Delineating novel aspects of social enterprise theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Patrick J. Murphy ◽  
Artem Kornetskyy ◽  
Joseph T. Nixon

Purpose Social enterprises are defined in practice in terms of one operational model generating measurable value in more than one of the economic, social and natural/ecological value denomination categories. However, entrepreneurship theory does not generally or explicitly reflect this definition, which has generated confusion about the social enterprise concept. The purpose of this paper is to contribute to social enterprise theory by delineating novel aspects of this definition and their conceptual ramifications. Design/methodology/approach The authors review the social enterprise literature with a focus only on the most original contributions and most distinct research questions. The authors do not explicitly review research on traditional for-profit entrepreneurial ventures, not-for-profit/non-governmental organizations or mainstream social entrepreneurial ventures. Findings The authors offer several implications for social enterprise theory based on practices that are unique to the area but not amenable other areas of entrepreneurship. The contribution is instrumental to establishing social enterprise as a distinct theoretic area. Originality/value By focusing on novel aspects of social enterprise not easily explainable by mainstream theoretic traditions, the authors offer an original contribution to the development of social enterprise theory.

2018 ◽  
Vol 14 (1) ◽  
pp. 71-91 ◽  
Author(s):  
Brad Jackson ◽  
Matthew Nicoll ◽  
Michael J. Roy

Purpose The 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/approach An 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. Findings While 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/value As 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.


2019 ◽  
Vol 30 (6) ◽  
pp. 1645-1649
Author(s):  
Venelin Terziev ◽  
Nikolay Nichev ◽  
Marin Georgiev

The Economic and Social Council of the Republic of Bulgaria (ESC) believes that social enterprises in Bulgaria are still an untapped business model. Current social enterprises are mainly non-governmental organizations by applying the relevant legislation creating social enterprises whose business is focused on the realization of the social purpose and mission of the organization. Social enterprises in Bulgaria operate in various sectors, the most serious part are in: the delivery of social services; providing jobs for people with disabilities; mediation in finding employment of unemployed persons; provision of health services; аctivities in the field of education and others.In realizing these activities the leading is not the end product but the achieved social effect on individuals themselves expressed in obtaining the necessary support to integrate into society. In this sense, there are three basic models of social enterprises:The most common model is the one that creates jobs and develops the workforce. By business jobs are created primarily for people with disabilities. Most often the social enterprise is the employer of people with disabilities in order to achieve the integration of persons with disabilities in the labor market and create conditions for a better life.Another popular model of a social enterprise is the one in which the enterprise produces goods and seeks markets, also engaging with their distribution. Most often social enterprises involve persons with disabilities in the form of occupational therapy involved in the production of certain goods. Existing social enterprises in Bulgaria within this model are engaged in the manufacture of certain products by persons who are unemployed or socially excluded. The aim is to enable them to work and improve their social inclusion.The third existing model in Bulgaria is related to the provision of social services generally through payment of external customers, while social enterprise provides social services to its members. Payment is under contract with the state or a municipality. Within this model, services are provided to different users paid directly to social enterprise for direct service.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Francisco Layrisse ◽  
Ezequiel Reficco ◽  
Andrés Barrios

PurposeThe purpose of this study is to identify how the value dynamics of the freemium business model (BM) play out in a social enterprise.Design/methodology/approachWe draw on a multiple case study of two social enterprises –one nonprofit (Aravind Eyecare) in Asia and one for-profit in Latin America (Biodent)– to analyze the implications of applying the value architecture of a freemium BM to social enterprises.FindingsThe freemium BM departs from standard practice when applied in social enterprises. Meaningful differences include the feasibility/desirability of converting free users to paying ones, the presence of significant variable costs –which requires balancing the ratio of free and paying customers– and the use of nontraditional pricing schemes to enhance value capture. The social freemium BM can increase scalability, value creation and value capture. Under this model, “beneficiaries” can be more than passive recipients of value and contribute to a venture's success in various ways –such as lowering its operational costs or enhancing its value proposition toward third parties.Originality/valueWhile in the past years commercial enterprises have been disrupted by the emergence of freemium platforms, the social enterprise field has barely taken notice. We extract lessons and implications from this paradigmatic change for the theory and practice of business model innovation in social enterprises, of particular relevance to Latin America, where social and environmental disequilibria remain a recurring feat.


2017 ◽  
Vol 36 (1) ◽  
pp. 97-108 ◽  
Author(s):  
Sandeep Goyal ◽  
Bruno S. Sergi ◽  
Amit Kapoor

Purpose The 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/approach This 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. Findings The 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 implications The 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/value This 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


2021 ◽  
Vol 11 (1) ◽  
pp. 1-19
Author(s):  
Vinit Vijay Dani ◽  
Meeta Dasgupta

Learning outcomes The learning outcomes of this paper is as follows: to showcase how a futuristic mission and planned branding initiatives can help start-up social enterprise to create a successful brand; to explain how a comprehensive understanding of the target group and innovative products/services and channel strategies help GoBhaarati position itself as an upcoming not for profit social enterprise; to argue how proper brand mission and branding can help even a small startup to create a brand identity in a fiercely competitive fragmented market dominated by big players; the constraints GoBhaarati faced in constituting and aligning distribution channel. These impulsions can have legal, environmental and or managerial foundations. Case overview/synopsis GoBhaarati Agro Industries and Private Limited (GoBhaarati) operated as a nonprofit social enterprise in the Health and Wellness Industry, providing natural indigenous traditional Indian products such as millets, honey, turmeric, jaggery, rock salt and serving millet-based snacks to consumers. At the epicenter of Gobhaarati's branding strategy was its health and wellness positioning. The company's mission was to increase the positive perception of millets and to convince consumers that there was intrinsic value in a product's origin and production processes. Iriventi aimed to achieve a turnover of at least ten crores by 2025, but the company's sales and financial resources were limited. With this clouding in mind, Iriventi could not decide whether to let GoBhaarati stay niche in business or to expand it organically. Complexity academic level Graduate and executive management education students can use the case. The case may also be used to focus on entrepreneurship and distribution management for start-up social enterprises. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 8: Marketing.


2016 ◽  
Vol 12 (2) ◽  
pp. 235-254 ◽  
Author(s):  
Jane Farmer ◽  
Tracy De Cotta ◽  
Katharine McKinnon ◽  
Jo Barraket ◽  
Sarah-Anne Munoz ◽  
...  

Purpose This paper aims to explore the well-being impacts of social enterprise, beyond a social enterprise per se, in everyday community life. Design/methodology/approach An exploratory case study was used. The study’s underpinning theory is from relational geography, including Spaces of Wellbeing Theory and therapeutic assemblage. These theories underpin data collection methods. Nine social enterprise participants were engaged in mental mapping and walking interviews. Four other informants with “boundary-spanning” roles involving knowledge of the social enterprise and the community were interviewed. Data were managed using NVivo, and analysed thematically. Findings Well-being realised from “being inside” a social enterprise organisation was further developed for participants, in the community, through positive interactions with people, material objects, stories and performances of well-being that occurred in everyday community life. Boundary spanning community members had roles in referring participants to social enterprise, mediating between participants and structures of community life and normalising social enterprise in the community. They also gained benefit from social enterprise involvement. Originality/value This paper uses relational geography and aligned methods to reveal the intricate connections between social enterprise and well-being realisation in community life. There is potential to pursue this research on a larger scale to provide needed evidence about how well-being is realised in social enterprises and then extends into communities.


2018 ◽  
Vol 14 (4) ◽  
pp. 410-428 ◽  
Author(s):  
Suvi Kokko

Purpose This paper aims to understand how social value is created in a context characterized by institutional complexity. By identifying stakeholders interacting in a social enterprise and the logics guiding their expected and experienced value, the study describes how social value is created when different institutional logics embedded in strong-tie networks are bridged. Design/methodology/approach Concepts of structural holes and institutional logics were applied to the empirical case of a social enterprise. Interviews provided the primary empirical material, but multiple data collection methods were used. Findings A shared goal facilitated co-existence of competing value logics, and provided common space forming multiple social value outcomes as products of the different logics. Research limitations/implications Limited to one case, this study shows that the interaction of otherwise unconnected stakeholders in a social enterprise, and their embeddedness in different institutional logics, provides one explanation for why and how social value is created. Practical implications Acknowledging and addressing gaps in knowledge and resources can lead to social value creation if social enterprises remain open to different logics. This suggests that co-existence of different logics can be a key factor for successful social value creation in social enterprises, if the competing logics are turned into complementary sources. Originality/value Dependency on logics from different networks of stakeholders shapes social enterprises to produce outcomes consistent with the different logics. The multiplicity of social value outcomes poses challenges for evaluating the success of social enterprises, especially when the tendency is to use evaluation approaches from the for-profit sector, focusing on the economic logic.


2018 ◽  
Vol 24 (3) ◽  
pp. 697-713 ◽  
Author(s):  
Katy Gordon ◽  
Juliette Wilson ◽  
Andrea Tonner ◽  
Eleanor Shaw

Purpose The purpose of this paper is to examine the impacts of social enterprise on individual and community health and well-being. It focusses on community food initiatives, their impact on the social determinants of health and the influence of structure on their outcomes. Design/methodology/approach Using an interpretive qualitative approach through case studies focussed on two community food social enterprises, the research team conducted observations, interviews and ad hoc conversations. Findings Researchers found that social enterprises impacted all layers of the social determinants of health model but that there was greater impact on individual lifestyle factors and social and community networks. Impact at the higher socio-economic, cultural and environmental layer was more constrained. There was also evidence of the structural factors both enabling and constraining impact at all levels. Practical implications This study helps to facilitate understanding on the role of social enterprises as a key way for individuals and communities to work together to build their capabilities and resilience when facing health inequalities. Building upon previous work, it provides insight into the practices, limitations and challenges of those engaged in encouraging and supporting behavioural changes. Originality/value The paper contributes to a deeper insight of the use, motivation and understanding of social enterprise as an operating model by community food initiatives. It provides evidence of the impact of such social enterprises on the social determinants of health and uses structuration theory (Giddens, 1984) to explore how structure both influences and constrains the impact of these enterprises.


Author(s):  
Martyna Wronka-Pośpiech

Although research on social entrepreneurship has been expanding in recent years, the literature regarding business models in the context of social enterprises is still limited. This chapter explores the issues of business models in both profit and nonprofit contexts and discusses how value, being both the foundation and the overall outcome of the business model employed, is created. It begins with the background on the characteristics of social enterprises. This is followed by the conceptualization of business models and their components designed to account for their unique. Then a case to illustrate it is presented. The objective of the chapter is twofold. First, it is to analyse how nonprofit business models are different from its for profit counterparts (at the conceptual level) and to introduce relevant analytical framework. Secondly, the chapter aims at providing a case based on the particular model of a social enterprise in Poland (social co-operative) in order to investigate whatever the business models for profit firms could be applied in the social enterprises.


2012 ◽  
Vol 2 (8) ◽  
pp. 1-13 ◽  
Author(s):  
Henrietta N. Onwuegbuzie ◽  
Gordon N. Adomdza ◽  
Fredrick O. Ogola

Subject area Entrepreneurship. Study level/applicability This case is intended for teaching entrepreneurship in any tertiary institution including graduate business schools where the case study method is used. It can also add value to groups interested in creating social value such as non-governmental organizations (NGOs). It can be taught in a 60-90 minute class depending on the size of the class and type of audience. Case overview The case highlights features of indigenous entrepreneurship in a traditional African setting and showcases the merits of traditional training methods. An intriguing case of a social enterprise, inspired by the difficult experiences of an entrepreneur, who grew up in dire poverty. The polygamous family situation she was in led to establishing an enterprise that ensured her livelihood and a means to lift others from poverty. The case provides a unique model of a hybrid family business and social enterprise and illustrates that businesses can do good and still do well financially. Expected learning outcomes Learning points include: appreciation of the socio-cultural and economic context of indigenous entrepreneurs; entrepreneurial motivations and their impact on society; how traditional societies transmit entrepreneurial skills; illustration of how theoretical frameworks like network theory and effectuation impact on entrepreneurial ventures; and how challenges of family businesses such as leadership and succession may be overcome through timely planning. Supplementary materials Teaching notes are available, consult your librarian for access.


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