What is a broadly applicable framework of the stages of social entrepreneurship (SE)? Practitioners and scholars have continued to discuss definitions, approaches, and perspectives about SE. The aim of this article is to reframe the current discussions by suggesting a framework of the five stages of SE. We use empirical studies on SE across the United States, Bangladesh, Japan, Cambodia, and India to identify the effectiveness of this framework. We propose a "systemic problem" that would facilitate us to reframe and progress current discussions of SE. This article provides a more solid basis for identifying the concept and the definition of SE. It gives ample room for future researchers to utilize our work. The originality of this article is to reframe current discussions of SE by introducing the five stages of SE, including the systemic problem and Theory of Change (ToC).
Table of Contents
Introduction
1. Theoretical Framework
1.1 Debate on Definitions
1.2 Debate on Approaches
1.3 Debate on Perspectives
1.4 Debate on Theory of Change (ToC)
2. The Five Stages of Social Entrepreneurship
2.1 Definitions of the Five Stages
2.2 Case Studies
2.3 Results
Conclusions
Objectives and Research Focus
This paper aims to address the current lack of a capacity-building methodology within social entrepreneurship by reframing existing discussions through a five-stage framework. The core research question seeks to define these five stages and investigate their developmental effects on social enterprises, emphasizing the critical role of systemic problem identification and the Theory of Change (ToC).
- Methodological development for social enterprise capacity building.
- Integration of "systemic problem" and "Theory of Change" into social entrepreneurship research.
- Empirical analysis of seven successful international social enterprises.
- Reframing the debate between the "social innovation" and "social enterprise" schools of thought.
- Transitioning social enterprises from individualistic efforts to achieving systemic change.
Extract from the Book
Stage 1: Defining Systemic Problem
Stage 1: Defining Systemic Problem is stating a problem derived from the overall social system, e.g., the root cause of inequality, human insecurity, or a crisis of global sustainability. A systemic problem is generated from the gap between public services, which are defined by current laws and private needs that are sometimes beyond the assumptions of current laws. Marginalized people have little opportunity to express their needs to society and fix the social system; the poor lose the most. For example, in the literature, McChesney (1990) states that family homelessness is a systemic problem. She assumes the low-income housing ratio to be the root cause of family homelessness. Or, as a typology of a social entrepreneur, Zahra et al. (2009) proposes the concept of a "Social Engineer." They address that social engineers identify systemic problems within social systems and structures and address them by bringing about revolutionary change. Implicitly or explicitly, social entrepreneurs start their social enterprises by recognizing a systemic problem. The opportunity to create a social enterprise is generated.
Summary of Chapters
Introduction: Provides context for the third sector's limitations and introduces the need for a professional management methodology based on systemic change.
1. Theoretical Framework: Critically reviews existing debates on definitions, approaches, and perspectives, identifying the absence of systemic problem analysis and Theory of Change in current discourse.
1.1 Debate on Definitions: Explores various academic definitions of social entrepreneurship and underscores the necessity of including systemic problem identification.
1.2 Debate on Approaches: Analyzes the dichotomy between the "social innovation" and "social enterprise" schools, suggesting that systemic problem focus can bridge this divide.
1.3 Debate on Perspectives: Compares nonprofit and commercial perspectives on entrepreneurial processes and highlights the limitations of current frameworks for the social sector.
1.4 Debate on Theory of Change (ToC): Discusses the utility of ToC as an organizational "backbone" and its importance in aligning stakeholders and measuring social impact.
2. The Five Stages of Social Entrepreneurship: Proposes a new framework to classify social enterprise development from defining systemic problems to achieving systemic change.
2.1 Definitions of the Five Stages: Details the transition stages, ranging from individualistic foundational work to collective, system-wide transformation.
2.2 Case Studies: Applies the five-stage framework to seven notable international organizations, including Teach For America and Grameen Bank, to test practical applicability.
2.3 Results: Synthesizes findings from the case studies to confirm the framework's effectiveness in guiding social enterprise growth and strategy.
Conclusions: Summarizes the research findings, acknowledges limitations, and provides recommendations for future quantitative and qualitative studies.
Keywords
social entrepreneurship, systemic problem, theory of change, systemic change, the third sector, capacity building, social enterprise, social innovation, collective impact, nonprofit management, sustainable society, stakeholders, entrepreneurship process, organizational development, management methodology
Frequently Asked Questions
What is the core focus of this working paper?
The paper focuses on the development of a framework for social entrepreneurship, specifically addressing why many social enterprises struggle with growth and long-term sustainability by introducing a "five-stage" model.
What are the central themes of the research?
The central themes include the integration of systemic problem identification, the application of a Theory of Change (ToC), capacity building, and the progression toward systemic change.
What is the primary objective or research question?
The primary goal is to define the five stages of social entrepreneurship and to research how these stages influence the development and success of social enterprises.
Which scientific methods are applied in this work?
The author utilizes a qualitative research approach, incorporating an extensive literature review on entrepreneurial debates and conducting multiple case studies of seven successful social organizations across different countries.
What is covered in the main section of the paper?
The main section introduces the theoretical framework—debating definitions and the importance of ToC—and presents the proposed five-stage framework, which is then validated through the analysis of seven diverse case studies.
Which keywords best characterize this research?
Key terms include social entrepreneurship, systemic problem, Theory of Change, capacity building, collective impact, and systemic change.
Why is the "Theory of Change" considered a "backbone" for social enterprises?
The author argues that ToC acts as a central logic for an organization, helping to align internal activities with long-term goals, secure stakeholder collaboration, and provide a roadmap for navigating social complexity.
What is the distinction between the "Individualizing" and "Organizing" stages of social enterprise?
The "Individualizing" stage is characterized by fragile, founder-led activity, whereas the "Organizing" stage represents a professional team-based approach that utilizes ToC to scale and stabilize the organization.
What defines the ultimate "Stage 5: Achieving Systemic Change"?
This stage is achieved when a social enterprise successfully addresses the root causes of a systemic problem, leading to fundamental changes in social systems, structures, or relationships that prevent the problem from reoccurring.
- Arbeit zitieren
- Yutaka Tanabe (Autor:in), 2020, The Five Stages of Social Entrepreneurship. What is a broadly applicable framework?, München, GRIN Verlag, https://www.grin.com/document/531887
