Managing Social-Business Tensions: A Review and Research Agenda for Social Enterprise

In a world filled with poverty, environmental degradation, and moral injustice, social enterprises offer a ray of hope. These organizations seek to achieve social missions through business ventures. Yet social missions and business ventures are associated with divergent goals, values, norms, and identities. Attending to them simultaneously creates tensions, competing demands, and ethical dilemmas. Effectively understanding social enterprises therefore depends on insight into the nature and management of these tensions. While existing research recognizes tensions between social missions and business ventures, we lack any systematic analysis. Our paper addresses this issue. We first categorize the types of tensions that arise between social missions and business ventures, emphasizing their prevalence and variety. We then explore how four different organizational theories offer insight into these tensions, and we develop an agenda for future research. We end by arguing that a focus on social-business tensions not only expands insight into social enterprises, but also provides an opportunity for research on social enterprises to inform traditional organizational theories. Taken together, our analysis of tensions in social enterprises integrates and seeks to energize research on this expanding phenomenon.

Fundraising and investor relations in social enterprise: Marketing your way out of the pioneer gap in African off-grid renewable energy

Social enterprises apply the best of business for the pursuit of social or environmental mission while also generating revenues. Globally, nearly 1,3 billion people lack access to electricity, as well as another billion having access to only low quality and infrequent electricity. Off-grid renewable energy, like solar, will increasingly have a key role in the solution of the energy access issue. The pioneer gap in off-grid renewable energy consists of financing (or funding) gaps and capacity gaps, to do with both the early stage of the enterprises in question, as well as the early stage of the whole industry. The gaps are emphasised by specific characteristics of off-grid renewable energy business models and the requirements of operating in bottom-of-the-pyramid markets. The marketing perspective to fundraising is chosen to uncover the possible role enterprises themselves have in bridging the pioneer gap. The purpose of this thesis is to study how social enterprises operating in off-grid renewable energy in Africa utilise marketing activities in their investor relations in bridging the pioneer gap. This main research question is divided into the following sub-questions:  How does the pioneer gap affect fundraising for these enterprises?  How are the funding needs for these enterprises characterised?  How do these enterprises build trust in their investor relations? The theoretic framework is built on relationship marketing and investor relations, with an emphasis on creation of trust. The research is conducted as a thematical case study. Primary data is gathered via semi-structured interviews with six solar energy companies and two accelerators. According to the findings, the main components affecting trust-creation are diminished information asymmetry and perceived risk, mission alignment as well as a personal fit or relationship with the investor. Therefore, an enterprise can utilise e.g. the following marketing activities in their investor relations to bridge the pioneer gap: ensuring investor material, the enterprise story and presenting of them is clear, concise and complete to “package” the enterprise as an investment; taking investor needs and motivations into account as well as utilising existing investors as ambassadors.

Social-business tensions and their management in social enterprise: evidence from Finland.

This thesis aims to provide insight into the social-business tensions the social enterprises face in their operation and how they manage them. The social-business tensions are examined from four theoretical perspectives using triangulation approach. The theoretical lenses chosen are organizational identity, stakeholder theory, paradox theory and institutional theory. The theories aim to clarify, how the tensions are formed, how they appear and how they are managed in social enterprises. One viewpoint of this thesis is to examine the competence of these theories in explaining the social-business tensions in practise. The qualitative data was collected by interviewing persons from the management of two social enterprises. The empirical evidence of this thesis suggests that the appearing of social-business tensions varies between the social enterprises and they can be seen both as an advantage and as a challenge. Most of the social-business tensions arise from the enterprise’s multiple incoherent objectives, their stakeholders’ various demands and the differing understanding of the company’s central operation among the members of the organization. According to this thesis, the theories of organizational identity, stakeholder, paradox and institution are all able to provide unique insight into the identification and management of the social-business tensions. However, the paradox theory turned out to be the most abstract of the theories and thus being the farthest from the practise.

The Social Enterprise as an Alternative Work Option for Persons with Developmental Disabilities: A Case Study of Staff Perspectives at Common Ground Co-operative

Traditional employment options for persons with developmental disabilities are lacking. Employment options available for persons with developmental disabilities are reflective of the medical and social model perspectives of disability; with segregated and supported employment reinforcing the idea that persons with developmental disabilities are incapable and competitive employment missing the necessary accommodations for persons to be successful. This study examined social enterprises as an alternative employment option that can balance both medical and social model perspectives by accommodating for weaknesses or limitations and recognizing the strengths and capabilities of persons with developmental disabilities in the workplace. Moreover, this study is part of a broader case study which is examining the nature and impacts of a social enterprise, known as Common Ground Co-operative (CGC), which supports five social purpose businesses that are owned and operated by persons with developmental disabilities. This study is part of the Social Business and Marginalized Social Groups Community-University Research Alliance. To date, a case study has been written describing the nature and impacts of CGC and its related businesses from the perspectives of the Partners, board members, funders and staff (Owen, Readhead, Bishop, Hope & Campbell, in press & Readhead, 2012). The current study used a descriptive case study approach to provide a detailed account of the perceptions and opinions of CGC staff members who support each of the Partners in the five related businesses. Staff members were chosen for the focus of this study because of the integral role that they play in the successful outcomes of the persons they support. This study was conducted in two phases. In the first phase five staff members were interviewed. During this stage of interviews, several themes were presented which needed to be examined in further detail, specifically staff stress and burnout and duty of care for business Partners versus the promotion of their autonomy. A second phase of interviews was then conducted with one individual participant and a focus group of seven. During both interview phases, Staff participants described an employment model that creates a non-judgemental environment for the business Partners that promotes their strengths, accommodates for their limitations, provides educational opportunities and places the responsibility for the businesses on the persons with developmental disabilities cultivating equality and promoting independence. Staff described the nature of their role including risk factors for stress, the protective factors that buffer stress, and the challenges associated with balancing many role demands. Issues related to the replication of this social enterprise model are described.

Design of a performance assessment instrument for blind employees of a social enterprise.

Tesis (Maestría en Psicología Laboral y Organizacional) UANL, 2011.

The impact of institutional environment and cultural context in the four different approaches to social enterprise

This article analyzes the characteristics of four different social enterprise schools of though (social economy, earned-income school in developed countries, earned-income in emerging countries, and social innovation) and the influence of the contextual elements (cultural, political, economic and social) on their configuration. This article draws on the qualitative discussions of social enterprise in different regions of the world. This paper is intended to contribute to the field of social enterprise by broadening the understanding of the influence of environment and institutions on the emergence of social enterprise.

Understanding social enterprise country models: Spain

Purpose – The purpose of this paper is to describe the historical institutional context of Spain in the past 40 years and to analyze the influence of institutional factors in the current model of social enterprise existing in the country. Design/methodology/approach – This study draws on the theory of historical institutionalism, national-level empirical data and Kerlin conceptual framework (2013) that informs models of social enterprise. Findings – This paper describe some traits of Spain’s social enterprise that can be explained by the evolution of its institutional context in the past 40 years. It helps to validate, from a historical institutionalistic perspective, aspects of the Kerlin framework for social enterprise models. It also begins to show that the analysis of regional differences in the context should be taken into consideration when examining a country’s social enterprise space. Research limitations/implications – This discussion paper encourages academics to analyze regional differences in the emergence of social enterprise within a country. The main limitation of the paper is the lack of an “official” definition of social enterprise in Spain. Originality/value – This paper applies a valuable framework to a country with a unique political and economic history in the past 40 years. It contributes to enrich the research on the emergence and development of social enterprises in a variety of contexts and advances understanding of how regional differences inside a country influence the development of social enterprises.

Do women earn less even as social entrepreneurs? The gender pay gap among UK social enterprise directors

Based upon unique survey data collected using respondent driven sampling methods, we investigate whether there is a gender pay gap among social entrepreneurs in the UK. We find that women as social entrepreneurs earn 29% less than their male colleagues, above the average UK gender pay gap of 19%. We estimate the adjusted pay gap to be about 23% after controlling for a range of demographic, human capital and job characteristics, as well as personal preferences and values. These differences are hard to explain by discrimination since these CEOs set their own pay. Income may not be the only aim in an entrepreneurial career, so we also look at job satisfaction to proxy for non-monetary returns. We find female social entrepreneurs to be more satisfied with their job as a CEO of a social enterprise than their male counterparts. This result holds even when we control for the salary generated through the social enterprise. Our results extend research in labour economics on the gender pay gap as well as entrepreneurship research on women’s entrepreneurship to the novel context of social enterprise. It provides the first evidence for a “contented female social entrepreneur” paradox.

The challenges of a social enterprise with a broker model: The case of Plugged-in

The existing sources on the creation of new business are limited in providing assistance when it comes to specific challenges that the foundation team of an enterprise may face. Likewise, in the case of the social enterprise Plugged-in, there are key challenges with regard to the business model. In this work project, a benchmarking approach was chosen to address these challenges and to derive implications from the practices established by successful sample enterprises. Besides several best practices, potential approaches to solutions were identified and suggestions for further examination were given.

Empresas sociais em Portugal: que realidade?

Dissertação de mestrado em Economia Social

Business support networks for social businesses: a study of the Brazilian ecosystem

Negócios sociais, empresas autossuficientes com objetivos principalmente sociais estão a surgir e a mudar o cenário económico mundial. No Brasil, o campo de Empreendedorismo Social promete ajudar a resolver os vários problemas sociais do país, mas tal promessa depende do desenvolvimento de um ecossistema de suporte. No entanto, a pesquisa desenvolvida no tópico ainda é limitada, especialmente quando considerando pesquisa em contextos macro como estruturas de suporte ao negócio. O presente estudo explora o ecossistema de suporte aos negócios sociais no Brasil, oferecendo uma análise qualitativa preliminar da eficácia da rede de suporte existente para os negócios sociais, de acordo com as perceções de empreendedores sociais e prestadores de suporte. O estudo é desenvolvido baseando-se no modelo conceptual de Turrini et al. (2010) sobre os determinantes de eficácia de redes a fim de facilitar a captura de padrões. Desta forma, cada variável de eficácia de redes é desenvolvida no contexto da presente investigação e as principais conclusões relativas ao ecossistema de suporte para negócios sociais no Brasil são destacadas. Os resultados sugerem um rápido crescimento da disponibilidade de suporte para negócios sociais, mas indicam que estes serviços ainda são em número limitado e concentrados no Sudeste do país. Adicionalmente, os serviços de suporte são percecionados pelos empreendedores sociais como serviços de alta qualidade e embora se observe um sentimento generalizado de que a colaboração entre organizações de suporte tem sido importante para a construção do campo, os resultados indicam que um maior nível de interação e formalização entre prestadores de suporte levaria a maiores níveis de criação de sinergias e potenciaria a construção do ecossistema. Por último, é observado um sentimento generalizado de que o crescente nível de recursos financeiros, consciência pública e apoio do governo ao campo impactarão positivamente o desenvolvimento do ecossistema.

La empresa social en España y en Italia durante la crisis ¿un laboratorio de innovación económica y social?

En este artículo analizamos el desarrollo de empresa social en España e Italia en el marco de la crisis económica y social, en términos de difusión y marco jurídico. De esta manera, definimos los confines del “ecosistema” de la empresa social en los dos países e identificamos elementos comunes y especifidades. La hipótesis es que la empresa social representa una herramienta de generación de respuestas proactivas a la crisis, impulsando trayectorias de innovación económica y social, y contribuyendo a un modelo de desarrollo económica y socialmente sostenible. La innovación surge de la capacidad de las empresas sociales de generar respuestas innovativas a demandas emergentes, de su capacidad de crear al mismo tiempo valor social y económico, de satisfacer necesidades individuales y colectivas, de activar dinámicas de cambio de medio y largo plazo, de estimular dinámicas de emprendimiento, de empoderamiento y de valorización en el territorio. Sin embargo, el carácter innovador de la empresa social no surge simplemente de una empresarializacción del Tercer Sector tradicional, y mucho menos como consecuencia de la transferencia de servicios fundamentales del estado a asociaciones, cooperativas y empresas sociales, si con eso se persigue el simple objetivo de reducción de los gastos públicos. Al contrario, detrás de la retórica de la innovación social se puedan esconder proyectos de reducción de los gastos de servicios a través de la reducción de los salarios y de la cualidad de los servicios. El artículo, a partir de la comparación de la difusión del fenómeno y de las perspectivas de desarrollo en España y en Italia, termina con una reflexión crítica sobre las luces y sombras, los riesgos y las oportunidades, relacionados con la difusión de la empresa social, o sea, de la integración de la acción solidaria y la acción económica en prácticas que son al mismo tiempo empresariales y con finalidades sociales.