Legitimacy Acquisition and Social Enterprises

Author(s):  
Kowtha Rao ◽  
Rajesh Rajaguru

Social enterprises typically are founded to fulfill social objectives that are underserved by the state and the private sector. Social enterprise sustainability often hinges on the continuing legitimation by multiple stakeholders who may have conflicting interests. Without such legitimacy, the enterprise will neither attract resources to sustain itself, nor will it be able to serve its constituents according to its original mission. Several authors on corporate social opportunity and social enterprise have recognized legitimacy as essential for the organization. However, few have examined how social enterprises establish socio-political, pragmatic, normative, and cognitive legitimacy. In this chapter, the authors explore the question of legitimacy acquisition by social enterprises founded and managed by social entrepreneurs. The chapter presents three cases of social enterprise in India, which serve in agriculture, healthcare, and housing. The case studies demonstrate that the process of legitimacy acquisition for a social enterprise parallels that of a profit-oriented entrepreneurial organization with some significant differences. Implications for legitimacy and sustainability of social enterprise are discussed.

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):  
Daniel B. Cornfield

This chapter considers the pathways to becoming an artistic social entrepreneur. Previous research on social entrepreneurs has emphasized the impact of one's stock of human, social, and cultural capital on one's mobilization of requisite resources for launching and sustaining a social enterprise. Less sociological attention has been given to the influence of career-biographical factors, such as family, religion, education, and pivotal career turning points that may inspire and compel one to become a social entrepreneur and to envision and shape one's social enterprise, let alone an artistic social enterprise. The profiles of four artistic social entrepreneurs in this chapter illustrate how their strategic and risk orientations and career pathways shape the social enterprises they envision and influence their assumption and enactment of their roles as artist activists.


Author(s):  
Anja Herrmann-Fankhänel

Socially sustainable development can be driven by individuals, entrepreneurs, growing start-ups, and international companies. As social entrepreneurs, people opt for a form of organization that contributes to social improvement through entrepreneurial means. The question is: How do they do it? The resource dependence approach (RDA) assumes that all decisions and activities of a (social) enterprise are based on information about its environment. Therefore, the four key components of the social enterprise (individual, organization, social innovation, market orientation) must be appropriate. In this chapter, therefore, social enterprises are outlined as active participants and shapers of the economy and society. Since an active improvement with regard to socially sustainable development is focused by the social enterprises in Africa, a description of the social enterprise's environment is also given within the framework of topical focuses. The goal is to derive recommendations about action for social enterprises to achieve their goals.


2019 ◽  
Vol 11 (2) ◽  
pp. 522 ◽  
Author(s):  
Georg Eichler ◽  
Erich Schwarz

Interest in social innovations (SIs) from both the academic and the policy side is growing. Nonetheless, we still know little about which sustainable development goals (SDGs) SIs already address. Furthermore, only little is known about who the innovators developing and implementing SIs are. In this paper, we aim to bring more clarity and structure to the field of SIs. Firstly, a systematic literature review was conducted, before a content analysis was used to analyze the definitions used with regard to similarities. Secondly, all case studies described in the reviewed articles were then further systematically analyzed in order to identify the social or environmental problems addressed and the innovators involved. For the purpose of classifying the diverse types of problems, we used the globally known and broadly accepted 17 sustainable development goals (SDGs). Results showed that most SI case studies deal with an improvement of health and well-being. Furthermore, our study illustrates that there is a pronounced difference in the focus of SIs between developing and developed countries. Concerning the innovators, our results indicate that five types of innovators are fundamentally involved in developing and implementing SIs: social entrepreneurs, NGOs and non-profits, public institutions, civil society, firms, and social enterprises. Our definition analysis as well as the identification and classification of the innovators and addressed social needs bring much-needed clarity and structure to the field. However, our systematic review shows that SI is still in its infancy and it will be interesting to see where the field will head.


2017 ◽  
Vol 13 (4) ◽  
pp. 376-391 ◽  
Author(s):  
Eugene Remy Rwamigabo

PurposeThe purpose of this paper is to analyze the context, the concept and the main types of social enterprises in Rwanda, and to present its main institutional and contextual trajectories. Design/methodology/approachThe author carried out a literature review and interviews. Six categories were identified; each one is illustrated by one emblematic case. FindingsThe paper presents the evolution of economically oriented social organizations in Rwanda, mostly under the form of cooperatives and NGOs and with inspiration from traditional forms of mutual help. The context of emergence of social enterprise in Rwanda was shaped, among other factors, by Anglo-Saxon influence. Other factors include notably the aftermath of the 1994 genocide against Tutsi, the current governance prevailing in the country and the current entrepreneurships trends. The paper also underlines the absence of research on the subject in Rwanda. Six categories of social enterprises in Rwanda and their main features have been identified and analyzed, namely, NGOs, cooperatives, informal organizations, social entrepreneurs, public/private partnerships and companies carrying out social activities. Finally, the paper analyzes the institutional and contextual trajectories of social enterprise in Rwanda. Originality/valueThe paper explores and provides insights into the specificities and the current trends of social enterprise in Rwanda with a view to fostering further analysis for several research avenues.


2018 ◽  
Vol 8 (1) ◽  
pp. 1-28
Author(s):  
Zoha A. Karmali ◽  
Meena Galliara ◽  
Manjari Srivastava

Subject area Social Entrepreneurship. Study level/applicability This case study can be used on the module on introduction to social entrepreneurship for postgraduate students specializing in Social Entrepreneurship or Social Work. Case overview This case explores the difference between social entrepreneurship and idealism. It captures the journey of Charlene Vaz and Kavita Gonsalves, two passionate young women, who formed “The Bake Collective” (TBC). Kavita and Charlene are both full-time employees, who spend their weekends and evenings running TBC and through bake sells raise funds for supporting social causes. The women have been able to get a teacher hired for differently abled children, provide water purifiers to victims of the Nepal earthquake, furnish a classroom in a school for less privileged children and provide teaching material for schools in over 400 villages in the State of Maharashtra in India. The case highlights the power of volunteering for a cause that can result in developing a social enterprise. It helps to unfold the steps undertaken to kick-start the cause as well as the risks involved in the start-up stage. It also discusses the measures that can be taken to mitigate the risks in the start-up phase and the ways by which social entrepreneurs can scale and grow their programme. Expected learning outcomes From this case, students will learn about the factors that lead to the germination of a social enterprise and identify characteristics of social entrepreneurs. They will be able to understand critical factors required to sustain start-up enterprises. The case will also enable students to explore systems and processes that need to be designed to sustain the start-up phase. Further, the case will help students to brainstorm on growth strategies for social enterprises. 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.


Author(s):  
Dana Brakman Reiser ◽  
Steven A. Dean

Social Enterprise Law presents a series of audacious legal technologies designed to unleash the potential of social enterprise. Until now, the law has been viewed as an obstacle to social entrepreneurship, too inflexible to embrace for-profit businesses with a social mission at their core. Legislators have poured resources into creating hybrid corporate forms such as the benefit corporation to eliminate barriers to the creation of social enterprises. That first generation of social enterprise law has not done enough. The authors provide a framework for future legislation to do what benefit corporations have not: create durable commitments by social entrepreneurs and investors to balance financial gains and social mission by putting a speed limit on profits. They show how sophisticated investors need not wait for the advent of these legislative changes, outlining a contingent convertible debt instrument that relies instead on financial engineering to build trust between those with capital and those ready to use it to nurture a double bottom line. To allow social enterprises to harness the vast power of the crowd, they develop a tax regime that would provide crowdfunding platforms the means to screen the commitment of for-profit startups. Armed with these tools of social enterprise law 2.0 and the burgeoning metrics of measuring public benefit, entrepreneurs and investors can navigate even the turbulent waters of exit without sacrificing mission, so that a sale need not mean selling out.


2015 ◽  
Vol 11 (2) ◽  
pp. 116-137 ◽  
Author(s):  
Bokgyo Jeong

Purpose – This paper aims to examine the distinctiveness of South Korean social enterprises from a historical institutionalism perspective. From this perspective, the author focuses on the proactive roles played by the government in the process of emergence and formulation of social enterprises in South Korea. The author roots this paper in the concept of the developmental state and examines how this concept applies to newly emerging social enterprises in South Korea. Design/methodology/approach – This paper first introduces the process of South Korean social enterprises’ emergence as an independent phenomenon. The author explains the process with a link to governmental actions, such as the introduction of public programs and government acts. Second, this paper introduces the concept of developmental state which captures the proactive role of the state in social, economic and political development in South Korea. Third, this paper applies the institutional framework proposed by Kerlin (2013) to see how the South Korean social enterprise model can be located from a comparative perspective and how the South Korean model can contribute to the expansion of the existing framework. Findings – This paper finds that the state involvement in South Korea is a reflection of the historical path of the developmental state. The cross-comparison of South Korean social enterprises from a historical institutionalist approach finds that the South Korean case may contribute to the ongoing scholarly debate by suggesting taking a Weberian ideal type of an interventionist state into account for an extension of the proposed framework. This paper also uncovered the strategic approach of the South Korean Government in utilizing this public policy tool by adopting and combining existing social enterprise models. Research limitations/implications – This paper demonstrates the state’s intents to mobilize economic and societal resources as public policy intervention tools, which can be understood from a developmental state context. This role would be distinct when compared to those in Europe and the USA. This paper has a limitation to restrict its analytical scope to formally recognized social enterprises because it focuses on the role of the state in utilizing social enterprises for public policy agenda: social development and social welfare provision. Practical implications – As a practical implication, this study might provide an insightful framework for South Korean public policy makers, outlining the contributions and limitations of state-led public policies associated with social enterprises. As seen in the historical path of governmental interventions, governmental public policies do not necessarily guarantee their sustainable community impacts without the consideration of private or nonprofit actors’ spontaneous involvements. The flip side of state-led interventions requires policy makers to become more cautious, as they address social problems with public policy intents. Originality/value – The majority of current studies on social enterprises in South Korea mainly focus on reporting the quantitative increase in the number of registered social enterprises. Beyond this quantitative description of its achievement, this paper also provides a historical narration and philosophical background of this phenomenon. Additionally, it shows how this artificial government intervention in social enterprises could be accepted from a historical perspective and brought remarkable responses from the private and civil society sectors in South Korea.


2018 ◽  
Vol 10 (8) ◽  
pp. 2643 ◽  
Author(s):  
Changhwan Shin

Schumpeter argued that entrepreneurship brings about creative destruction in capitalist economies. South Korea enacted the Social Enterprise Promotion Act in 2007 to promote corporate social enterprise. However, despite government support, social enterprises in Korea are not successful, especially in social and economic performance, which is defined as the social and economic value that social enterprises should pursue. A questionnaire survey was conducted among 100 social entrepreneurs, and the structural equation model was used as the research method. The results of the analysis are as follows. Openness and innovativeness have a positive direct impact on economic as well as social performance. In addition, openness and innovativeness play a mediating role not only in social performance, but also in economic performance. This paper suggests theoretical and policy implications based on the above analysis.


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