‘Changing the System’: Compensatory versus Transformative Social Entrepreneurship

Abstract

ABSTRACT'Changing the system' has long been a part of definitions of social entrepreneurship (SE). This paper focuses on capitalism as a global socioeconomic system and understanding the role of SE in relation to this system. A distinction between two types of SE activity is introduced: compensatory and transformative. Compensatory SE compensates for market failures within the global capitalist system. By contrast, transformative SE specifically seeks to change the system of global capitalism. Using the examples of the alterglobalization movement and transition towns, the paper advances a conceptualization of transformative SE which contrasts assumptions with compensatory SE. This distinction aids to make the field of SE more truly global, multidisciplinary, representative and emancipatory.

Solidarity economy and political mobilisation: Insights from Barcelona

“…Even if it is true that there might be for‐profit enterprises where there is a certain attention to the rights and well‐being of employees, they are not the majority, and the dominant neoliberal discourse puts the emphasis on individual entrepreneurship and profit‐making as the essence of entrepreneurial activity. This logic has been also incorporated into that “compensative” version of social entrepreneurship that was introduced above (Newey, 2018), where the rhetoric of the social entrepreneur as, to put it with the words of the Ashoka Foundation, an “extraordinary individual” who brings about societal transformation and innovation is predominant (Dees, 1998; Roberts & Woods, 2005; Seelos & Mair, 2005).…”

“…Against this background, by analysing a plethora of actual alternative economic practices, it is possible to understand how the unicity of the neoliberal model has been contested from the grassroots. In order to mark a difference between the above‐mentioned concepts and other types of experiences that do challenge the status quo, it helps to think in terms of “compensative” versus “transformative” types of socio‐economic organisations (Newey, 2018). In the context analysed, transformative economy is an umbrella concept that includes social and solidarity economy, feminist economy, commons, agroecology, and food sovereignty (Porro, 2017; Suriñach Padilla, 2017).…”

An exploration of the youths perception toward social entrepreneurship development: Evidence from Bangladesh

“…Nevertheless, they act as change agents in the social sector and adopt missions to create and sustain social value, employ in a process of continuous learning and move forward boldly without being defined by resources currently in hand. Social entrepreneurship acts as a precursor to social transformation and it seeks to change the system of global capitalism (Newey, 2018). Von Jacobi et al (2017) hold the view that social entrepreneurship is a potential driver for turbulent and transformational social changes because of its capacity to solve the problems that institutional status quo neglects.…”

“…This finding support by Martín & Martín & Cuervo-Arango (2016) and Mueller et al (2015) who stated that factors like excessive official formalities, rigid procedures, excessive administrative hurdles and unreasonable delay to obtain governments assistance are major obstacles in determining the intention on social entrepreneurship among the youth generation. Newey (2018) added that factors like difficulty in obtaining finance, government regulations, adequate business support, and tax regulations are perceived to be major barriers to social entrepreneurship. Moreover, the nature of uncertainty of social business, the greater financial risk, the lack of family support and practical details about starting a business also perceived as influential factors in determining the perception of social entrepreneurship among young graduates.…”

Social entrepreneurship in the fishing sector of La Guajira

“…Similarly, these managers contribute to the implementation of a social system to facilitate learning processes that allow transforming the values and beliefs of employees in order to convert their interests in the company's objectives. These transformation strategies go beyond incremental change to involve deeper and more fundamental changes [10].…”