The theory of social enterprise

The theory of social enterprise emerged as a distinct field of research at the end of the twentieth century, at the intersection of the non-profit sector and market logic. This summary presents the core of the model: how an organisation can be economically viable and socially useful at the same time.

1. Business tools, social purpose

At the heart of this approach is the idea that economic activity need not be exclusively profit-driven, but can also be directed towards creating social value. On this view, social enterprises are organisations that respond to community or societal problems with business tools and channel their revenues into achieving their social goals.

2. Dual value creation

At the theoretical level, the model is built on the notion of “dual value creation”: social enterprises seek to be economically viable and socially useful at once. Research suggests that the essence of social enterprise lies not merely in the business model, but in the ethical and community-oriented sense of mission that drives innovation.

3. A pillar of the “social impact economy”

The concept is especially powerful for making sense of community initiatives where the key to sustainability is the integration of economic independence and social responsibility. It is no coincidence that in the innovation policies of the EU and the OECD, social enterprises have become one of the fundamental pillars of the “social impact economy”.