The illusive nature of social enterprise at the base of the pyramid

Karen Panum (Confederation of Danish Industry, Copenhagen, Denmark)
Michael W. Hansen (Center for Business and Development Studies, Copenhagen Business School, Frederiksberg, Denmark)
Elder Davy (Center for Business and Development Studies, Copenhagen Business School, Copenhagen, Denmark)

Journal of Entrepreneurship in Emerging Economies

ISSN: 2053-4604

Publication date: 4 June 2018

Abstract

Purpose

Based on six case studies of self-proclaimed social enterprises (SEs) in Kenya, this paper aims to critically assess the “SE” concept in a base of the pyramid (BoP) context.

Design/methodology/approach

The paper draws on multiple case studies to challenge traditional notions of SE. Six SEs operating at the BoP in Kenya are analysed. Interviews are conducted with entrepreneurs from each enterprise, during which the enterprises’ business models are mapped and scrutinised.

Findings

Based on the six case studies, the paper argues that the SE concept is challenged in a BoP context: the six Kenyan SEs viewed social and commercial orientation as equally important and mutually supportive; viewed social orientation as a competitive advantage; and did not consider social objectives as harmonious. These findings corroborate key claims of the BoP literature, e.g. that it is not possible meaningfully to distinguish social and commercial missions at the BoP as they are intertwined; that any company succeeding at the BoP will have a social impact; and that the pursuit of some social objectives may undermine the achievement of other social objectives. The overall conclusion of the paper is that in BoP environments, the concept of SE becomes illusive.

Originality/value

This paper adds perspective to existing literature on SE at the BoP and provides empirical evidence that can help shape the understanding of social business activities in East Africa. The paper demonstrates that in BoP environments, the boundaries between social and commercial enterprise become illusive.

Keywords

Citation

Panum, K., Hansen, M. and Davy, E. (2018), "The illusive nature of social enterprise at the base of the pyramid", Journal of Entrepreneurship in Emerging Economies, Vol. 10 No. 2, pp. 249-276. https://doi.org/10.1108/JEEE-11-2016-0051

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Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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