Social Enterprise: The Research Challenge (or Reflections on 8 Paradoxes) Professor Ken Peattie & Dr Adrian Morley BRASS Research Centre

Recent SE Research Developments 2007 – Jeremy Taylor’s review of SE Research; 2007 SEC/ESRC Seminar Series: –Social Enterprise Dynamics And The Economy: –Social Enterprise In Public Services – Employee Owned Organisations & Professional Partnerships: –Social Enterprise In Public Services: –Impacts And Return Of Social Investment: ESRC/OTS £10.25 million Centre funding announced. Commission from the ESRC to produce a Research Monograph & Discussion Paper – launched today ! This presentation – some reflections from the process.

The Definitional Debate. The definitional debate is a feature of SE research and stems from a tendency to mistake typical or desired characteristics for defining characteristics, such as : Existing in complex multi-stakeholder environments; ‘not-for-profit’ or non-shareholder enriching; small and innovative; loose, democratic/participative governance and ownership structures; community based;

So What Does Define a Social Enterprise ? Simultaneously: Primarily trading goods and/or services in a market in terms of activities (Enterprise); A primary purpose beyond commercial outcomes related to trade-based stakeholders (ie beyond the generation of profit, growth or customer satisfaction) (Social). In line with the definitions used by organisations like the SEC and pro-SE governments such as UK & Canada & Pearce’s ‘3 Systems’ model; The definitional debate needs to move towards better understanding of SE sub-types;

The State of Research into Social Enterprise Paradox. There is a ‘paradoxical’ contrast between SE as a relatively under- developed field of knowledge and thought, and yet as an area of practice with ‘vast potential’ that is experiencing an ‘explosion’ in practitioner numbers (Alter, 2006)

The SE Research Tradition Paradox. Stems partly from the ‘Heroic Individualism’ of Entrepreneurship … …and the collectivism of the co-operative movement

The Innovation Paradox If Social Enterprises are as innovative as everyone says, how come they spend so little on R&D ?

The ‘Like a Business vs. Business-like’ Paradox. SE’s are celebrated as diverse, innovative and creative – yet subject to increasing pressures to conform to business norms in language and practice often to their discomfort.

The Competitiveness Paradox. Attributes that SEs think give them a competitive edge in public procurement (for example) can be a disadvantage in practice. SEs may be reluctant to use some potential sources of competitive advantage to their advantage.

The People Paradox. Many SEs are dedicated to providing employment and unlike conventional firms may seek out those employees that the business can help most, not the other way around Even the best intentioned work integration SE may struggle to provide good quality, stable and sustainable jobs due to episodic grant funding issues.

The ‘Who?’ Paradox. There is growing consensus about the ‘what?’ issues for the future of the SE research agenda, but there seems to be less certainty about where the scholars will come from to meet the growing demands for SE orientated research. Why is the importance of SEs as businesses not matched by interest in them amongst business schools and leading business journals ? Desa (2007), searched the seven top-ranked academic business and management journals from 1985 to 2006, and found no articles on social enterprise or social entrepreneurship.

The Transatlantic Paradox. UK Business Scholarship Culture closer to US models and traditions UK Social Enterprise Practice and Scholarship Culture closer to Continental models and traditions

Conclusions Its an incredibly exciting time for SE research: New funding opportunities; Growing policy emphasis; New-look Social Enterprise Journal; Post-RAE opportunities to engage with researchers new to the field; Opportunities for more comparative and quantitative studies; And some fascinating paradoxes to tackle !