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Gauging the success of social ventures initiated by individual social entrepreneurs

Author

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  • Sharir, Moshe
  • Lerner, Miri

Abstract

This paper focuses on identifying the factors affecting the success of social ventures operating in social settings in Israel. An exploratory qualitative field study included 33 social ventures, founded in the 1990s by individuals acting independently of their positions in other organizations. The study demonstrates eight variables as contributing to the success of the social ventures, arranged in the order of their value: (1) the entrepreneur's social network; (2) total dedication to the venture's success; (3) the capital base at the establishment stage; (4) the acceptance of the venture idea in the public discourse; (5) the composition of the venturing team, including the ratio of volunteers to salaried employees; (6) forming cooperations in the public and nonprofit sectors in the long-term; (7) the ability of the service to stand the market test; and (8) the entrepreneurs' previous managerial experience.

Suggested Citation

  • Sharir, Moshe & Lerner, Miri, 2006. "Gauging the success of social ventures initiated by individual social entrepreneurs," Journal of World Business, Elsevier, vol. 41(1), pages 6-20, February.
  • Handle: RePEc:eee:worbus:v:41:y:2006:i:1:p:6-20
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    References listed on IDEAS

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    1. Bygrave, William D., 1993. "Theory building in the entrepreneurship paradigm," Journal of Business Venturing, Elsevier, vol. 8(3), pages 255-280, May.
    2. Macmillan, Ian C. & Zemann, Lauriann & Subbanarasimha, P. N., 1987. "Criteria distinguishing successful from unsuccessful ventures in the venture screening process," Journal of Business Venturing, Elsevier, vol. 2(2), pages 123-137.
    3. Roure, Juan B. & Keeley, Robert H., 1990. "Predictors of success in new technology based ventures," Journal of Business Venturing, Elsevier, vol. 5(4), pages 201-220, July.
    4. Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
    5. Veronique A.J.M. Schutjens & Egbert Wever, 2000. "Determinants of new firm success," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(2), pages 135-153.
    6. Cooper, Arnold C., 1993. "Challenges in predicting new firm performance," Journal of Business Venturing, Elsevier, vol. 8(3), pages 241-253, May.
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