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1 – 10 of over 1000Denis Suarsana and Jens Lowitzsch
As this article reports, in recent years most legislative activities focused on start-ups, with as many as 12 European Union (EU) Member States having introduced tax incentives…
Abstract
Purpose
As this article reports, in recent years most legislative activities focused on start-ups, with as many as 12 European Union (EU) Member States having introduced tax incentives for employee share ownership (ESO) in this type of small and middle-sized enterprise (SME). But incentivising ESO in SMEs should be extended to all SMEs, the engine of the European economy, including those from the social economy, having shown their crucial function for the resilience of our societies during the COVID-19 pandemic.
Design/methodology/approach
Against the background of this recent and very dynamic development this article, it provides an overview of the start-up business segment in comparison to other types of companies, particularly focusing on differences with the SME sector; examines the legal regulations that hinder a broader adoption of ESO in European start-ups; presents best-practice examples to demonstrate the favourable conditions already established in some EU Member States and discussed whether these reforms and best practice examples could be extended and – as is already the case in some countries – applied to the whole SME population including social economy enterprises.
Findings
Since the European Commission launched the 2011 Social Business Initiative (SBI) followed by the 2016 Start-up and Scale-up initiative, many actions to support social enterprises in view of their potential to address societal challenges and contribute to sustainable economic growth have followed. Most recently, the 2021 Social Economy Action Plan of the European Commission gave important impulses. The potential of employee buyouts offering a continuation perspective to SMEs owners looking for successors was highlighted in the 2022 EC report “Transition Pathway for Proximity and Social Economy,” calling for the implementation of Employee Stock Ownership Plans (ESOPs).
Originality/value
The situation of employee share ownership in start-ups has some parallels with that in traditional SMEs, but in many respects, they differ fundamentally. Although, on the other hand, social enterprises may also have to compete with large firms for qualified staff and face challenges when growing or scaling their activities, the reason why ESO in this enterprise segment is not widespread in the EU is altogether different. In the absence of a prescribed legal form of incorporation, social enterprises operate in various forms (be it for profit or non-profit), e.g. cooperatives, closely held limited liability companies, mutuals, associations, voluntary organisations or foundations. Therefore, this article looks into the extension of the incentives for ESO to social enterprises inasmuch as they are organised in legal forms allowing for share ownership, above all in the form of limited liability companies.
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Stella Franciska Imanuella, Aida Idris and Nurliana Kamaruddin
This study aims to explore how social entrepreneurship initiatives and rural development address various socio-economic challenges in rural communities following Indonesia’s…
Abstract
Purpose
This study aims to explore how social entrepreneurship initiatives and rural development address various socio-economic challenges in rural communities following Indonesia’s independence in 1945.
Design/methodology/approach
Adopting a pragmatic research philosophy, this study uses a historical review and thematic analysis, extending from the PRISMA method to analyse articles and reports concerning social entrepreneurship initiatives and rural development in post-independence Indonesia.
Findings
This study reveals that social entrepreneurship initiatives and rural development programs have advanced hand in hand since Indonesia's independence. Social entrepreneurship initiatives and rural development mutually reinforce each other, with social entrepreneurship prominently featured in many rural development projects, promoting socioeconomic changes in rural communities.
Research limitations/implications
While this review has covered the available literature in Indonesia's context and extends the social entrepreneurship concept by showcasing its impact in rural Indonesia, further theoretical models integrating social entrepreneurship and rural development are needed, especially with local or regional context and community-driven approaches to increase the research potential in the field.
Practical implications
This study is beneficial for policymakers in the field to consider the findings of this review on the strong association that social entrepreneurship has had with rural development in Indonesia.
Social implications
This study highlights the importance of local values and community participation in social entrepreneurship initiatives for rural development. It is also highlighted that social entrepreneurship initiatives enable rural women to participate in entrepreneurial activities.
Originality/value
This study concludes that prior studies consistently demonstrate a strong association between social entrepreneurship initiatives and rural development, with government policies and programs increasingly leveraging social entrepreneurial approaches to tackle rural challenges. Additionally, rural development strategies in Indonesia align with three strategic pillars established by the government’s entrepreneurship programs. These pillars, integral to rural development through the social entrepreneurship approach, are critical for the formulation and future action plans adjustable to the current trends, issues and circumstances.
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Michal Müller, Veronika Vaseková, Ondřej Kročil and David Kosina
A qualitative approach based on grounded theory was utilized, with data collected through 26 semi-structured interviews with social entrepreneurs. Alas’s Triangular Model provided…
Abstract
Purpose
A qualitative approach based on grounded theory was utilized, with data collected through 26 semi-structured interviews with social entrepreneurs. Alas’s Triangular Model provided the framework for data analysis and interpretation.
Design/methodology/approach
This study explores how Hong Kong social enterprises approached crisis and change management during the COVID-19 pandemic, examining their resilience-building strategies.
Findings
The pandemic triggered an existential crisis for many social enterprises, causing severe revenue losses. However, strong leadership and cultures based on social mission enabled resilience. Enterprises demonstrated agility by rapidly transitioning operations online and establishing partnerships. Technology adaptation and social innovation were pivotal to sustaining impact.
Research limitations/implications
As the sample comprises enterprises that survived the pandemic, insights into failed enterprises are lacking. Comparative analysis could illuminate differences in crisis response between successful and unsuccessful cases.
Practical implications
The study’s practical implications suggest that social enterprises should focus on developing flexible crisis management plans, cultivating purposeful leadership, embracing digital transformation, strengthening collaborative networks and prioritizing organizational learning to effectively navigate crises while staying true to their social missions.
Social implications
Findings demonstrate how shared values and cultures grounded in purpose can anchor organizations amidst upheaval, fostering resilience. This underscores the role of social enterprises in modeling responsiveness to societal needs.
Originality/value
While research has examined social enterprises’ vulnerability in crises, investigation into their crisis management practices is limited. This study enriches understanding of how social enterprises effectively navigate turbulence.
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Xiying Zhang, Dirk Pieter van Donk, Chengyong Xiao and Madeleine Pullman
This study aims to develop an in-depth understanding of how supplier selection helps social enterprises achieve their social missions while maintaining commercial viability.
Abstract
Purpose
This study aims to develop an in-depth understanding of how supplier selection helps social enterprises achieve their social missions while maintaining commercial viability.
Design/methodology/approach
The paper applies a multiple-case design to study the supplier selection processes of 15 Dutch social enterprises.
Findings
Social enterprises tend to build supply relationships through existing networks and evaluate suppliers based on value alignment, relationship commitment, resource complementarity, and cost. Depending on the possibility of social value creation in supplier selection, the importance of these criteria varies across different social enterprise models and between key and non-key suppliers. Moreover, suppliers’ long-term relationship commitment can help reconcile tensions between the social and commercial logic of a social enterprise and facilitate impact creation.
Research limitations/implications
Data collection is limited to the perspectives of buyers – the social enterprises. Future research could collect supplier-side data to explore how they engage with social enterprises during the selection process.
Practical implications
Managers of social enterprises can use our research findings as guidance for selecting the most suitable suppliers, while organizations that want to collaborate with social enterprises should actively build network ties to be identified.
Originality/value
We contribute to the cross-sector collaboration literature by showing the underlying reasons for the preference for network reinforcing and indirect networking in supplier identification. We contribute to the social impact supply chain literature by revealing the critical role of supplier selection in shaping collaboration outcomes.
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Eugine Tafadzwa Maziriri, Brighton Nyagadza and Tafadzwa Clementine Maramura
The purpose of this study was to investigate the detrimental consequences of participating in stokvels among women entrepreneurs within the South African township economy.
Abstract
Purpose
The purpose of this study was to investigate the detrimental consequences of participating in stokvels among women entrepreneurs within the South African township economy.
Design/methodology/approach
The research used the Gioia methodology, involving the implementation of a qualitative inquiry with an inductive approach. Semi-structured interviews served as the primary method for data collection. The study had a sample comprising 20 women entrepreneurs located in Johannesburg, South Africa.
Findings
Narratives on the detrimental consequences of participating in stokvels among women entrepreneurs within the South African township economy included fraudsters, misunderstanding and dishonesty among stokvel partners, year-end robbery and theft, stokvels being dominated by men, operating outside of formal regulatory frameworks, exclusion and limited funding.
Research limitations/implications
Sample size challenges feature as a notable limitation, including the research being conducted in only one province of South Africa. Caution should be exercised when seeking to generalize the findings in other contexts.
Originality/value
While there is an array of literature on the impact of stokvels on entrepreneurship, there are deficiencies in studies that have looked at the detrimental consequences of stokvels on women entrepreneurs. As a result, the goal of this research is to add to the present corpus of African entrepreneurship literature, specifically in the context of South Africa.
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Sára Forgács-Fábián, Sándor Takács and Amitabh Anand
By focussing on the anticipated emotional reactions of volunteers and drawing on theories of motivation and identity, this study investigates how volunteers react to different…
Abstract
Purpose
By focussing on the anticipated emotional reactions of volunteers and drawing on theories of motivation and identity, this study investigates how volunteers react to different options of the entrepreneurial model of Amigos for Children Foundation (ACF). The paper proposes a hypothetical model for volunteer’s emotional reactions to potential business model changes. We suggest the relative importance of intrinsic motivational factors, professional identity and attitudes towards business organisations as mediating variables. ACF works exclusively with university students as volunteers, so their specific characteristics may limit some of the conclusions and propositions of this qualitative research, but public policy consequences of supporting similar entrepreneurial transitions can be generally relevant.
Design/methodology/approach
Based on the qualitative analysis of semi-structured interviews with volunteers of ACF, a Hungarian non-profit organisation, we explore the challenges of transitioning into a social enterprise.
Findings
Previous research showed controversial results about the impact of pay on the motivations of volunteers. For a non-profit organisation that would like to utilise the competencies of its volunteers, introducing a market-based service may mean additional financial resources and the potential loss of human resources. Understanding the moderating factors of volunteers' reactions might help build better theories for managing the non-profit-social enterprise transition and designing public policies to support scaling up the impact of successful social purpose organisations.
Originality/value
For practitioners, the research underlines the importance of participatory mechanisms in volunteer management. By managing transitions better, non-profit organisations can expand their social impact by acquiring more financial resources through market-based activities closely related to their original activities and keeping their volunteers. The study elucidates the relevance of the crowding-out effect and indicates some hypothetical moderating variables influencing its potential degree.
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Social value creation (SVC) is the primary emphasis for unifying the various issues in contemporary social entrepreneurship (SE) literature and practice since it highlights the…
Abstract
Purpose
Social value creation (SVC) is the primary emphasis for unifying the various issues in contemporary social entrepreneurship (SE) literature and practice since it highlights the fundamental problem of sustainability in SE business. Accordingly, SVC as an outcome of SE represents the primary drive of social entrepreneurs (SEs). However, SEs encounter multi-dimensional challenges as they work to build their SE businesses and create social value. In the current context of digitally transforming entrepreneurship scenario, this study investigates the role of SE compassion and digital learning orientation (DLO) for SVC ability of SEs.
Design/methodology/approach
The study utilized a quantitative survey approach for primary data collection from social entrepreneurs in Saudi Arabia. A total of 158 valid replies from social entrepreneurs were obtained for the study. Using SmartPLS (3.0), partial least square structural equation modeling was used to analyze the data.
Findings
The results validated a model of SVC in which the SE compassion and DLO positively impact the SVC ability in SEs. However, the impact of DLO in moderating the SE compassion - SVC relationship in SEs was not proven.
Practical implications
The study established the role of SE compassion in explaining the distinctive SVC ability in SEs. Meanwhile, given the expanding necessity for SEs to leverage digital technologies for SE missions, the study provides implications for nurturing positive outcomes in terms of SE compassion and DLO outcomes among SEs. This organized knowledge can help entrepreneurs, educators and policymakers better incorporate these concerns in SE education, and social enterprises and entrepreneurs’ developmental initiatives.
Originality/value
This work is pioneering in that it conceptualizes and tests a theoretical framework that links SE compassion, DLO, and SVC in SEs. Meanwhile, the study is the first to operationalize the DLO in entrepreneurs. The study thus generates fresh insights about SVC in SE amid the digitally transforming entrepreneurship scenario.
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Philipp Kruse, Eleanor Meda Chipeta and Robert Venter
The creation of positive social change (PSC) is considered the primary success criterion when evaluating social enterprise performance. However, despite a proliferation of…
Abstract
Purpose
The creation of positive social change (PSC) is considered the primary success criterion when evaluating social enterprise performance. However, despite a proliferation of PSC-measurements, their empirical validity and applicability in emerging economies remain largely unclear. The quantitative study examines the validity of the PSC-measurement approaches proposed by Bloom and Smith (2010; Bloom and Smith approach [BSA]) and Weaver (2020b; Weaver approach [WA]) in South Africa.
Design/methodology/approach
Investigating a representative sample of 347 social entrepreneurs from Gauteng and Limpopo provinces, the authors use questionnaire data to explore the factorial, convergent and discriminant validity of both PSC-measurement approaches. Statistically, this is done by applying factorial and correlation analyses.
Findings
The results yield acknowledgeable differences. BSA has a high factorial and convergent validity, while its discriminant validity remains doubtful. For WA, problems concerning factorial validity occur.
Research limitations/implications
Despite limited generalizability, the authors provide a first guideline for scholars regarding the empirical validity of BSA and WA outside the context of developed economies.
Originality/value
The current study sheds light on the validity of two PSC-measurement approaches in an emerging economy context. This way, the authors contribute to the field by addressing the scarcity of empirical research and the restricted scope of developed economies regarding PSC-measurement.
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Xiuping Li and Ye Yang
Coordinating low-carbonization and digitalization is a practical implementation pathway to achieve high-quality economic development. Regions are under great emission reduction…
Abstract
Purpose
Coordinating low-carbonization and digitalization is a practical implementation pathway to achieve high-quality economic development. Regions are under great emission reduction pressure to achieve low-carbon development. However, why and how regional emission reduction pressure influences enterprise digital transformation is lacking in the literature. This study empirically tests the impact of emission reduction pressure on enterprise digital transformation and its mechanism.
Design/methodology/approach
This article takes the data of non-financial listed companies from 2011 to 2020 as a sample. The digital transformation index is measured by entropy value method. The bidirectional fixed effect model was used to test the hypothesis.
Findings
The research results show that emission reduction pressure forces enterprise digital transformation. The mechanism lies in that emission reduction pressure improves digital transformation by promoting enterprise innovation, and digital economy moderates the nexus between emission reduction pressure and digital transformation. Furthermore, the effect of emission reduction pressure on digital transformation is more significant for non-state-owned, mature and high-tech enterprises.
Originality/value
This paper discusses the mediating role of enterprise innovation between carbon emission reduction pressure and enterprise digital transformation, as well as the moderating role of digital economy. The research expands the body of knowledge about dual carbon targets, digitization and technological innovation. The author’s findings help update the impact of regional digital economy development on enterprise digital transformation. It also provides theoretical guidance for the realization of digital transformation by enterprise innovation.
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Linda Drupsteen and Erzsi Meerstra-de Haan
Social enterprises have proven to play a vital role in the transitions towards inclusive labour markets and sustainable economies. Yet, they often struggle to flourish within…
Abstract
Purpose
Social enterprises have proven to play a vital role in the transitions towards inclusive labour markets and sustainable economies. Yet, they often struggle to flourish within traditional economic systems due to the dual mission of pursuing social and commercial goals, leading to inherent tensions for social entrepreneurs. This study aims to explore tensions within work integration social enterprises (WISEs) arising from their dual mission and engagement with multiple stakeholders.
Design/methodology/approach
Interviews with representatives from ten Dutch WISEs were conducted to understand their day-to-day challenges. The typology by Smith and Lewis (2011), focusing on learning, belonging, organising and performing tensions, was used for data analysis.
Findings
The study reveals tensions between social impact and commercial viability, with organisational challenges being predominant. Also, there is an observed temporal pattern in tension prominence: early stages emphasise belonging, organising and performing tensions, while learning tensions become more prominent as enterprises mature.
Originality/value
This study offers insights into tensions within WISEs, highlighting the complexity of managing multiple identities in a multi-stakeholder context. By drawing on practical experiences, it contributes nuanced understanding to existing literature.
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