwell on to be able see the limits of collaborative governance approaches in the Dutch Social Entrepreneurship eco-system. The results of qualitative interviews conducted with municipality officials, social entrepreneurs and members of network organizations show that the ties between the municipality of Amsterdam and social entrepreneurs are not strong enough to overcome the institutional barriers and that the relationship between them is disrupted by the different logics used. Social entrepreneurs operate from both a social as well as a commercial logic. Social entrepreneurs see themselves as running noble social enterprises that put impact first, but the municipality values a commercial logic when granting subsidies. This means that the social enterprises do not always fit within the frameworks offered by the municipality because their commercial logic is seen as less legitimate when it comes to support. The results of this study confirm that in the governance of wicked problems, there is an ongoing actor positioning process where, in this case, social enterprises and municipalities, hold on to their actor-based understanding of the nature of issues and collaboration.