IDEAS home Printed from https://ideas.repec.org/a/bla/annpce/v87y2016i4p501-527.html
   My bibliography  Save this article

Modelling Social Enterprises

Author

Listed:
  • Aleksandra SZYMANSKA
  • Marc JEGERS

Abstract

The majority of research concentrates exclusively on the objectives of governments, profit entities or non-profit organizations, while a significant number of organizations are hybrids. One form of these hybrids is the social enterprise. This paper theoretically describes social enterprises taking into consideration their main aims. Based on the ?earned income? school of thought, the principal-agent theory and considering the nature of social enterprises? activities we propose the objective functions of their owners (principals) and managers (agents). The maximization problem of the social enterprise is defined as the weighted average of the utilities of two groups of stakeholders who have an influence on the degree of the realization of the social mission and business orientations. We point out the direction which social enterprises should follow in order to obtain the highest value of their objective functions. The desired state for social enterprises should be one in which they reinvest all surpluses in the process of their mission realization and their profit is slightly higher than the required level by the principal's contract.

Suggested Citation

  • Aleksandra SZYMANSKA & Marc JEGERS, 2016. "Modelling Social Enterprises," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(4), pages 501-527, December.
    • Handle: RePEc:bla:annpce:v:87:y:2016:i:4:p:501-527
    as

    Download full text from publisher

    File URL: http://onlinelibrary.wiley.com/doi/10.1111/apce.2016.87.issue-4/issuetoc
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rasa Subačienė & Ramunė Budrionytė & Aida Mačerinskienė & Daiva Tamulevičienė, 2019. "Social enterprises: evaluation of the impact of state support and corporate income exemptions on the state budget of Lithuania," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1156-1171, March.
    2. Yáñez-Valdés, Claudia & Guerrero, Maribel & Barros-Celume, Sebastián & Ibáñez, María J., 2023. "Winds of change due to global lockdowns: Refreshing digital social entrepreneurship research paradigm," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    3. Alessandro Fedele & Raffaele Miniaci & Ermanno Tortia, 2022. "Strong client orientation, little leverage in nonprofit firms?," Small Business Economics, Springer, vol. 58(1), pages 541-563, January.
    4. Alessandro Fedele & Raffaele Miniaci, 2017. "Stakeholder Orientation and Capital Structure in the Social Care Sector," BEMPS - Bozen Economics & Management Paper Series BEMPS40, Faculty of Economics and Management at the Free University of Bozen.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:annpce:v:87:y:2016:i:4:p:501-527. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1370-4788 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.