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The purpose of this paper is twofold: to outline the historical and current contextual forces behind the development of the social enterprise movement in Israel and to analyze the different models identified by the research team along which social enterprises are formed at present.

The study was part of the International Comparative Social Enterprise Models (ICSEM) Project and the methodology used in the analysis of the models was the one used in the international comparison. It entailed the analysis of three to five case studies within each model, which were analyzed along three major dimensions: the economic basis of the enterprise, its social objectives and its governance structure.

The findings suggest that social enterprises in Israel develop along four major models, all within existing different incorporation systems; these are nonprofit organizations, privately owned business enterprises, cooperatives and public-sector frameworks. On the basis of the case studies analyzed, it was possible to identify specific characteristic configurations of the three dimensions (economic/social/governance) that were at the basis of the model and guided it.

The study is the first of its kind to present a broad picture of the developing social enterprise scene in Israel and as such can clearly inform and guide both researchers and policymakers in their future work on the development of the social enterprise phenomenon in the country.