A Strategic Perspective of Social Enterprise Sustainability

Abstract

In a constrained environment, social enterprise sustainability is trapped in a'survival and maintenance' mode characterised by obscurity. The purpose of this paper is to explore the phenomenon of sustainability from a strategic perspective by looking at two case studies that managed to thrive and grow. Drawing on ∥ in-depth interviews, the paper explores how the phenomenon plays out and how strategic practices are carried out in their local exchange contexts, rising above mundane challenges, and ending up improving the economic and social capacities of their communities. The paper contends that social enterprise sustainability is grounded in understanding the impact of contextual, organisational and individual spheres that correspond to three strategic ex-ante enablers: stakeholder orientation, relationship-oriented organisation, and entrepreneurial behaviour; all of which have had valuable contributions towards the upkeep of the enterprise. The study demonstrates that sustainability of social enterprises in a constrained environment is a function of a continuous entrepreneurial activity and the effective use of social and business models. Beyond its direct contribution to the literature on social enterprise in developing countries, the paper offers a practical framework that underlines the dynamism of a sustainable social enterprise while emphasising key managerial and marketing concepts. It concludes with a number of recommendations for policy and practice as to how to enhance the contribution of management and marketing concepts to sustainable social enterprises.

Sticking to the social mission: Microinsurance in bottom of the pyramid markets

“…At the same time as microinsurers seek to achieve these social goals, they also need to be financially sustainable through the application of commercial and business activities (Sabella and Edi, 2016). While donors may offer support to such organizations, the assumption is that in due time, the operation would be self-sustaining.…”

Social enterprises in Palestine: a critical analysis

“…Social welfare was now no longer considered a responsibility of the government and public sector, or completely positioned within the non-profit sector or an outcome of corporate social responsibility feature of private organizations (Sabella and Eid, 2016). Instead, governments across the world are repositioning themselves as partners in the provision of welfare services (Sabella and Eid, 2016).…”

“…Social welfare was now no longer considered a responsibility of the government and public sector, or completely positioned within the non-profit sector or an outcome of corporate social responsibility feature of private organizations (Sabella and Eid, 2016). Instead, governments across the world are repositioning themselves as partners in the provision of welfare services (Sabella and Eid, 2016). Entrepreneurs are encouraged to make social investments in partnerships with not-for-profit welfare organizations by using business strategies and profit-generation objectives (Sabella and Eid, 2016).…”

“…Instead, governments across the world are repositioning themselves as partners in the provision of welfare services (Sabella and Eid, 2016). Entrepreneurs are encouraged to make social investments in partnerships with not-for-profit welfare organizations by using business strategies and profit-generation objectives (Sabella and Eid, 2016). The role of individual entrepreneurs and the adoption of a dual model has played a significant role toward the growth of "social enterprises" model (Sabella and Eid, 2016).…”

“…Entrepreneurs are encouraged to make social investments in partnerships with not-for-profit welfare organizations by using business strategies and profit-generation objectives (Sabella and Eid, 2016). The role of individual entrepreneurs and the adoption of a dual model has played a significant role toward the growth of "social enterprises" model (Sabella and Eid, 2016). For example, a study on social enterprises undertaken in Palestine demonstrated that social enterprises' sustainability in JEC 12,4 these environments was a function of a continuous entrepreneurial activity and the effective use of social and business models (Sabella and Eid, 2016).…”