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The Role for Social Enterprises and Social Investors in the Development Struggle

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  • Whitney McWade

Abstract

This paper reviews the existing development literature, arguing that the currently dominant views and proposed solutions to achieving social and economic development neglect the possible contributions the private sector, and social enterprises specifically, can make in attaining the Millennium Development Goals. Given this latent potential, it will argue that social investors have a crucial role to play by providing a greater inflow of capital into nascent and growing social enterprises in developing countries. Drawing on conclusions from a UK-based study of the social investor, the unique motivations and expectations of this investor class will be outlined. Social entrepreneurs in developed and developing country contexts can both use this information to tailor their business models and plans toward attracting the financial capital needed to grow to scale and realize the positive social externalities for which they were established.

Suggested Citation

  • Whitney McWade, 2012. "The Role for Social Enterprises and Social Investors in the Development Struggle," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 3(1), pages 96-112, March.
    • Handle: RePEc:taf:jsocen:v:3:y:2012:i:1:p:96-112
    DOI: 10.1080/19420676.2012.663783
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    Cited by:

    1. Linda Bergset, 2015. "The Rationality and Irrationality of Financing Green Start-Ups," Administrative Sciences, MDPI, vol. 5(4), pages 1-26, November.
    2. Syrus M. Islam, 2022. "Impact investing in social sector organisations: a systematic review and research agenda," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 709-737, March.
    3. Arena, Marika & Bengo, Irene & Calderini, Mario & Chiodo, Veronica, 2018. "Unlocking finance for social tech start-ups: Is there a new opportunity space?," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 154-165.
    4. Xifeng Wu & Yue Shen & Jin Chen & Yu Chen, 2023. "Social–financial approach for analyzing financial transitions," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-23, December.
    5. De Crescenzo, Veronica & Botella-Carrubi, Dolores & Rodríguez García, María, 2021. "Civic crowdfunding: A new opportunity for local governments," Journal of Business Research, Elsevier, vol. 123(C), pages 580-587.
    6. Suparak Suriyankietkaew & Krittawit Krittayaruangroj & Nacharee Iamsawan, 2022. "Sustainable Leadership Practices and Competencies of SMEs for Sustainability and Resilience: A Community-Based Social Enterprise Study," Sustainability, MDPI, vol. 14(10), pages 1-36, May.

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