Social Entrepreneurial Ventures: On the Edge of Chaos?

This paper proposes that social entrepreneurial ventures (SEVs) operate as systems of systems (SoS), a collection of complex systems working together to achieve an overall outcome in line with its mission. Previous literature shows that complexity theory is applicable to the unique structure of SEVs and the dual goals of creating economic and social value. We argue that not only are SEVs complex systems, but also operate as a SoS. As such, SEVs could greatly benefit from a general systemic risk management approach that is often applied to SoS. In order to explain our position, we consider an example of an existing SEV and apply these concepts to their operations. We also identify systemic risks in the example and show how the application of a systemic risk management approach can benefit SEVs.