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Some Models of Social Entrepreneurship Roger Spear Chair Co-ops Research Unit & ICA RC 6yrs Founder member of EMES network Joint Coordinator of Third System.

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Presentation on theme: "Some Models of Social Entrepreneurship Roger Spear Chair Co-ops Research Unit & ICA RC 6yrs Founder member of EMES network Joint Coordinator of Third System."— Presentation transcript:

1 Some Models of Social Entrepreneurship Roger Spear Chair Co-ops Research Unit & ICA RC 6yrs Founder member of EMES network Joint Coordinator of Third System in Europe Project EMES Network Projects and Book See Social entrepreneurship projects EMES: Work Integration - PERSE Project EMES: Childcare project

2 Outline of Presentation Entrepreneurship fields of study New fields of entrepreneurship Social enterprise/entrepreneurship USA and Europe EMES European, and UK perspectives Some models of entrepreneurship from social enterprise and social economy Institutional context (entrepreneurship)

3 Entrepreneurship: fields of study Entrepreneurship Theory Methodological Issues Entrepreneurial Opportunity Recognition + Information Search Finance for Entrepreneurs (Venture Capital) Entrepreneurial Careers Types of Entrepreneurs Environments for Venture Creation and Development Venture Growth and Performance Organization Closure (survival/failure) Internationalization Corporate Venturing Family Firms Technology-Based Firms Franchising ref. Advances in Entrepreneurship 2000 Westhead & Wright

4 New fields of entrepreneurship The political entrepreneur –Schneider and Teske, Am.Pol.Sci.Rev 1992) The moral entrepreneur –Hunter and Fessenden, 1994 The civic entrepreneur –e.g. U Penn course The social entrepreneur –Numerous refs.

5 Differing perspectives on social entrepreneurship Social entrepreneurship as creating social enterprise “USA perspective” now developing in many parts of Europe “European perspective” linked to social economy traditions

6 Social enterprise “US perspective” Social purposes through commercial activity Venture philanthropy Third world NGOs Embracing business practices Unconcerned about business form

7 PCDO Framework (Austin et al) People Context Deal Opportunity

8 “US perspective” People –internal/external stakeholders: skills/expertise Context –diverse markets (incl philanthropic) Deals –Resources mobilising, legitimacy, rights Opportunities –opportunity structures for socio-econ returns –Ref. Austin, Stevenson, Wei-skillern, Informed by conventional entrep approaches

9 US Social Entrepreneurship Social entrepreneurship creates innovative solutions to immediate social problems and mobilizes the ideas, capacities, resources, and social arrangements required for sustainable social transformations. Social entrepreneurship focuses on solutions that are not only effective but also sustainable, and ideally, replicable in a variety of contexts around the world. Social entrepreneurs share characteristics and techniques with traditional business entrepreneurs, such as utilizing time-tested business theories and practices, and their focus on innovation. However their work and impact spans across the private, non-profit and governmental sectors. (Harvard University Website)

10 The concept of social enterprise as a bridge between traditional approaches ? Co-operatives Non-profit organisations NPO's transformed into social enterprises Production Oriented NPO's Advocacy Oriented NPO's

11 => social enterprise is both : Social enterprises are new organisations And existing organisations refashioned by new dynamics INSIDE THE THIRD SECTOR

12 The term social enterprise Different definitions - SEL, DTI, USA EMES – third sector organisations: with enterprise characteristics –(trading in the market or contracting, employing people – 25%/50% income) But with social goals –(participation, user involvement, community benefit).

13 Social enterprises in the UK 15,000 social enterprises in the UK. Total turnover £18bn Workforce of 775,000 people including 300,000 volunteers. –Ref. Small Business Service Survey 2005

14 What is social entrepreneurship in this European perspective? What models of entrepreneurship can we find leading to social enterprises? Individual vs collective dimensions? Institutions role? Civil society actions (advocacy vs enterprise: opportunity structures have changed – but elements of both?) Social movements as source of new social enterprise? NGOs (sponsoring entrepreneurship - contradictions? Smothering indigenous civil action?) Political dimensions: e.g. Worker buyouts“The Take”

15 [Theories of emergence of social economy] RESPONSE TO MARKET FAILURES RESPONSE TO STATE CRISES (e.g. Multi-ethnic inner cities, social exclusion) EXCESSIVE MARKET POWER, ASYMMETRIC INFORMATION AND OPPORTUNISTIC BEHAVIOUR TRUST THEORIES (RELATIONAL CONTRACTS), LOW TRANSACTION COSTS TERRITORIAL RELATIONS, SOCIAL CAPITAL, COMMUNITY SOLIDARITY AND CIVIL SOCIETY SOCIAL ORIGINS THEORY (good/services + political/social coord) HISTORICAL DYNAMIC APPROACH

16 Models of social entrepreneurship 2 studies Collective dimensions Religious dimension Civic action & social movement Institutional perspective

17 Initial ideas on social entrepreneurship Entrepreneurship problem? Niche growth Institutions as focus of entrepreneurship –Mondragon, CDAs –Institutional configurations compensate for entrepreneurial deficiencies Collective dimensions underplayed

18 a study of 6 co-operative organisations FT - small co-op merger VS - asian video services CS -EO buyout from public sector TR south american translation services LS - EO buyout public leisure services CC - closure LA childcare services

19 Findings of study entrepreneurship not “heroic individualistic” but collectivist: joint, leader + supporters, or team based; different model for social economy? circles of entrepreneurial activity, wider group of external stakeholders (sometimes distributed across public/private boundaries); in wider circle - social capital utilised, (subsequently reciprocated) rationale for institutional choice: mediated through professionals, advisers, or support organisations; (transitional dimension in all cases: involuntary ones from public to private)

20 Social Entrepreneurship: 17 case studies EMES Project : WISE 5 countries: Belgium, Denmark, Germany, Italy, UK three models of entrepreneurship predominated : –organisational entrepreneurship in 9 cases organisations leading/sponsoring; incl partnership –citizens entrepreneurship in 6 cases Groups of citizens (incl disadvantaged) –joint entrepreneurs in 2 cases (individual-led merger, 3 managers)

21 Institutional context 3 types of institutional contexts that shape entrepreneurship: –New legal forms within structured public frameworks (Italy social co-ops) –Self/labelling forms and networks - isomorphism –Ad hoc constructed contexts (with new types of social enterprise) Different levels of recognition, identity, public policy frameworks, support structures, professional advisers Institutionalisation and evolution: German case

22 Religious dimension? Mondragon: Father Arizmendiarrieta Irish CUs: Church support Bromley by Bow Godfathers/midwives?

23 Entrepreneurship: social movement perspective 19th C. Co-ops in Europe Co-ops/social economy elsewhere 70s WCs in UK Irish credit unions Carribean credit unions (from state sponsored nationalist populist movements to social/co-op movements)

24 Institutional context: informal/formal networks Civic action and social movements Institutions: more formal networks CDAs and LKOs (mainstreaming: issue of specialist advice) Mondragon bank CLP TU led EO bus companies in 80/90s Inst role of state: contracts/development Entrepreneurship at institutional level

25 Summary: themes of social entrepreneurship Collective dimensions Religion Institutions – Social movement – formal networks – legislation/policy – inst. entrepreneurship

26 Social entrepreneurship vs entrepreneurship? Is entrepreneurship more collective/organisational? (cf Cisco, Fairchild, Intel) Religious dimension? (post-weberian) Movement perspective? (ethical/ecological markets)

27 Questions?

28 Dimensions of Social Enterprise The EMES criteria are: Four factors have been applied to define the economic and entrepreneurial nature of the initiatives. Five factors have been selected for the social dimensions of the initiatives:

29 Dimensions of Social Enterprise Four factors have been applied to define the economic and entrepreneurial nature of the initiatives. a) A continuous activity producing goods and/or selling services b) A high degree of autonomy(vs dependency) c) A significant level of economic risk d) A minimum amount of paid work

30 Dimensions of Social Enterprise Five indicators for the social dimensions of the initiatives: i) An initiative launched by a group of citizens ii) A decision-making power not based on capital ownership iii) A participatory nature, which involves the persons affected by the activity iv) Limited profit distribution v) An explicit aim to benefit the community


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