Social Enterprise Journal

Fernandes, Eduardo da Silva; Grochau, Ines Hexsel; ten Caten, Carla Schwengber; Horst, Diogo José; Andrade Junior, Pedro Paulo

2024 Social Enterprise Journal

doi: 10.1108/sej-04-2023-0043

This paper aims to identify the determining factors for the financial performance (FP) of social enterprises in an emerging country, in this case Brazil.Design/methodology/approachThis paper identifies the determinants of the FP of social enterprises in Brazil using the resource-based view as a theoretical lenses and the quantitative method (n = 601) of logistic regression, analyzing the importance of nine variables related to SEs.FindingsThe findings refer to practical contributions (which show how SEs should focus and allocate their resources to maximize FP) and theoretical contributions linked to entrepreneurship literature (by differentiating the results of this work from the literature on commercial entrepreneurship in terms of resources), social entrepreneurship literature (by presenting the resources that determine their FP), business literature, entrepreneurial finance and entrepreneurship in emerging economies.Originality/valueThis work represents a novelty from a methodological point of view, filling the gap regarding the lack of studies that apply a quantitative methodology to a large sample and analyze several different variables when most studies analyze only one factor related to the performance of an organization. It also fills the gap in entrepreneurship studies that use some theoretical lenses. This work is also a pioneer in analyzing the variables involved, such as market orientation, technologies and impact measurement in social entrepreneurship. As this work uses data from a secondary sample, there is the limitation of not choosing the analyzed variables. Even though there were many variables in the sample, it was impossible to consider some variables, referring to various aspects of resources and performance. For this same reason, the social performance of SEs, which is of fundamental importance within the objectives of any organization of this type, was not analyzed and may be a suggestion for future work.

Kiss, Márta; Rácz, Katalin

2024 Social Enterprise Journal

doi: 10.1108/sej-09-2023-0112

Using the theoretical framework of the substantive economy, this study aims to point out the main aspects of the substantive mode of operation that help the integration of disadvantaged people while at the same time shedding light on the barriers that hinder economically efficient functioning in a market economy.Design/methodology/approachResearch focuses on Hungarian rural work integration social cooperatives, which are engaged in producing activity by the employment of disadvantaged people. In the research, mixed methods were applied: results of a questionnaire survey covering 102 cooperatives, as well as 20 semi-structured interviews and experiences from the field. A total of 17 indicators were used to explore the substantive operational features, promoting mechanisms and problems in the following areas: organisational goals and outcomes; integrating roles and functions; productive functions; and the embeddedness of cooperatives.FindingsAs for results, substantive operational mechanisms and tools that support the integration of disadvantaged people have been identified such as mentoring, social incentives, the ability to create local value or the expansion of local community services. At the same time, several barriers have been detected that make it difficult to operate economically, such as cooperatives being a stepping stone for workers, excessive product heterogeneity or the lack of vertically structured bridging relationships.Originality/valueThe value of the study is to counterpoint the mechanisms promoting social purposes of work-integration social cooperatives and the obstacles to their long-term sustainability within the framework of the substantive economy, to better understand their functioning and the less quantifiable factors of their performance.

Olmedo, Lucas; O’Shaughnessy, Mary; Holloway, Paul

2024 Social Enterprise Journal

doi: 10.1108/sej-09-2023-0105

This study aims to conduct a geographical analysis of the distribution and type of activities developed by social enterprises in rural and urban areas of Ireland.Design/methodology/approachThe study analyses data of more than 4,000 social enterprises against a six-tier rural/urban typology, using descriptive statistics and non-parametric tests to test six hypotheses.FindingsThe study shows a geographical rural–urban pattern in the distribution of social enterprises in Ireland, with a positive association between the remoteness of an area and the ratio of social enterprises, and a lack of capital-city effect related to the density of social enterprises. The analysis also shows a statistically significant geographical rural–urban pattern for the types of activities developed by social enterprises. The authors observe a positive association between the remoteness of the areas and the presence of social enterprises operating in the community and local development sector whereas the association is not significant for social enterprises developing welfare services.Research limitations/implicationsThe paper shows the potential of using recently developed rural–urban typologies and tools such as geographical information systems for conducting geographical research on social enterprises. The findings also have implications for informing spatially sensitive policymaking on social enterprises.Originality/valueThe merging of a large national data set of social enterprises with geographical tools and data at subregional level contributes to the methodological advancement of the field of social enterprises, providing tools and frameworks for a nuanced and spatially sensitive analysis of these organisations.

Chang, Ching-Tzu; Cheng, Sheng-Fen

2024 Social Enterprise Journal

doi: 10.1108/sej-05-2023-0058

Taiwan promotes social enterprises with the Social Enterprise Action Plan and Social Innovation Action Plan, focusing on solving social problems and achieving sustainable development goals. This study aims to clarify the impetus for the above policies and determines whether the relevant policy tools can achieve the established policy goals.Design/methodology/approachThis study adopts the in-depth interview method and uses the “social impact investment framework” constructed by OEDC and Dunn’s definition of public policy stakeholders to select 22 respondents, who were divided into three groups.FindingsTaiwan’s decision-making in social enterprise policy is mainly driven by the pressure of youth unemployment and the 318-student movement. Intrinsic motivation strategies popularized the concept of social enterprise. Various strategies are used to break the limitations and diversify the organization, trigger more diverse social investments, broaden the goals of investment and complete the social enterprise ecosystem through these. Taiwan’s social enterprise policies are consistent with the global trend of “replacing subsidies with investment.”Originality/valueThis study shows that social enterprises generate mutual benefits between investors and social enterprises, that is, achieve free matching through external mechanisms. This study fills the gaps in Oliver’s “behavioral cube” framework of policy instruments. A “behavioral four-dimensional matrix” composed of nudge, shove, budge and reciprocity is proposed to complete the framework for social enterprise policy analysis tools.

Tóth, Janka; Repisky, Máté; Málovics, György

2024 Social Enterprise Journal

doi: 10.1108/sej-04-2023-0052

The aim of this paper is twofold. The main objective is to contribute to a more comprehensive understanding of the tensions that characterize social enterprises because of their dual (economic and social) commitments in a Hungarian context.Design/methodology/approachThe research was exploratory, as no structured inquiry has been carried out in a Hungarian context concerning the sources of tension social enterprises encounter because of their dual commitments. Therefore, a qualitative approach was chosen to achieve the exploratory goal. Semi-structured in-depth interviews were carried out with one expert and nine social entrepreneurs to map and understand these tensions in a Hungarian context.FindingsThe research provides a comprehensive three-level model of tensions in which concrete (observable) tensions are grouped into 4 main groups of tensions and 15 subgroups.Originality/valueThis study is original in two ways. First, besides the numerous tensions other researchers have already observed, this study revealed some that have not been empirically observed. Second, being the first research on tensions in a Hungarian context, to the best of the authors’ knowledge, the results increase understanding of social entrepreneurship in a Hungarian context based on the lived experiences of Hungarian social entrepreneurs.

Otache, Innocent; Akubo, Alewo Johnson; David, Bosede Beatrice

2024 Social Enterprise Journal

doi: 10.1108/sej-06-2023-0077

There is a paucity of studies on factors influencing social entrepreneurial behaviours or actions. Against this background, this study aims to explore factors and challenges affecting Enactus members’ social entrepreneurial actions in Nigeria.Design/methodology/approachThis study adopted a qualitative approach, and data were gathered through three focus group discussions involving 25 people (18 Enactus members, 4 faculty advisors and 3 business advisory board members). The study adopted a content analysis technique for data analysis.FindingsThe findings reveal that social mission orientation, desire to create social impact and social problems influence Enactus members’ social entrepreneurial actions. Other influencing factors include social entrepreneurial passion, moral obligation, social empathy and social support. In addition, the study finds that financial and time constraints affect Enactus members’ social entrepreneurial actions.Practical implicationsThe findings have implications for social entrepreneurs/enterprises, governments/policymakers and Enactus members.Originality/valueTo the best of the authors’ knowledge, this is the first qualitative study that provides insights into the factors influencing a group of people towards social entrepreneurial actions.

Moral, Iqbal Hossain; Rahman, Md. Mizanur; Rahman, Md. Shahinur; Chowdhury, Md. Solaiman; Rahaman, Md. Saidur

2024 Social Enterprise Journal

doi: 10.1108/sej-04-2023-0050

The bread and butter of marginal communities primarily rely on their artisanal work, to which the communities’ women have notable contributions despite facing numerous challenges. This study aims to unveil the challenges along with latent opportunities of different marginal women entrepreneurs in the rural areas of Bangladesh.Design/methodology/approachThis study used narrative inquiry to explore the real-life business phenomena of 15 marginal women entrepreneurs with more than 5 years of business experience living in 4 districts of Bangladesh. This approach was used to document participants’ responses through the storytelling of their daily business experiences.FindingsThe findings of this paper indicate that vulnerable living conditions, social negligence, availability of substitutes, frequent sickness, increasing price of raw materials, lack of entrepreneurial skills and lack of managerial skills are the major challenges of marginal women entrepreneurs. In contrast, minimum capital requirement, home-based business, traditional profession, retaining cultural heritage and lack of accountability are the main opportunities that motivate marginal women to continue their entrepreneurial activities.Research limitations/implicationsThe insight of this research can promote and sustain marginal women entrepreneurship and aid researchers, policymakers and businesses in improving the various entrepreneurial aspects of informal community entrepreneurs in developing countries. However, the study was limited to five marginal community entrepreneurs (Rishi, Kumor, Jele, Cobbler and Kamar) in Bangladesh. Therefore, conducting future research encompassing all marginalized communities is recommended, and empirical studies on this domain are highly encouraged.Social implicationsThe insight of this research can promote and sustain marginal women entrepreneurship and aid researchers, policymakers and businesses in improving the various entrepreneurial aspects of informal community entrepreneurs in developing countries.Originality/valueIn the authors’ knowledge, this is unique research on marginal women entrepreneurs in Bangladesh.

Eckerle, Christin; Finner, Ann-Sophie; Terzidis, Orestis

2024 Social Enterprise Journal

doi: 10.1108/sej-02-2024-0028

In this study, the authors dive into the assessment process of startups by impact investors. In particular, the purpose of this study is to investigate the preferences impact investors place on different social and environmental criteria. The authors build on social learning theory to understand the underlying rationale of the investors.Design/methodology/approachWith this research, the authors simplify the impact category system by conducting a systematic literature review. The authors then validate these criteria with a survey of 69 impact investors in Europe.FindingsThe results highlight the prioritization of quantifying impact and a discrepancy between essential and desirable impact categories. Due to the clear and significant results changing with the target market and startup stage focus, the authors assume a tendency of homophily of impact investors.Originality/valueWith this empirical study, the authors offer strategic implications for investors and startups as the authors decrease the complexity of impact categories while validating their significance in the impact assessment process.