Social Enterprise Sector Research Articles

The distinctive challenges and opportunities for creating leadership within social enterprises

PurposeThe purpose of this study is to present a systematic assessment of the distinctive challenges and opportunities associated with creating leadership within the realm of social enterprise. A modified and expanded form of Grint’s leadership lenses heuristic framework (i.e. person, position, process, performance, purpose and place) is used to examine and highlight what is particular about creating leadership in social enterprises by virtue of their distinctive missions, strategic contexts, legal forms and organisational structures and cultures. Based on this initial exploration, five research priorities are identified to better understand and then develop leadership practice in the social enterprise realm.Design/methodology/approachAn enhanced heuristic framework for systematically examining leadership within the social enterprise research literature has been applied, drawing on the leadership practice literature. The application is illustrated through six instrumental case studies.FindingsWhile there are a number of similarities between leading in the social enterprise realm and leading within the private, public and not-for-profit sectors, the levels of complexity, ambiguity and the lack of an established theoretical and practical knowledge base makes creating leadership in the social enterprise sector that much more challenging. On the positive side of the ledger, the fact that the purpose is at the core of social enterprise means that it is relatively easier to use the purpose to create a basis for common meaningful action, compared to leadership within the private and public sectors. Related to this, given the strongly local or “glocal” nature of social enterprise, a ready opportunity exists for leaders to draw upon a place as a strategic resource in mobilising followers and other stakeholders. The novel, uncertain and pioneering nature of a social enterprise is also arguably more tolerant and accommodating of a leadership mindset that focuses on posing questions regarding “wicked” problems compared to public, private for-profit and, indeed, traditional not-for-profit sector organisations.Originality/valueAs far as we can ascertain, this is the first systematic attempt to examine the distinctive challenges and opportunities associated with creating leadership within the social enterprise realm. The application of the heuristic framework leads to the identification of five key inter-related lines of empirical research into leadership practices within social enterprises.

Does diversity matter? exploring workforce diversity, diversity management, and organizational performance in social enterprises

This study explores the dynamics of workforce diversity, diversity management, and organizational performance in social enterprises. Semi‐structured in‐depth interviews were conducted with 14 individuals working in the social enterprise sector in Los Angeles, California, including both top management and regular employees. Data were analyzed using thematic analysis rooted in grounded theory. Overall, high levels of diversity in gender, race/ethnicity, education, and sexual orientation were identified in social enterprises, while low levels of age and value diversity were found. Workforce diversity and diversity management were reported to be crucial factors that positively influence organizational performance. Although interviewees considered diversity management to play an important role in promoting organizational performance, they were less likely to implement diversity management themselves. By providing important insights into workforce diversity, diversity management, and organizational performance in social enterprises, this study contributes to an understanding of the dynamics and provides suggestions for sustainability in social enterprises.

The Polish Social Enterprise Sector Vis-à-Vis the Welfare Regime: Following on the Solidarity Movement?

This paper presents the development of the enterprise sector and the welfare regime in Poland, dominated by two opposing trends originating from the country’s recent history: remnants of the “Communist welfare state” and liberal tendencies that came after the political and economic transformation in 1989. The growing civil society that supplements a deficient welfare system finds its roots in the peaceful underground Solidarity movement of the 1980s which played a great role in liberating Poland. After the political turnover, the Solidarity’s mission-driven approach not only survived, but also helped shape Poland’s contemporary civil society. The outlined mechanisms seem to be significant for understanding the transformation of social economy and the welfare state concept in post-communist Europe. In our paper, we identify six mechanisms underlying the Solidarity movement, which, when subsequently implemented by social entrepreneurs, has guaranteed the success of their organizations. We will also characterize the current welfare state in Poland, as well as the role of social enterprises in filling the gaps and addressing the shortcomings of the welfare state. Several case studies will illustrate the latter.

Social entrepreneurship in the UAE: challenges and recommendations

The purpose of this study is to explore current challenges facing social entrepreneurs in the UAE, and provide recommendations that can contribute to the development of the growing and vibrant community of social entrepreneurs in the UAE. The UAE is a recognised regional and global leader in supporting innovation and entrepreneurship. Recognising this, this study seeks to contribute thoughtful insights that can help the UAE embrace social entrepreneurship and further act as a catalyst to push social entrepreneurship forward within the wider region. Based on primary interviews with key informants, several key challenges were identified related to a lack of institutional support a lack of social and cultural awareness regarding social entrepreneurship within the UAE. Further challenges include a lack of clear benchmarks related to monitoring and measuring social impact. Overall, the challenges identified highlighting the need for more government and institutional support, as well as a stronger link between the corporate sector, academia, and the social enterprise sector.

Social entrepreneurship in the UAE: challenges and recommendations

The purpose of this study is to explore current challenges facing social entrepreneurs in the UAE, and provide recommendations that can contribute to the development of the growing and vibrant community of social entrepreneurs in the UAE. The UAE is a recognised regional and global leader in supporting innovation and entrepreneurship. Recognising this, this study seeks to contribute thoughtful insights that can help the UAE embrace social entrepreneurship and further act as a catalyst to push social entrepreneurship forward within the wider region. Based on primary interviews with key informants, several key challenges were identified related to a lack of institutional support a lack of social and cultural awareness regarding social entrepreneurship within the UAE. Further challenges include a lack of clear benchmarks related to monitoring and measuring social impact. Overall, the challenges identified highlighting the need for more government and institutional support, as well as a stronger link between the corporate sector, academia, and the social enterprise sector.

Policy Clash: The Many Difficulties Facing Charitable Organizations in Canada

With the emerging social enterprise sector, budding ideas in community development, an interest resurgence in local affairs, ever-higher public debt, and the ever-shrinking purchasing power of our dollar due to the poor and inflationary monetary policy of the Bank of Canada, one would think that the not-for-profit and charity sector would be given great leeway to raise funds and do what they do best – help people. The aim of this paper is to summarily demonstrate the ill-designed structure of the present charity law in Canada, to decry the onerous nature of the tax laws imposed on charitable organizations, and how there is a great need for radical reforms in this field if we are to make the charity sector flourish and prosper.Today, Canada is home to 86,000 charities of several sorts (namely, the four heads of charitable that have been recognized at common law for centuries – the relief of poverty, the advancement of education, the advancement of religion, and other purposes that benefit the community in a way the courts have said are charitable), which comprises an estimated cost to the federal government of providing tax relief to individuals for charitable donations of almost $2.4 billion. The gross value of the entire industry (not just charities) is estimated to be at around $190 billion.

Scaling Social Innovation in Europe: An Overview of Social Enterprise Readiness

Social enterprises throughout Europe represent a unique opportunity to fill in social gaps which no other mechanism can cater to. To effectively do this, identifying and scaling successful innovations is crucial, but one-size fits all policies, funding or programs will not be effective, raising the challenge of understanding and mapping out diversity across Europe. The present paper aims to provide an assessment of how integrated the social enterprise sector is based on data collected in the Building a European Network of Incubators for Social innovation (BENISI) program by looking at relationships between the age of social enterprises, financial success, size of teams and strategies to scale.

Social procurement in UK construction projects

Recent developments in the field of social procurement mean that in the future, firms tendering for major construction and infrastructure projects will need to demonstrate that they are not just efficient in project delivery, but also contribute positively to the communities in which they build. The emerging social enterprise sector represents a potentially innovative and sustainable opportunity to meet this new challenge but is poorly understood and grossly under-represented in the construction industry. Through interviews with twelve leaders of successful social enterprises operating in the construction industry, it is concluded that many changes are needed to traditional procurement practices to grasp this opportunity. These include unbundling work packages, reducing tender compliance burdens, changing traditional perceptions of ‘value’ which revolve around lowest price, incorporating social value requirements into existing subcontracts and challenging the dominant role of supply chain incumbents and ingrained negative stereotypes of the disadvantaged groups which social enterprises employ.

A quantitative critique of Kerlin’s macro-institutional social enterprise framework

Purpose– The purpose of this paper is to provide the first large data-set regression analysis to test Kerlin’s (2013) macro-institutional social enterprise framework in relation to the country social enterprise models that flow from it. Kerlin (2013) offers a conceptual framework for country social enterprise models that allows countries to retain their unique understanding of social enterprise and better understand the factors influencing its development.Design/methodology/approach– This paper draws on the theory of historical institutionalism and multiple global datasets to test formal hypotheses on the relationship between macro-institutional factors and the size of the social enterprise sector across countries. Social enterprise data were obtained from the 2009 Global Entrepreneurship Monitor dataset. Hypotheses were tested using logistic hierarchical linear modeling.Findings– Results provide support for the framework at a significant level. Nearly half of the variance in the size of the social enterprise sector can be attributed to countries-level factors. We also find that the size of the social enterprise sector varies by economic competitiveness rank, size of the welfare state and collectivist cultural orientation.Research limitations/implications– The countries included in this study are not representative of the global landscape. Researchers are encouraged to test the framework with a more representative sample of countries, including those in the Global South.Practical implications– The paper includes implications for policy makers and researchers seeking to facilitate cross-regional dialogue, the transfer and support of social enterprises and research.Originality/value– This paper fulfills an identified need to advance the field of social enterprise by quantitatively testing established frameworks.

Understanding social enterprise model development through discursive interpretations of social enterprise policymaking in Australia (2007-2013)

Purpose– The purpose of this paper is to contribute to the prior work on social enterprise (SE) model comparisons by exposing the difficulties in producing universally comparative SE models. Furthermore, this paper seeks to trace different dominant stories of SE based on a combined historical and discursive analysis of Australian institutions shaping SE development.Design/methodology/approach– This paper emulates the methodological approach taken by Kerlin (2013) and uses the same indices and measures adopted in this original model comparison. Although the valuable contribution of macro-level model comparison studies to the growing SE knowledge base is noted, it is proposed that categorisations are naturally exclusionary by their design, omitting emergent SE models and their institutional influences. These omissions pose difficulties for recognising and conceptualising hybrid organisations that often traverse institutional boundaries and frameworks (Dohertyet al., 2014). A discourse analysis of SE policies in Australia was used to illustrate how micro-level appraisals of SE models differentiate from, and complement, the macro-level approach.Findings– A combinatory analysis of Australian SEs, based on historical and discursive institutional theories, provides two stories about these organisations. The first story emerges that Australian SEs are partly shaped by institutions, the historical path-dependencies of which are associated with particular SE characteristics. Alternatively, using a discursive lens, the second story of Australian SEs emerges as a political subject, captured within a broader idea (e.g. social inclusion) that is coordinated between political domains and communicated within the public sphere. Therefore, it is argued that a combinatory approach shows SE models as they are, as well as how they might be – contingent on the implementation of identified policies.Research limitations/implications– The major contribution is to critique and extend Kerlin’s (2013) approach by complementing the macro-level study of SE models with an analysis that considers the local-level innovations that drive unique SE models and applications. To enact this, the authors explore how closely macro-level approaches to SE categorisation are the subject of discursive construction, as well as historical events. Consequently, this paper contributes to existing knowledge by advancing existing approaches to SE model studies, illustrating how different stories of SE can be drawn out from combinatory methods and local knowledge.Practical implications– The practical implication arising from this paper is that SE discourses are both a subject of capture and a site of contestation, meaning that various institutional actors play a role in shaping the “reality” of the field.Social implications– The main social implication of this paper is that Australian SEs make a diverse contribution, but there are dangers that the discursive construction of civil society could narrow and constrain this.Originality/value– The novelty inherent in this approach lies in bringing together two frameworks to explore the same field of action. By replicating Kerlin’s (2013) approach and bringing in a discursive analytical framework, it is shown that macro-level studies of SE sectors are enhanced by combinatory methodologies.

An Exploratory Study on Outcomes of Social Enterprises in South Africa

This article investigates social enterprises in terms of their outcomes. Few studies focus on social entrepreneurs that incorporate an impact assessment of their social enterprises. The article responds to calls where it has been noted that the rapidly expanding social enterprise sector of the economy is evolving without effective evaluation tools that can provide reliable measurement and impact assessment.The study is conducted in two major cities in South Africa, where social entrepreneurship has unequivocal application, considering that traditional government initiatives are unable to satisfy the entire social deficit, and where challenges to non-profit accountability are acute. Social outcomes are measured in terms of the following dimensions: impact/reach, innovativeness of solution, replicability/expandability and sustainability. A survey is used to collect data from 165 social enterprises and is interpreted using descriptive statistics.Results on sample characteristics indicate that a diverse group of individuals are involved in a wide range of social enterprise activities. Descriptive statistics across the dimensions reflect above-average mean scores suggesting favourable perceptions of social outcomes.By providing an elementary measuring tool for social outcomes, researchers can test its validity across different contexts. Social enterprises need to demonstrate solid impact and reach of their outcomes, so they can replicate interventions, build partnerships, and remain sustainable by meeting the needs of groups who have been failed by previous government attempts in social redress.The article provides a much needed account of the evaluation of social enterprise outcomes in an emerging market context.

Trillion Fund seeks to disrupt the paradigm

TRILLION FUND is the British crowdfunding platform that specialises in raising money for renewable energy projects worldwide – and which has just reached a landmark of its own. The platforms merger with Buzzbank, which focuses on the social enterprise sector, is set to create the UK's largest social crowdfunding service. Trillion Fund is here to create the opportunities to make a decent return on an investment whilst giving a little bit back to the environment at the same time.

Scenario planning in social enterprises; the case of South Yorkshire

The concept of social entrepreneurship is increasingly attracting interest as an area of academic scrutiny. Despite this development there is very little scholarly attention given to the way social enterprises plan and develop strategies to address challenges posed by changes in the environment in which they operate. Drawing on a qualitative case study of two enterprises, this study explores the role of scenario planning in the social enterprise sector. The result shows that this strategic management planning technique, traditionally associated with large capitalised commercial enterprises, is becoming a key component of the practice of social enterprises in South Yorkshire.

Building Impact Businesses through Hybrid Financing

AbstractThe paper shows how social enterprises can be funded efficiently, and in ways that are compatible with their underlying business models, by combining both grants and different forms of investment capital. Financial sustainability remains one of the most pressing issues facing the social enterprise sector, despite rapid development over the past few decades. The paper sheds light on select funding instruments revealing how hybrid financing strategies can enable and enhance the organic growth of social enterprises and drive greater impact.

Social Enterprise in Ireland: The Camara Education Experience

The concept “social enterprise”, despite being widespread, is still of difficult interpretation. What is certain is that social enterprises bring great benefits to different communities or groups of disadvantaged people by managing economic activities. This paper analyzes the situation of social enterprises in Ireland, being Ireland an example of a country in which social enterprises still do not have a nationally accepted and agreed definition. The first part of this work gives an up-to-date representation of the Irish social enterprise sector, while in the second part Camara Education is presented as a specific case of successful Irish social enterprise. The Camara Education model will be presented, together with the results obtained and the beneficial impact on society it generates.

Questioning the Legitimacy of Social Enterprises through Gramscian and Bourdieusian Perspectives: The Case of British Social Enterprises

Drawing on data from six social enterprises in the UK, this paper demonstrates that social enterprises negotiate their legitimacy borrowing from the state, the corporation and the service logics. The paper illustrates the existential crises of legitimacy as experienced in the social enterprise sector. The utility of a principled ethical approach is discussed as a way forward. The paper also outlines challenges that social enterprises face when adopting an ethical approach. Theoretical tools of Gramsci and Bourdieu are mobilized in the paper in order to render visible the often implicit and questioned structures of hegemonic power that shape the habitus of legitimacy in social enterprises.

The stories of social entrepreneurs

Purpose– The purpose of this study is to focus on how narratives are used to acquire social venture resources. Social entrepreneurship is a phenomenon of increasing significance. A key challenge for social ventures is resource acquisition. However, how social entrepreneurs gather the resources necessary to grow their organizations is not clear.Design/methodology/approach– This topic is examined using a multi-study, inductive, theory-building design based on 121 interviews, observation and archival data. In Study 1, 75 entrepreneurs, investors and ancillary participants were interviewed in the social enterprise sector. In Study 2, case studies of eight technology-focused social ventures were constructed.Findings– The result of this study is a framework explaining how differences in entrepreneurs’ narrative tactics and characteristics are associated with differences in their resource acquisition success. Specifically, from Study 1, this paper develops a typology of social enterprise narratives, identifies three narrative-types (personal, social-good and business) and shows that they possess unique elements. Evidence from Study 2 suggests that the three narrative-types serve as the building blocks for communication with external stakeholders.Originality/value– These findings contribute to three studies that formed the basis of the study – social entrepreneurship, entrepreneurial resource acquisition and organizational narrative theory – and have implications for work on competing organizational logics. They also produce several practical implications for social entrepreneurs.

Saving the Other: Exploring the social in social enterprise

Social enterprise is increasingly viewed by governments worldwide as a promising means of promoting development. In South Africa, too, this sector is identified as a strategic growth area. Although there is no final consensus on the definition of social enterprise, certain characteristics are generally agreed. These include the idea that social enterprise prioritises social needs over profit maximisation, and involves marginalised people within viable businesses that have socially beneficial outcomes. Academic research on social enterprise has largely come from business studies, focusing on the internal functioning of social enterprise organisations, the figure of the social entrepreneur, the relationship between the social enterprise sector and the state, and on what the sector needs to flourish commercially. Social issues, especially analyses of power within the sector, have been relatively neglected. This paper addresses that gap, drawing on a wider development studies literature on the social economy to inform an examination of power relationships in the craft industry in South Africa, where narratives of social enterprise are pervasive. I argue that although empowerment is an explicit aim of many craft organisations, the most prominent discourses within the industry often rely on and perpetuate objectifying constructions of producers. These manifest particularly through notions of ’saving’, shaping a moral economy that entrenches difference along lines of black–white, north–south, and healthy-diseased. Such discourses run counter to the aims of empowerment that are central to the ethos of social enterprise, and should challenge both policymakers and academics to think carefully about how power works within the sector.

The study of best practice for developing social enterprise for people with disabilities

The study of social enterprise development model for people with disability aimed to establish a fundamental knowledge to apply the concept of social entrepreneurship to enhance the quality of life for the disabled as well as to provide them with the capacity building. Equally importantly was the development of social enterprise sector particularly for those with impairment in Thailand based on the local context and pattern appropriate together with research in order sustain the model for the benefit of people with disability in the country. This research investigated case studies of social enterprises for those with disability from various businesses including group of disabled agriculturalists who operated a Goat Farm in Rayong Province, The Center for Intellectually Disabled Innovation as well as Betimes Solution Co.,Ltd. The study implemented literature review, in-depth interview, questionnaire as well as observation. Summary of the study is presented below. 1. Models of social enterprise based on case studies were different. This could be classified by using the three major components including organizational mobilization, stakeholder engagement and profit management. The study revealed that group of disabled agriculturalists who operated a Goat Farm in Rayong Province could be categorized as a philanthropic model while Betimes Solution Co.,Ltd could be regarded as a commercial pattern. Center for Intellectually Disabled Innovation, on the other hand, comprised of a hybrid model. All of these signified the fact that social enterprise development model could be various. 2. Key social enterprise factors for the business engaged with disabled people based on the case studies could be ranked with three major components including competitive advantage to compete with other businesses and sustain themselves, social entrepreneurship to be able to achieve both financial and social mission effectively with skills, knowledge and confidence and lastly stakeholder engagement to manage the relationships with key partners and become accepted by all parties concerned.

Work Engagement as Mediator between Perceived Participation, Supervisor Support and Altruistic Behaviors: Empirical Results from the Italian Social Enterprise Sector

This research note presents an empirical study conducted in a number of social cooperatives (SCoops). Democratic governance has been identified as a defining aspect of this kind of social enterprise. Using the work and organizational psychology approach, the authors studied the effects of democratic governance and supervisor support on workers’ engagement and organizational citizenship behaviors. The convenience sample technique was used for gathering the data. Data was collected with a self-administered questionnaire. The sample consisted of 258 participants from three different Scoops situated in northern Italy. Statistical analysis results suggest that worker’s perceived participation and supervisor support enhance work engagement, and subsequently, altruistic behaviors. Finally, the authors comment on the limitations of the study giving methodological suggestions for future empirical research.