Interaction and Interrelation in Social Enterprise Between Entrepreneurship and Social Issues

Authors

  • Chang-Lin Yang Fu Jen Catholic University Taiwan
  • Kai-Ping Huang Fu Jen Catholic University Taiwan
  • Chanikarn Tosompark Assumption University Thailand
  • Piyanan Suwanmana Assumption University Thailand
  • Wen-Bin Chuang National Chi-Nan University Taiwan

DOI:

https://doi.org/10.24002/kinerja.v26i2.5667

Keywords:

social enterprise, social issues, social entrepreneurship

Abstract

Social enterprises have gained attention in recent decades. Many universities, private institutions, and government agencies promote social enterprises to solve social problems and create social value. Social entrepreneurship can be materialized in two ways: one from social issues to entrepreneurship and the other from entrepreneurship to social issues. The process from social issues to entrepreneurship is mainly concerned with assisting individuals, disadvantaged groups, or communities in addressing social issues in relation to establishing social enterprises. The process from entrepreneurship to social issues leads existing enterprises or entrepreneurs to explore social issues that may reveal economic opportunities and create social enterprises. This study focuses on these two types of social entrepreneurship and attempts to determine differences between the entrepreneurship and business model, characteristics and entrepreneurial spirits, and social impact. This study employs comprehensive thinking, collation, and analysis of different management patterns and content patterns of social enterprises to understand the different entrepreneurial styles. This study found that social enterprises created from social issues to entrepreneurship were more concerned with other people's problems. Their funding appeared less reliant on earning and repayment. The resources were more diverse. Such social enterprises might focus their care on people or communities they missioned to help and not practice profit or surplus distribution to shareholders. On the contrary, social enterprises from entrepreneurship to social issues were inspired by their own issues. A large part of such social enterprises' funding might be from earnings or repayment. Such social enterprises might involve fewer volunteers, make less use of free services, focus on exchanges of products or services for repayment, and distribute profit or surplus to shareholders.

References

Alter, S.K., 2004. Social enterprise typology. Virtue Ventures LLC. [online] Available at http://www.4lenses.org/setypology/print [Accessed 31 December 2015].

Alter, S.K., 2008. Social enterprise models and their mission and money relationships. In A. Nicholls (Ed.), Social Entrepreneurship: New models change (pp.205-232). New York: Oxford University Press.

Austin, J.E., Stevenson, H.H., and Wei-Skillern, J., 2006. Social and commercial entrepreneurship: Same, different, or both? Entrepreneurship Theory and Practice, 30(1), pp.1-22.

Besley, T., and Ghatak, M., 2017. Profit with purpose? A theory of social enterprise. American Economic Journal: Economic Policy, 9(3), pp.19–58.

British Council., 2020. The state of social enterprise in Thailand. [online] Available at https://www.britishcouncil.org/sites/default/files/state_of_social_enterprise_in_thailand_2020_final_web.pdf [Accessed 29 June 2022].

Brooks, A.C., 2009. Social entrepreneurship: A modern approach to social venture creation, Upper Saddle River: Person International Edition.

Bruneel, J., Clarysse, B., Staessens, M., and Weemaes, S., 2020. Breaking with the past: The need for innovation in the governance of nonprofit social enterprises. Academy of Management Perspectives, 34(2), pp.209-225.

Cornforth, C., 2014. Understanding and combating mission drift in social enterprises. Social Enterprise Journal, 10(1), pp.3–20.

Dacin, P.A., Dacin, M.T., and Matear, M., 2010. Social entrepreneurship: Why we don't need a new theory and how we move forward from here. Academy of Management Perspectives, 24(3), pp.37–57.

Dacin, M.T., Darin, P.A., and Tracey, P., 2011. Social entrepreneurship: A critique and future directions. Organization Science, 22(5), pp.1203-1213.

Davidsson, P., 1989. Entrepreneurship – And after? A study of growth willingness in small firms. Journal of Business Venturing, 4(3), pp.211–226.

Dees, J.G., 2012. A tale of two cultures: Charity, problem solving, and the future of social entrepreneurship. Journal of Business Ethics, 111(3), pp.321–334.

Ebrahim, A., Battilana, J., and Mair, J., 2014. The governance of social enterprises: Mission drift and accountability challenges in hybrid organizations. Research in Organizational Behavior, 34, pp.81–100.

European Commission., 2015. A map of social enterprises and their eco-systems in Europe. [online] Available at https://euricse.eu/wp-content/uploads/2015/11/Synthesis-report-FINAL.pdf [Accessed 29 June 2022].

Fazzari, S.M., Hubbard, R.G., and Petersen, B.C., 1988. Financing constraints and corporate investment. Brookings Papers on Economic Activity, 1, pp.141–195.

Freel, M.S., and Robson, P.J.A., 2004. Small firm innovation, growth and performance. International Small Business Journal, 22(6), pp.561–575.

Galaskiewicz, J., Bielefeld, W., and Dowell, M., 2006. Network and organizational growth: A study of community based nonprofits. Administrative Science Quarterly, 51(3), pp.337-380.

Grassl, W., 2012. Business models of social enterprise: A design approach to hybridity. Journal of Entrepreneurship Perspectives, 1(1), pp.37-60.

Grimes, M.G., McMullen, J.S., Vogus, T.J., and Miller, T.L., 2013. Studying the origins of social entrepreneurship: Compassion and the role of embedded agency. Academy of Management Review, 38(3), pp.460–463.

Haugh, H., and Tracey. P., 2004. The role of social enterprise in regional development. Social Enterprise and Regional Development Conference, Cambridge-MIT Institute, University of Cambridge, Cambridge, United Kingdom.

Kulshrestha, R., Sahay, A., and Sengupta, S., 2022. Constituents and drivers of mission engagement for social enterprise sustainability: A systematic review. Journal of Entrepreneurship, 31(1), pp.90-120.

Leung S., Mo, P., Ling, H., Chandra, Y., and Ho. S.S., 2019. Enhancing the competitiveness and sustainability of social enterprises in Hong Kong: A three-dimensional analysis. China Journal of Accounting Research, 12(2), pp.157-176.

London, M., 2008. Dual roles for corporate social responsibility and social entrepreneurship. Organizational Dynamics, 37(4), pp.313-326.

Lumpkin, G.T., and Dess, G.G., 1996. Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), pp.135–172.

Mair, J., and Schoen, O., 2007. Successful social entrepreneurial business models in the context of developing economies. International Journal of Emerging Markets, 1(2), pp.54-68.

Mateev, M., and Anastasov, Y., 2010. Determinants of small and medium sized fast growing enterprises in central and eastern Europe: A panel data analysis. Financial Theory and Practice, 34(3), pp.269–295.

Miller, T.L., and Wesley, C.L., 2010. Assessing mission and resources for social change: An organizational identity perspective on social venture capitalists' decision criteria. Entrepreneurship Theory and Practice, 34(4), pp.705–733.

Muthaih, K., and Venkatesh, S., 2012. A study on the barriers affecting the growth of small and medium enterprises in India. International Journal of Research in Computer Application Management, 2(1), pp.77–81.

Nga, J.K.H., and Shamuganathan, G., 2010. The influence of personality traits and demographic factors on social entrepreneurship start up intentions. Journal of Business Ethics, 95(2), pp.259–282.

Ometto, M.P., Gegenhuber, T., Winter, J., and Greenwood, R., 2019. From balancing missions to mission drift: The role of the institutional context, spaces, and compartmentalization in the scaling of social enterprises. Business & Society, 58(5), pp.1003–1046.

Pajarinen, M., Rouvinen, P., and Ylä-Anttila, P., 2006. Growth-orientation of new entrepreneurs in Finland. Helsinki: ETLA, The Research Institute of the Finnish Economy. (Keskusteluaiheita, Discussion Papers, ISSN 0781-6847; No. 1052).

Peredo, A.M., and Chrisman, J.J., 2006. Toward a theory of community-based enterprise. Academy of Management Review, 31(2), pp.309-328.

Peredo, A.M., and Mclean, M., 2006. Social entrepreneurship: A critical review of the concept. Journal of World Business, 41(1), pp.56-65.

Pless, N.M., 2012. Social entrepreneurship in theory and practice—An introduction. Journal of Business Ethics, 111(3), pp.317–320.

Ridley-Duff, R., and Bull, M., 2011. Understanding social enterprise: Theory & practice. Thousand Oaks: SAGE Publications Inc.

Santos, F.M., 2012. A positive theory of social entrepreneurship. Journal of Business Ethics, 111(3), pp.335–351.

Schumpeter, J.A., 1934. The theory of economic development. Cambridge: Harvard University Press.

Shaw, E., and Carter, S., 2007. Social entrepreneurship: Theoretical antecedents and empirical analysis of the entrepreneurial processes and outcomes. Journal of Small Business and Economic Development, 14(13), pp.418-434.

Smith, W.K., Gonin, M., and Besharov, M.L., 2013. Managing social-business tensions: A review and research agenda for social enterprise. Business Ethics Quarterly, 23(3), pp.407–442.

Stephan, U., Uhlaner, L.M., and Stride, C., 2015. Institutions and social entrepreneurship: The role of institutional voids, institutional support, and institutional configurations. Journal of International Business Studies, 46(3), pp.308–331.

Sud, M., VanSandt, C.V., and Baugous, A.M., 2009. Social entrepreneurship: The role of institutions. Journal of Business Ethics, 85, pp.201–216.

Thompson, J., Alvy, G., and Lees, A., 2000. Social entrepreneurship - A new look at the people and potential. Management Decision, 38(5), pp.328-338.

Wu, Y.-J., 2020. Social enterprise in Taiwan: Economic and social Welfare Transition. In K. Briar-Lawson, P. Miesing and B.M. Ramos (Eds.), Social entrepreneurship and enterprises in economic and social development (pp. 260-275). New York: Oxford University Press.

Young, D.R., 2001. Organizational identity in nonprofit organizations: Strategic and structural implications. Nonprofit Management & Leadership, 12(2), pp.139-157.

Zahra, S.A., Gedajlovic, E., Neubaum, D.O., and Shulman, J.M., 2009. A typology of social entrepreneurs: Motives, search process and ethical challenges, Journal of Business Venturing, 24(5), pp.519-532.

Published

2022-09-20

Issue

Section

Articles