scholarly journals Downward accountability to beneficiaries in social enterprises: do partnerships with nonprofits boost it without undermining accountability to other stakeholders?

Author(s):  
Maria José Sanzo-Pérez ◽  
Marta Rey-García ◽  
Luis Ignacio Álvarez-González

AbstractThe hybrid nature of social enterprises gives them a high potential for developing social innovations, but at the same time leads to tensions within these organizations. The barriers they face to gain access to traditional sources of funding are pushing social enterprises to reinforce their business models and rely more on commercial activities, and this fact increases the risk of mission drift and can weaken accountability towards beneficiaries of the social mission in favor of dominant stakeholders such as funders or clients of the commercial activities. Our research attempts to analyze whether partnerships between social enterprises and nonprofits strengthen accountability to beneficiaries without hindering accountability to other stakeholders, thus allowing both social and economic objectives to operate together. Based on a survey with a sample of social enterprises partnering with nonprofits, results reveal that as the partnership moves along a collaboration continuum to a transformational stage, accountability to beneficiaries is encouraged, whereas accountability to other types of stakeholders is also improved or, at least, not affected.

Author(s):  
Zuzana Palová ◽  
Jarmila Šebestová

Competencies, skills, and goals are a significant part of social enterprises. They carry out the social mission, but the founders and providers need a set of skills which could help them to be successful in those beneficial projects. The aim of this chapter is to define the rightest competence of the founders of social enterprises in the case of the Czech Republic. These competencies will be a combination of competencies suitable for the profit and non-profit sectors. Finally, the evaluation model of triple benefits is suggested and evaluated. This model is based on the primary research evaluation, and on the social return of investment ratio (SROI). There is a place to improve this situation and evaluate the efficiency of triple benefit by the real societal impact in the region as was proposed in this chapter; on the other hand, effectiveness is built on significant factors based on field study, which support networking, willingness to make social innovations and other activities.


2018 ◽  
Vol 8 (1) ◽  
pp. 1-15
Author(s):  
Jonathan Marks ◽  
Karen Hidden

Subject area Entrepreneurship; Social entrepreneurship. Study level/applicability Graduate level. Case overview This paper, The Brownies & Downies case study, aims to examine a social enterprise that provides employment, training and job placements for people with intellectual disability within a trendy artisanal coffee shop in Cape Town, South Africa. The business is based on a similar establishment (same name) in The Netherlands and was brought to Cape Town by Wendy Vermeulen, a Dutch national who completed a social development internship in Cape Town. The case is located within the field of social enterprise with a particular focus on the tension between purpose and profit and the pressure and challenges of replication, growth and scale/expansion. The protagonist in the case is Wade Schultz, Wendy’s business partner, who is grappling with how to not only remain true to the social purpose of the business but also turn a profit in the pressured and competitive coffee industry. He is further challenged by deciding whether to expand the existing training business into other sectors or seek a replication model in other South African cities as a means of growing revenue and increasing the social impact. Expected learning outcomes The key learning from this case study are as follows: First, intellectual disability is a hidden form of disability, often misunderstood and subject to prejudice and discriminatory hiring practices. Intellectual disability exists on a scale – some individuals are able to work outside of pretexted or sheltered workspaces. Greater effort is required within open workplaces to sensitive staff to working with/alongside intellectually disabled people. This case illustrates a social enterprise model that seeks to bridge the gap between sheltered workspaces and open workspaces. Second, most social enterprises grapple with the tension between profit and purpose; this case presents a company that is living this dilemma. The importance of remaining true to purpose needs to be balanced carefully against becoming economically self-sufficient; however, the pursuit of profits should not happen at the cost of social mission. Alternate business models are a mechanism to building revenue to support the social objective. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS: 3: Entrepreneurship.


2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Kevin McKague ◽  
Farouk Jiwa ◽  
Karim Harji ◽  
Obidimma Ezezika

Abstract Background The challenge of enhancing food security and livelihoods for smallholder farmers has been a significant concern in the agricultural development field. To increase farm productivity and enable smallholder farmers to rise out of poverty, several organizations have initiated social franchising business models to create sustainable social enterprises. Social franchising has recently gathered increased interest in lower-income countries for its potential to address social and ecological issues, support local entrepreneurs, and reach financial sustainability to allow for scaling through market forces. Social franchising combines the principles of business franchising (standardized systems and other supports that reduce risk for the entrepreneur) with a social mission. To gain deeper insights into the opportunities and challenges for scaling social franchises, we gathered quantitative and qualitative longitudinal data on Farm Shop, a social franchise with a network of 74 agricultural input shops seeking to reduce food security through improving productivity, incomes and food security of smallholder Kenyan farmers. Results We derived five critical lessons from our findings. First, social franchising can create jobs and profitability for farmers and strengthens the rural entrepreneurial ecosystem. Second, economics of scale is critical for profitability and sustainability of the social franchisor. Third, building trust with farmers is crucial for a successful social franchising model. Fourth, social franchisors should be aware of the variety of options to ensure the sustainability of the social franchising program. Fifth, to develop a scalable business model, cost-effectively gathering the right data to validate key assumptions is essential. Conclusions Farm Shop is one of a cohort of pioneering social franchises that have applied the principles of franchising to address particular social needs. In this case, the needs were food security, livelihoods, and prosperity for smallholder farmers. Farm Shop uncovered important lessons relevant for all social franchises at similar stages in the business model development process. With these lessons in mind, Farm Shop and other social franchises can be better equipped to live up to social franchising’s promise of achieving social objectives in a more resource-efficient and sustainable way.


2017 ◽  
Author(s):  
◽  
Kamila Jambulatova

This qualitative study examined how feminist online publications can adopt social enterprise business models. The focus group analysis of the audiences of Refinery29, Bustle, HelloGiggles, and Jezebel first explored the audience's outlook on the commodification of feminism. The focus group also considered plausible ways of adopting social enterprise initiatives to diversify revenue streams of these publications, continue promoting gender equality, and to better establish the images of the publications. During four focus groups, twenty total participants shared a variety of feedback, including their opinions on the commodification of the feminist movement and the commodification of editorial content. They talked about how their purchasing decisions are affected by their desire to contribute to the social good. Other themes identified during the study were white feminism, the trivialization of feminist content, and the importance of companies' policies.


Author(s):  
Filip Majetić ◽  
Dražen Šimleša ◽  
Miroslav Rajter

This chapter explores management practices at work integration social enterprises (WISEs) in Croatia. WISEs are conceptualized as social mission-oriented organizations whose: 1) (financial) self-sustainability depends on success in conducting continuous commercial activities and 2) social mission is to (better) integrate vulnerable groups into the labor market (e.g., disabled people). The final sample included 23 organizations. The data was collected through in-depth interviews. The interviewees were selected purposively and included one highly ranked executive (director, owner, CEO, etc.) per each organization. The analysis revealed the following fields of management practices as the most significant: generation of business ideas, unique selling points, employee autonomy and decision-making process, division of labor, relationship with the “parent organization,” sources of funding, human resource configuration, staff development activities, and networking.


Author(s):  
Ramon Bastida ◽  
Marta Mas-Machuca

Social enterprises (SEs) have an important role in the social services provision. Many of those enterprises provide services, such as care services to elderly people and young people at risk of exclusion, work integration services, mediation, etc. In European Union (EU) countries, public administrations are obliged to provide these services to the citizens, although they externalize the provision to SEs. In this chapter, the financial strategies of SEs are analyzed in order to assess if they have any impact on mission drift. The analysis is based on the experiences of three SEs that provide social services in Catalonia, Spain. Several interviews with managers and board members of SEs were done. The results indicate that there is an important financial dependency of these SEs on the public administration. Therefore, SEs have problems to remain mission-focused, and a mission drift into market positions has been observed.


Author(s):  
Nor Razinah Mohd. Zain ◽  
Najim Nur Fauziah ◽  
Habeebullah Zakariyah ◽  
Azman Mohd. Noor

This research explores the potential of cash waqf in generating capital revenue in carrying out social-based investment through social enterprises. Looking closely into two different concepts (i.e., social enterprises and waqf), this research appreciates the understanding on the modern business model of social enterprise and the innovative version of religious social finance (i.e., cash waqf). Depending on qualitative methodology and analytical review, the discussion of this research is developed. These approaches are considered suitable and pragmatic for the suggested business model of social enterprise. Here, an innovative business model with a combination of social enterprise operation and cash waqf is introduced. It has the potential to stimulate further research to innovate religious social finance instruments to current and modern business models. This research proposes a business model of social enterprise that combines cash waqf in its operation for sake of generating capital revenue. Simultaneously, such a business model has the potential to expand the cash waqf in meeting social objectives of the social enterprise. As research findings, it is found that even though waqf is derived from a religious traditional philanthropic instrument, its innovative version of cash waqf can be utilised in generating capital revenue for social enterprises. As long as the required principles of cash waqf as provided under Islamic law is fulfilled, a combination of cash waqf in the operation of social enterprise can be carried out.


2019 ◽  
Vol 11 (20) ◽  
pp. 5805 ◽  
Author(s):  
Jabłoński ◽  
Jabłoński

The current principles of doing business differ radically from those that were applied a few years ago. Global economic crises have shown that business must have a more social character. This gave rise to the creation of management solutions that would guarantee the satisfaction of a wide range of corporate stakeholders. In this context, ideas based on social potential began to emerge. As a consequence, the concept of social business models was born, accompanied by an attempt to search for the best business models possible in order to build the appropriate configuration of their components. According to the authors, an attribute of trust may be such a component based on which effective social business models can be built. As water supply companies are social enterprises, they have become the object of scientific research in this case. The purpose of the article is to determine the position of trust in the construction and application of social business models of water supply companies. The scope of the article includes scientific research into water supply companies in the most industrial region of Poland, Upper Silesia, with the most extensive and dense water supply network in the country. In this article, the AHP (analytic hierarchy process) method was used to conduct research. The aim of the analysis was focusing on the issue of trust as a key factor in shaping the social business model of the company. In the questionnaires, respondents were asked to answer questions on the following issues: trust-based organizational behavior at the company; trust-based social capital at the company; trust-based relationships at the company; trust-based processes and activities at the company; trust-based risk at the company; and the trust-based business model at the company. The adopted logic of the scientific argument conducted indicates that trust and its place and role in the social business model of a water supply company have a significant impact on the social and economic performance of the water supply company, and as a consequence, on increased social responsibility towards stakeholders as well. Trust even stabilizes the organization and its business model; it is also a value catalyst and neutralizes the potentially negative impact of the organization on other entities gathered around it. Trust as a stabilizer can also affect the consistency and scalability of the social business model of a water supply company.


2015 ◽  
Vol 57 (3) ◽  
pp. 481-524 ◽  
Author(s):  
Sara Thorgren ◽  
Adesuwa Omorede

Nonstate actors such as social enterprises are increasingly influential for addressing pressing social needs in sub-Saharan Africa. Moving responsibility from the state to private entrepreneurs calls for a greater understanding of how single individuals achieve their social mission in a context characterized by acute poverty and where informal institutions, such as trust and collective norms, are strong governance mechanisms. This study recognizes the role of leader passion as a key element for gaining people’s trust in the social enterprise leader and the social mission. Qualitative data were collected on 37 leaders of Nigerian social enterprises in arenas such as health, women’s rights, children’s rights, AIDS/HIV care and education, and sustainable development. Drawing on 100 semistructured interviews, the authors develop an inductive model illustrating how leader passion interrelates with the social enterprise organizing and outcomes.


2019 ◽  
Vol 44 (4) ◽  
pp. 209-219
Author(s):  
B Elango ◽  
Stephen Chen ◽  
Jim Jones

The purpose of this article is to understand what drives social enterprises in bottom of the pyramid (BOP) markets to stick to or drift away from their social mission. Based on an analysis of 192 microinsurance operators in 26 emerging markets, we find that (1) when donors are involved in the operations of the social enterprise, this leads to a greater commitment to the social mission and (2) social enterprises located in countries with poorly performing governments tend to have a lower commitment to their social mission. Given the need for social services in such countries, we offer some suggestions to increase the chances of social enterprises staying committed to their social mission.


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