For-profit Social Enterprises Research Articles

Does Purpose Matter? Examining Consumers Purchase Intention of for-Profit Social Enterprises (FPSE)

The consumption patterns of modern society have a significant negative impact on socio-environmental issues. Seeking to solve part of the problems hybrid organisations have emerged, among them the For-Profit Social Enterprises (FPSE). The research aims to analyse the factors that influence consumers’ purchase intentions regarding FPSE products and services. Data were collected through structured online questionnaires, resulting in 407 valid responses and analysed using Structural Equation Modelling. The results indicate a positive relationship between attitude and perceived behavioural control with the purchase intention of FPSE products and services. However, consumers have a lack of understanding and information in associating with FPSE brands.

Amounee, a case for micro entrepreneurship: giving voice to the artisans of the Indian handicrafts industry

Social implications The case projects how a women-led social enterprise provides livelihoods through a digitally operated unique micro-entrepreneurship model for the rural artisans of the Indian handicrafts industry, thus bringing about social change through economic empowerment of the community. Learning outcomes To understand how women entrepreneurship is contributing towards livelihood generation and rural artisan empowerment in India. To understand the make-up of a for-profit social enterprise in the Indian Handicrafts Industry, its challenges and solutions through innovative business. To present the mindset and journey of a woman social entrepreneur. To present and understand the growth and scaling up of such unique social ventures. To understand a unique form of the micro entrepreneurship model being built through digital platforms. Case overview/synopsis The objective of writing this case is to bring out a case of women entrepreneurship in the craft-based industry in India. This case seeks to emphasise on the following learning themes in the area of entrepreneurship: Women entrepreneurship: trials and tribulations. Micro entrepreneurship/rural artisan empowerment. Livelihood generation and upliftment of the rural artisans and revival of dying art and crafts in the Indian craft-based industry. The novel ecommerce and data analytics experience being skilfully incorporated by small enterprises to their vantage and making both the seller’s as well as the buyer’s experience unique. The case highlights how the unique business models of social entrepreneurship through the use of technology bring the digital experience to rural India. Social entrepreneurship. The case narrates the story of a budding social entrepreneur Megha Das who is a textile designer by profession and showcases her journey towards the creation of unique digital platforms which transf Complexity academic level The case has been targeted to be taught in Masters level course in business management/administration, entrepreneurship, social entrepreneurship, development studies, gender studies, design, etc. Its watered-down version can also be taught in under graduate programs in commerce, business management, business administration, fashion and textile designing, entrepreneurship, development studies, gender studies, etc. Supplementary materials Teaching notes are available for educators only. Subject code CCS 3: Entrepreneurship.

Systematic Literature Review of Social Enterprise Financing and Investment

Non-profit and for-profit social enterprises struggle to source funding. Current limited understanding on the funding sources of these enterprises originates from disconnected body of studies based on different subject areas. This paper systematically reviews 50 articles published between 2009 to 2022 to bridge the existing knowledge in the subject area. This is achieved by mapping the sources of funding for social enterprises at organizational, personal, and institutional levels; analyzing the results to design an extensive model; and suggesting future areas for study in the field. It is found that studies at personal levels majorly focus on the perspective of funders of the features of a social entrepreneur. Social enterprises’ dual logic is usually addressed by research at the business level; including their effect on the effective funding of these enterprises. Institutional level research is clustered into legal, social, economic, and cultural factors. The paper suggests the need for studies, which use an extensive view by looking at all the three levels of analysis together and applying both organizational and economic theories.

Benevolent Leader as a Social Entrepreneur

This research, done at the intersection of benevolent leadership style and for-profit social entrepreneurship, examines the research question: How does a benevolent leader, concerned for ecological sustainability, drive a for-profit social enterprise? Adopting a case approach, the phenomenon has been probed within the bounded context of SOS Organics—a for-profit social enterprise—located in a remote village of Uttarakhand state of India. The data was collected from multiple sources and thematic analysis was used to identify themes. The study produced three key findings. First, the study could extract two themes of benevolent leadership—striving for the common good and concern for others. Second, it could extend the understanding of social entrepreneurship by identifying two themes—social value creation and developing innovative business models. Third, it proposed a process framework by capturing the journey of SOS promoters towards the benevolent social entrepreneur over two decades. This study contributes to the literature on the intersection of benevolent leadership and social entrepreneurship by creating a deeper meaning of the constructs. Finally, the study offers suggestions for managers and practitioners to adopt a benevolent leadership style in the social entrepreneurship context to achieve their social mission.

Global Enterprises: contemporarisation of khadi products in India

Theoretical basis This paper aims to explain the theory of stakeholder, value chain analysis and triple bottom line sustainability approach. Research methodology The present case was developed from both primary and secondary data sources. The primary sources included visits to Global Enterprises and collected data through a structured interview. The secondary sources included enterprise annual reports and websites. Case overview/synopsis This case presents the innovative approach adopted by a for-profit social enterprise, utilizing locally available resources, changed products and an improved business model to deliver the desired social impact. It highlights the challenges social entrepreneurs face and how the people at the grass-root level are uplifted through the success of a social entrepreneurial venture. The case study is based on an interview conducted with the founder and managing director of Global Enterprises and other stakeholders (farmers, women artisans and employees). An interview schedule was used for conducting the interviews. The researchers tried to understand the business model deployed, stakeholders involved, challenges faced, competencies needed and strategic decisions made by the social entrepreneur that helped the enterprise become sustainable. The social problems identified by the entrepreneur include unavailability of quality raw material at a reasonable price on time; financial scarcity and massive dependence on non-institutional financial sources; lack of product development, market research and production; and the high price of handmade products compared to factory-made products. The case explains how the entrepreneur addressed the problems of cotton farmers, women artisans and local youths through his enterprise. The case also explains how he could make a social venture sustainable in the long run. Complexity academic level This case targets graduate-level students and is designed to be taught in Entrepreneurship, Social entrepreneurship, Rural entrepreneurship, Business administration and Entrepreneurship development. It can also be used for other programmes, where problem identification, opportunity recognition, stakeholder analysis and porter's value chain analysis are taught.

Decision-Making in For-Profit Faith-Based Social Entrepreneurship

This paper sheds light on the decision-making process of for-profit social enterprises that hold a mission strongly grounded in Christian Ethics. Resource allocation challenges are discussed as they present tradeoffs to the administration that prevent an approach that does not compromise firm goals. A qualitative research methodology based on a case study was used to illustrate how a social entrepreneur established in a Christian-averse country was able to achieve social legitimacy and economic sustainability without compromising Christian moral values. We suggest a conceptual model consisting of four pillars that use economic, environmental, social, and faith outcomes to understand the decision-making process of the firm. We also analyze two dilemmas faced by the management when tradeoffs force compromising decisions.

Value Drivers Analysis of For-Profit Social Enterprise (Case: People of Happiness)

People of Happiness (POH) is a social enterprise lifestyle apparel brand. The brand is socially conscious but also provides gender-neutral and unique products. It focuses on spreading happiness through its apparel where they work with small local communities and businesses to manufacture its products. The experience of happiness is the core value of POH. However, happiness and mental wellness are hard to measure, and defined differently for each person. There is a need to ensure that POH assumptions and hypotheses are validated to nail the business model. The research aims to uncover the hidden needs of customers related to their happiness and understand the value drivers. During the preliminary exploratory study and descriptive research through literature studies and interviews, it is known that people chase a bigger need of being self-actualized with the top characteristics is having a good sense of humor, enjoying meaningful friendship, getting creative, and being grateful. To prepare the solutions, The 5 Whys Method and AHP were conducted. The findings indicate that the countermeasures for customers' jobs, namely, features are separated into 3, which are to be a brand that gives a fun-loving community, shares content to learn something new, and spreads good news through charities. This study also tested the three features in the form of insight test analytics in which the result would validate the value drivers.
 By researching the pain and solution of customers, it becomes validated that the best feature that gets the attention of customers and the willingness to pay comes from the feature of POH if it becomes a medium to learn something new which can be delivered through both online and offline activities. The outcome of this study is also a social business model canvas that continuously innovates its model to adapt to the ever-changing environment around it, as the world is shifting to a healthier lifestyle and more focus on mental health, the social innovation of POH differentiates the company from other related brands.

一栁智子（著）『ケニアにおける営利型社会的企業ハニー・ケア・アフリカ社の営利企業化とその主要因』

一栁智子（著）『ケニアにおける営利型社会的企業ハニー・ケア・アフリカ社の営利企業化とその主要因』

Is CSR a motivator for socially responsible customers of for-profit social enterprises?

The rise and development of corporate social responsibility (CSR) as a very significant and influential dogma in current business practice supports the popularly held view that firms cumulatively enjoy substantial power and control over a vast majority of society’s resources. Such enormous power can be at times detrimental to society in general and as such it is just right that these corporate behemoths police themselves unilaterally and be of good service to the community. The objective of this research is to evaluate the bivalent effects as motivator and hygiene factor of CSR on socially responsible customers towards a for-profit social enterprise. This research also evaluates the significance of CSR towards customer relationship and positive word of mouth among Human Nature customers. Respondents in this study were the customers of an independent distributor of Human Nature products in the Philippines. Findings indicated that CSR wields a significant influence towards customer in enhancing customer relationship and CSR helps in encouraging customers to willingly support and endorse Human Nature products. CSR also exhibits bivalently both characteristics of motivator and hygiene factor in moderating the impact of perceived CSR towards relationship quality and positive word of mouth from customers. Results of this study can be used as a reinforcement to the idea that CSR can and could elicit positive attitude and behavior from customers. Furthermore, results of this study can also be used by scholars in further probing the corporate impact of various individual CSR initiatives instead of CSR itself in its totality.

Organizational Attributes and Their Effect on Donor Intentions: Examining How the Descriptors Used in Marketing Communications Can Affect Donor Support

ABSTRACT Utilizing a choice-based conjoint survey of donors from four nonprofit organizations, this study investigated individual donation intentions and their organizational and venture attribute preferences. A sample of 191 participants indicated that a nonprofit organization’s administrative efficiency was the most important attribute when choosing between donation options. Attribute choices of 8% and 10% of the budget spent on administrative expenses seem to be strongly preferred over the attributes of 12% and 16%. The attributes concerning the venture itself (the profitability of the venture, the venture’s location, the entrepreneurial competence of those starting the venture, and terms used to describe the venture) were all significantly more important to donors than the age of the nonprofit organization launching the venture. Interestingly, respondents appear to favor a venture described as “social enterprise” over a venture described as a for-profit social enterprise. This study may help determine which organizational and enterprise attributes are most effective in eliciting donor support. These findings extend previous research studies.

Innovation at the Bottom of the Pyramid: Empowering Rickshaw Pullers

This case presents the innovative approach adopted by a for-profit social enterprise through utilization of technology, changed processes and improved business models to deliver the desired social impact. It also highlights the various challenges that the social entrepreneur faced and how the bottom of the pyramid was uplifted through success of this new social entrepreneurial venture. The case study is based on an interview conducted with the founder and managing director of SMV Wheels Pvt. Ltd. An exploratory schedule was prepared, and the researchers tried to develop an understanding of the business model deployed, challenges faced, competencies needed and strategic decisions made by the social entrepreneur that helped it in becoming sustainable. The challenges highlighted in the case study were lack of trust of beneficiaries, stakeholder scepticism, funding the business, testing the business model, need to retain self-motivation, handling family opposition and building a team. Moreover, with the use of technology, the traditional rickshaw was converted into a lightweight, technologically superior and cost-effective model; the health hazards were minimized; and the product became accessible with small weekly payments. Dilemma How to alleviate the daily struggle of the rickshaw pullers who perform labour-intensive work with meagre income? Their children lacked access to schools, no nutritious food was available, many rickshaw pullers consumed alcohol on a regular basis, domestic violence was prevalent, they were unable to afford good healthcare and suffered from diseases such as tuberculosis. What could be done for them? Theory: New product launch. Product and process innovations. Type of the Case: Problem solving and applied. Protagonist: Present. Options Redesign the rickshaw as a lightweight vehicle requiring less effort to pull. Strengthen supply side and easy access to bank financing, revenue sharing from advertisements. Discussions and Case Questions How to further optimize economic and social value creation? What steps can reduce the cost of a rickshaw while making it robust but lightweight? Perhaps a community of networks of rickshaw pullers in different towns can give critical mass to better negotiate with the vendors. What can be done for the welfare of the dependents of the rickshaw pullers?

Attitude Toward Social Enterprises: A Comparison between For-Profit and Social Enterprise Employees

Social enterprises, organizations that pursue social purposes while generating profits, have garnered attention recently as potential key players for a sustainable economy. However, research on the perception of social enterprises by lay people has been ignored even though positive reception of social enterprises is an important condition for their sustainability. In the present study, we compared for-profit enterprise employees (n = 200) and social enterprise employees (n = 162) and examined their differences in attitude toward the profit-making aspects of social enterprises as well as the employees working for social enterprises. The results showed that for-profit enterprises overestimated that social enterprise employees were extrinsically motivated and underestimated their prosocial intentions. In addition, for-profit enterprise employees were less favorable toward the profit-making aspects of social enterprises, including payment of high salaries for the social enterprise employees and using donations to run social enterprises. Interestingly, the difference between for-profit and social enterprise employees in their attitude toward the profit-making aspects of social enterprises was explained by lay theories of altruism called “pure altruism.” The present research makes important contributions by identifying the psychological mechanisms that underlie individuals’ perceptions and attitude toward social enterprises.

Do Nonprofit and For-Profit Social Enterprises Differ in Financing?

This study is an empirical investigation of the survey data from 109 social enterprises, nonprofit and for-profit, in Illinois, the USA. We compare sources of startup funding and revenues of social enterprises by the organizational form. Findings reveal that nonprofit social enterprises do not significantly differ from their for-profit counterparts in sources of startup funding. But the types of revenues differ by the organizational form of social enterprises. Nonprofit social enterprises are more likely to rely on foundation grants and government grants as their primary sources of revenue, while for-profit social enterprises are more likely to rely on revenues through sales.

Uncovering hidden urban bounty: A case study of Hidden Harvest

Urban food systems primarily rely on foods grown in rural spaces, and often face challenges in creating spaces to grow fresh, healthful and affordable food in cities. Urban food harvest organizations aim to overcome these challenges by locating and harvesting food that already exists in cities on the numerous fruit- and nut-bearing trees located on public and private lands. Hidden Harvest is a leading initiative for urban fruit and nut harvesting in Canada, and unique in its for-profit social enterprise model. The organization aims to legitimize and support the practice of harvesting fruits and nuts in urban areas, and provides a means to increase access to—and availability of—fresh, healthful foods hyper-locally in Ottawa, as people harvest from their own (or nearby) neighborhoods. This field report examines the challenges and opportunities faced by Hidden Harvest in attempting to link multiple social, environmental and economic goals relating to food sovereignty, social justice and ecological sustainability. In particular, the organization seeks to establish a self-sustaining business model through innovative solutions and the development of networks with local food processes, food organizations and businesses, which enables Hidden Harvest to grow and develop distinct ties and relationships in Ottawa. This case study reveals how organizations such as Hidden Harvest use food to enhance and tie together local economies, knowledge, food security and community well-being.

Hidden Harvest's Transformative Potential: An Example of 'Community Economy'

Drawing on an in-depth case study of Hidden Harvest Ottawa—a for-profit social enterprise that aims to legitimize and support the practice of harvesting fruits and nuts in urban areas—this article explores the transformative potential (both realized and unrealized) of place-based urban foraging. It briefly delineates the organizational model employed, including its innovative practices and strategic 5-year vision. It then explores Hidden Harvest’s transformative potential realized: notably, it reconceptualizes surplus (and thus profit); makes visible a nonmonetary social return on investment (SROI, defined as substantive contributions to building community, adaptive capacity, prosperity, social capital, and community-based food security); normalizes access to public space for food provi­sioning; and, finally, frames Hidden Harvest as an illustrative example of Gibson-Graham’s (2006) notions of community/alternative/ethical econ­omy, an initiative that destabilizes dominant eco­nomic assumptions while fostering meaningful interconnection. Throughout this article, we argue that only through collective resignification of our economy can initiatives such as Hidden Harvest adequately receive the support warranted by its impact and outcomes to fully realize its potential and achieve long-term viability. See the press release for this article.

Retaining the social goal: role of path creation in for-profit social enterprises

Purpose The purpose of this paper is to understand how social enterprises (SEs) sustain social focus as they shift their legal format from nonprofit to for-profit. The investigation is driven by the understanding that historical persistence of organizational action can influence the sustenance of social focus. Design/methodology/approach The paper uses a case study approach and traces the commercialization process of two microfinance organization from India. The data come from interviews and archival documents spanning across the biography of the selected organizations. The constitutive elements of the commercialization process are identified by using the lens of path creation. Findings Evidence suggests that the framing of purpose for microfinance as empowerment of women formed the triggering event to path creation. The organizations retained the focus on social goal by adopting a community centered delivery model of self-help groups. The organizational practices adopted after commercialization helped these organization to address the issues of drift actively. Research limitations/implications The paper suggests that framing of organizational purpose can play a crucial role in sustaining hybrid character in SEs. It reinforces earlier findings that stakeholders can exert significant influence in balancing social and commercial goal. The aspiration to be identified as a pro-community organization is another critical driver in sustaining social focus. Finally, for SEs to sustain their social focus, proactive engagement with the community should become an integral part of organizational practices. Originality/value The paper explores the constitutive elements of path creation and demonstrates the sustenance of social focus through three stages of organizational path development. It also offers insights into the literature on historical imprinting by exploring the internal process through which imprinting is sustained and amplified and by presenting sources and outcome of imprinting.

A longitudinal comparison of capital structure between young for-profit social and commercial enterprises

We develop a new perspective on capital structure differences between for-profit social and commercial enterprises by combining imprinting and social entrepreneurship theory. Using a longitudinal matched sample, we find that for-profit social enterprises have 40% to 13% lower leverage and up to four times greater leverage stability over time than commercial enterprises. Our results suggest that these differences in capital structure derive from the process of prosocial organizing, which goes beyond the primary focus on financial preferences. Thus, for-profit social enterprises—and similar hybrid organizations, such as B corporations—may require theories adjusted to their context.

Perceptions of Nonprofits and For-Profit Social Enterprises: Current Trends and Future Implications

Nonprofits and for-profits use the term entrepreneurial to describe the mind-sets, be-haviors, and strategies they employ to achieve organizational goals. Relatively little analysis has been conducted about public perception of the differences between non-profit organizations (NPOs) and for-profit social enterprises (FPSEs) and how these perceptions influence the behavior of potential investors, donors, employees, and vol-unteers. This study explores how Gen Z respondents (those born in the early 1990s) perceive NPOs and FPSEs along multiple dimensions, including values, motivations, and organizational culture. Overall, Gen Z young people perceive NPOs and FPSEs as having distinct orientations to expressive roles (values and social welfare goals) and affiliative roles (inclusive community engagement), but perceive NPOs and FPSEs as more likely to have overlapping approaches to instrumental roles (getting the work done). Our results identify some perceptions that align with a priori assumptions, as well as views that indicate new ideas about the NPO and FPSE sectors. These results have implications for leaders of all types of organizations, but especially for leaders of FPSEs who may seek to assert their expressive and affiliative similarities with their nonprofit peers.Subscribe to JNEL

Intermediation in the Supply of Agricultural Products in Developing Economies

Problem Definition: Farmers face several challenges in agricultural supply chains in emerging economies that contribute to extreme levels of poverty. One common challenge is that farmers only have access to one channel, often an auction, for which to sell their crops. Recently, e-intermediaries have emerged as alternate, technology-driven posted-price channels. We aim to develop insights into the structural drivers of farmer and supply chain profitability in emerging markets and understand the impact of e-intermediaries. Academic/Practical Relevance: In practice, much attention has been given to e-intermediaries and they have often been touted as for-profit social enterprises that improve farmers' welfare. Yet, studies in the operations literature that systematically analyze the impact of e-intermediaries are lacking. Our work fills this gap and answers practical questions regarding the responsible operations of e-intermediaries. Methodology: We develop an analytical model of a supply chain that allows us to study several key features of intermediated supply chains. We complement the model's insights with observations from a numerical study. Results: In the absence of an e-intermediary, auctions cause farmers to either overproduce or underproduce compared to their ideal production levels in a vertically integrated chain. The presence of an e-intermediary with limited market share improves farmers' profits; however, if the e-intermediary grows too large, it negatively impacts both farmers' and supply chain profits. Finally, as the number of farmers increases, farmers' profits approach zero, irrespective of the e-intermediary's presence. Managerial Implications: Our results provide a balanced perspective on the value of e-intermediation, compared to the generally positive views advanced by case studies. For-profit e-intermediaries that also aim to improve farmers' livelihoods cannot blindly operate as pure profit-maximizers, assuming that market forces alone will ensure that farmers benefit. Even when e-intermediation benefits farmers, it is insufficient to mitigate the negative effects of supply fragmentation, suggesting that for farmers, market power is more important than market access.

Emerging role of for-profit social enterprises at the base of the pyramid: the case of Selco

PurposeThe purpose of this paper is to analyze and understand the business logic of the for-profit social enterprises targeting the basic needs of the base of the pyramid (BoP) segment. A case study of an organization offering clean energy solutions to the BoP segment has been used to illustrate the socio-economic business model of the for-profit social enterprises, which can serve the underserved needs of the BoP segment using an inclusive approach.Design/methodology/approachThis paper analyses Selco, a social enterprise offering energy solutions to the low-income population in rural India. The qualitative case-based research involves the secondary data inputs from the online sources and primary data inputs from the field interviews with the different stakeholders at Selco.FindingsThe research findings recommend the following strategic choices for the social enterprises – focus on segmentation; field-based experimentation, innovation and prototyping; local skill-building and engagement; hybrid organizational setup; systemic behavior change orientation; customized value offerings; last-mile delivery and support; and collaboration with non-traditional stakeholders.Practical implicationsThe lessons learnt through the analysis of Selco provide tools and strategies to enable the social enterprises to better understand their business model and make informed decisions resulting in the effective social interventions while remaining sustainable. The paper offers an actionable framework for creating an inclusive formal market ecosystem that is sustainable, scalable and socially relevant.Originality/valueThis study is an original contribution to the field of social entrepreneurship. It undertakes a field study of the social enterprise delivering inclusive energy solutions to the BoP segment in India. The study of Selco brings out the learnings regarding the key strategic actions, which can lead to sustainable business models for targeting the BoP segment in developing countries like India