The Impact of Social Enterprises on Individual Wellbeing in South Korea: The Moderating Roles of Social Capital in Multilevel Analysis

Abstract

Various studies have proposed social enterprise as a potential policy intervention and a policy alternative to deal with the complex problem of wellbeing enhancement. However, the relationship between social enterprise and wellbeing has not been fully expounded, particularly its impact on the local community. This study aims to empirically examine the relationship between social enterprise and the wellbeing of individuals in the local community, utilizing a multilevel framework. It further explores whether social capital, measured as trust, network, and participation, plays a moderating role in the relationship between local social enterprise and the wellbeing of individuals in the community. The results indicate that social enterprise has a positive effect on the wellbeing of individuals in the community, and that social capital, particularly network and participation rather than trust, plays a moderating role in the relationship between local social enterprise and individual wellbeing. The results help explain how social enterprise improves the wellbeing of community residents as a whole, suggesting practical implications for policymakers and practitioners from governments and social enterprises.

Social Inclusion Challenges and the Future of Relational Wellbeing: The Case of Indonesia and South-Korea

“…Thus, unless individuals are provided with a more drastic improvement in economic and vertical wellbeing, they are prone to be less satisfied, which explains the observation that developed states have lower levels of wellbeing (Giri et al, 2013;Kahneman & Deaton, 2010;Khalek, 2014;Peace, 2001). It is suggested that as a country develops, alternative forms of goods, such as nonprofit-based social enterprises, are necessary to provide economic assistance to individuals who are experiencing material difficulties (Woo & Jung, 2022).…”

Perceptions of Health and Wellbeing Among Employees in a Work Integration Social Enterprise in Sweden

“…Through addressing local vulnerabilities that are known to favour or harm health, SEs are considered to improve public health across disadvantaged segments of the population (e.g., through provision of employment and training). In addition, they can also provide an array of programmes, products and services to populations experiencing inequalities in health [1][2][3][4][5].…”

“…For instance, using theories related to capability, social capital, and space of wellbeing, some studies have shown that SEs enhance health and wellbeing [4,15]. However, some argue that many of the studies showing evidence of how SEs relate to public health and wellbeing have relied on small numbers of cases and on interview data [2,16]. Furthermore, there are those who state that most of the available empirical evidence has not taken into consideration the capacities of SEs, which may directly or indirectly affect their effectiveness in supporting socially vulnerable population groups [2].…”

“…In a study carried out in Korea using multilevel modelling, government-certified SEs were found to be associated with positive self-rated health among low-income residents, but some SEs such as those at an early stage in their development, with insufficient profitability and weak corporate governance, tended to show mixed results [2]. Other empirical evidence suggests that SEs are effective in reducing marginalization and stigmatization in disadvantaged groups and can build health assets, social capital, quality social networks, and relationships -as well as provide stable employment; give access to blue and green spaces; and lead to improved health behaviours [6,17,18].…”