This article explores the extent to which income inequality and income mobility—both considered indicators of economic inequality and conditions of formal regulatory institutions —facilitate or constrain the emergence of social entrepreneurship. Using 77,983 individual-level responses obtained from the Global Entrepreneurship Monitor survey of 26 countries, and supplementing with country-level data obtained from the Global Competitiveness Report of the World Economic Forum, our results from multilevel analyses demonstrate that country-level income inequality increases the likelihood of individual-level engagement in social entrepreneurship, while (...) income mobility decreases this likelihood. Further, income mobility negatively moderates the influence of income inequality on social entrepreneurship, such that the condition of low income mobility and high income inequality is a stronger predictor of social entrepreneurship. We discuss implications and limitations of our study, and we suggest avenues for future research. (shrink)

This paper explores how fair trade social enterprises manage paradoxes in stakeholder-oriented governance models. We use narrative accounts from board members, at governance events and board documents to report an exploratory study of paradoxes in three FTSEs which are partly farmer-owned. Having synthesized the key social enterprise governance literature and framed it alongside the broader paradox theory, we used narratives to explore how tensions are articulated, how they can be applied within an adapted paradox framework, and how governance actors seek (...) to mitigate paradoxes. The paper contributes to current debates in social enterprise scholarship concerning hybridity :455–476, 2010; in Institutional logics in action, Part B, 2012), hybrid organizing :397–441, 2014) and operational tensions :407–442, 2013) by illustrating empirically how the central social/enterprise paradox manifests in FTSEs governance arrangements. We build on the paradox categories proposed by Lüscher and Lewis :221–240, 2008) and adapted in Smith et al. :407–442, 2013) by developing a recursive model of legitimacy-seeking governance processes, conceptualizing how boards seek to mitigate, but not necessarily resolve, paradoxes. (shrink)

This editorial to the special issue addresses the often overlooked question of the ethical nature of social enterprises. The emerging social entrepreneurship literature has previously been dominated by enthusiasts who fail to critique the social enterprise, focusing instead on its distinction from economic entrepreneurship and potential in solving social problems. In this respect, we have found through the work presented herein that the relation between social entrepreneurship and ethics needs to be problematized. Further, we find that a range of conceptual (...) lenses and methodological approaches is valuable as the social entrepreneurship field matures. (shrink)

This paper explores an empirical puzzle, namely, how inter-organizational relationships can be sustained between organizations that draw upon distinctive—and potentially conflicting—institutional logics under conditions of power asymmetry. This research analyses cases of these relationships and suggests some key conditions underlying them. Examining relationships between ‘Fair Trade’ organizations and corporate retailers, a series of contingent factors behind the dynamic persistence of such relationships are proposed, namely: the presence of pre-existing ‘hybrid logics’; the use of boundary-spanning discourses; joint tolerance of conflict; and (...) co-creation of common rules. These four elements are supported by a fifth mediating factor, i.e. the presence and use of a Fair Trade certification system in the collaboration. The latter appears as a central vehicle facilitating cross-logic relationships—it can be seen as a ‘boundary object’ embodying a series of narratives and discourses that are open to multiple interpretations corresponding to the dominant institutional logics of each partner organization. (shrink)

Entrepreneurship is increasingly considered to be integral to development; however, social and cultural norms impact on the extent to which women in developing countries engage with, and accrue the benefits of, entrepreneurial activity. Using data collected from 49 members of a rural social enterprise in North India, we examine the relationships between social entrepreneurship, empowerment and social change. Innovative business processes that facilitated women’s economic activity and at the same time complied with local social and cultural norms that constrain their (...) agency contributed to changing the social order itself. We frame emancipatory social entrepreneurship as processes that empower women and contribute to changing the social order in which women are embedded. (shrink)

This study explores social enterprises’ strategies for addressing mission drift. Relying on an inductive comparative case study of two Italian social enterprises, we show how stakeholder engagement combined with social accounting can successfully support a social venture to re-balance its positioning between wealth generation and social value creation. Indeed, stakeholder engagement helps the internal actors of a social enterprise to rationalize and embody pro-social values previously abandoned, while social accounting reinforces this embodiment process by showing the reintroduced social commitment of (...) the social enterprise to external audiences. Conversely, strategies focused only on social accounting and without significant engagement of external stakeholders prove to be unsuccessful in counterbalancing mission drift because they fail to activate the necessary process of internal re-introduction and operationalization of pro-social values and objectives. (shrink)

This paper questions the taken-for-granted moral portrayal depicted in the extant literature and popular media of the devoted social entrepreneurial hero with a priori good ethical and moral credentials. We confront this somewhat ‘idealistic’ and biased portrayal with insights from unique large-scale data from the Global Entrepreneurship Monitor 2009 survey on social entrepreneurship covering Belgium and The Netherlands. Binary and multinomial logistic regressions indicate that the intention and dominance of perceived social value creation over economic value creation is indeed what (...) makes social entrepreneurs unique. In contrast to the extant literature, however, our empirical investigation points at a reluctant attitude of social entrepreneurs toward entrepreneurship in terms of confidence in their skills to start and manage a business, their perception of entrepreneurship as a desirable career choice and their involvement in their activities. While the extant literature points at a strong entrepreneurial orientation as a source of ethical issues, the main contribution of this study lies in the reverse observation: ethical issues are also likely to emanate from a frail entrepreneurial profile. We formulate empirically grounded propositions that may serve as a basis for theory-building and testing purposes. (shrink)

Social entrepreneurship is not just an objective description of a phenomenon; it also carries a positive normative connotation. However, the academic discourse barely reflects social entrepreneurship’s inherent normativity and often grounds it implicitly on the mission of a social enterprise. In this paper, we argue critically that it is insufficient to ground social entrepreneurship’s inherent normativity on a social mission. Instead, we will show how such a mission-centric conception of social entrepreneurship, when put into practice, is prone to enhance rather (...) than diminish societal grievances. In order to give social entrepreneurship an explicit and sound ethical grounding, we draw on integrative economic ethics as a frame of reference. From this perspective, social entrepreneurship necessitates adherence to the discourse-ethically reasoned moral principle in order to live up to its inherent normative validity claim of good entrepreneurship. The consideration of social entrepreneurship practices is crucial to make this approach less vulnerable to ethical critique. The addition of a practice dimension overcomes the mission-centric view of social entrepreneurship and opens up a typology of enterprise forms, thereby enabling a more fine-grained distinction between social enterprises and other forms of organization. (shrink)

How can a critical analysis of entrepreneurial intention inform an appreciation of ethics in social enterprise business models? In answering this question, we consider the ethical commitments that inform entrepreneurial action and the hybrid organisations that emerge out of these commitments and actions. Ethical theory can be a useful way to reorient the field of social enterprise so that it is more critical of bureaucratic and market-driven enterprises connected to neoliberal doctrine. Social enterprise hybrid business models are therefore reframed as (...) outcomes of both ethical and entrepreneurial intentions. We challenge the dominant conceptualisation of social enterprise as a hybrid blend of mission and market by reframing hybridity in terms of the moral choice of economic system and social value orientation. We deconstruct the political foundations of charitable trading activities, co-operative and mutual enterprises and socially responsible businesses by examining the rationalities and ethical commitments that underpin them. Whilst conceptual modelling of social enterprise is not new, this paper contributes to knowledge by developing a theory of social enterprise ethics based on the moral/political choices that are made by entrepreneurs when choosing between systems of economic exchange and social value orientation, then expressing it through a legal form. (shrink)

This article identifies power, subjectivity, and practices of freedom as neglected but significant elements for understanding the ethics of social entrepreneurship. While the ethics of social entrepreneurship is typically conceptualized in conjunction with innate properties or moral commitments of the individual, we problematize this view based on its presupposition of an essentialist conception of the authentic subject. We offer, based on Foucault’s ethical oeuvre, a practice-based alternative which sees ethics as being exercised through a critical and creative dealing with the (...) limits imposed by power, notably as they pertain to the conditioning of the neoliberal subject. To this end, we first draw on prior research which looks at how practitioners of social enterprises engage with government policies that demand that they should act and think more like prototypical entrepreneurs. Instead of simply endorsing the kind of entrepreneurial subjectivity implied in prevailing policies, our results indicate that practitioners are mostly reluctant to identify themselves with the invocation of governmental power, often rejecting the subjectivity offered to them by discourse. Conceiving these acts of resistance as emblematic of how social entrepreneurs practice ethics by retaining a skeptical attitude toward attempts that seek to determine who they should be and how they should live, we introduce three vignettes that illustrate how practices of freedom relate to critique, the care for others, and reflected choice. We conclude that a practice-based approach of ethics can advance our understanding of how social entrepreneurs actively produce conditions of freedom for themselves as well as for others without supposing a ‘true self’ or a utopian space of liberty beyond power. (shrink)