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Perceived Opportunities by Social Enterprises and their Effects on Innovation

Author

Listed:
  • Zoltán Bartha

    (University of Miskolc)

  • Ádám Bereczk

    (University of Miskolc)

Abstract

Social enterprises can play an important role in reducing inequality within a society and can also contribute to long-term economic development. Using a database based on the responses of 220 Hungarian social enterprises we first identify the business opportunities that they perceive. We conclude that social enterprises operating in different legal forms have different perceptions of their opportunities, and we speculate that this has an effect on their innovation activity as well. It is striking that – with the exception of social cooperatives – none of the Hungarian social enterprises see current or future social and/or market needs and demand as a major opportunity. This suggests that only social cooperatives have the incentive to focus their innovation efforts on social and market needs. Almost all social enterprises, on the other hand, have high expectation for European Union funds; the threat is that social innovation is driven by the targets set by the authorities allocating European funds, instead of the needs of the society.

Suggested Citation

  • Zoltán Bartha & Ádám Bereczk, 2019. "Perceived Opportunities by Social Enterprises and their Effects on Innovation," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 15(02), pages 3-10.
    • Handle: RePEc:mic:tmpjrn:v:15:y:2019:i:02:p:3-10
    as

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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2019/02/TMP_2019_02_150201.pdf
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    References listed on IDEAS

    as
    1. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
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    More about this item

    Keywords

    business opportunities; inequality; social enterprises; social innovation;
    All these keywords.

    JEL classification:

    • B55 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Social Economics
    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation

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