How do barriers to the activities of social enterprises affect their financial situation? Evidence based on data from Poland and resource mobilization theory

Abstract

Purpose The purpose of the research is to identify the degree of intensity of barriers to the activities of social enterprises (SEs) and to examine the significance of such barriers regarding the financial situation of SE’s in emerging economies. Design/methodology/approach The data relates to 200 SEs selected from a national survey of 1,300 Polish non-governmental organizations (NGOs). An analysis of barriers to SEs according to the frequency of their occurrence was conducted. An indicator of the intensity of barriers to the activities of social enterprises and an indicator on these enterprises’ overall financial condition were determined. Spearman rank correlation analysis was used to assess the relationship between the indices. Findings The results of the study indicate that in addition to excessive bureaucracy in public administration and the complex formalities related to the use of private and public funds, SEs have difficulties in maintaining good staff and volunteers, whereas people in key positions reference burnout, not only among their own employees but also in themselves. These have a significant impact on the financial situation of SEs. Originality/value This study contributes to the field of social entrepreneurship in two ways. One is at the macro level in that it provides suggestions for public authorities in emerging economies interested in maintaining SEs in good financial condition so that they can effectively fulfil their social functions. The second contribution – the micro approach – is recognizing the extent of the impact of barriers on the financial condition of SEs and also determining the intensity of such barriers with regard to the mobilization of resources by managers, especially in the field of human resources.

Koje organizacijske vrijednosti pokreću uspjeh nevladinih organizacija?

“…This finding raises concerns about the state of government-NGO relations. This could be related to the high barriers to NGO activities in the countries of CEE, NGOs' lack of trust in public authorities, or too much bureaucracy, as described by Mikołajczak (2021Mikołajczak ( , 2022. By examining the relationship between organizational ethical values and various categories of NGO performance, the article also contributes to the theory of the institutional form of nonprofit organizations developed by Henry Hansmann, who emphasizes the importance of organizational trustworthiness in this sector (Cymbal et al, (2022).…”

“…This is true for the level of collaboration between the organization and public and local government institutions and the quality of services the organization provides. This negative correlation with NGO success could be related to insufficient innovative actions implemented by organizations due to their stakeholders or to the numerous administrative obstacles NGOs face in Poland (Mikołajczak, 2021).…”

The Impact of Organisational Values on the Commercialisation of NGOs: Evidence Based on the Management by Values Theory

“…The Impact of Organisational Values on the Commercialisation of NGOs… entities. Institutional constraints as the reason for non-profits' commercialisation are pointed out by Vaceková, Valentinov, and Nemec (2017), Suykens et al (2019a), as well as Mikołajczak (2021b), while the impact of organisational contingencies is explored by . In this context, the presence, intensity and nature of commercial income have also been studied in detail (Child, 2010;Kerlin, Pollak, 2011;Suykens et al 2019b).…”