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Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies

Author

Listed:
  • Elena G. Popkova

    (Chair “Economic Policy and Public-Private Partnership”, Moscow State Institute of International Relations (MGIMO University), 119454 Moscow, Russia)

  • Bruno S. Sergi

    (Center for International Development, Harvard University, Cambridge, MA 02138, USA
    Department of Economics, University of Messina, 98122 Messina, Italy)

Abstract

The relevance of this study lies in the fact that financial risk is a serious obstacle to the development of social entrepreneurship, preventing the implementation of potential support for sustainable development goals in business. The purpose of this article is to clarify specific aspects of financing factors and financial risk related to social entrepreneurship in developing countries (in comparison with the standard financial risk related to commercial entrepreneurship) in order to analyze the influence of the financing factors of social entrepreneurship on sustainable development, as well as to determine the potential for the development of social entrepreneurship through financial risk management. To achieve this goal, this article uses the methodology of econometrics—dataset modelling of financial risk management in social entrepreneurship to achieve sustainable development in emerging economies. On the basis of the results of this study, firstly, it is substantiated that the financial risks entailed by social entrepreneurship differ from the standard financial risk present in commercial entrepreneurship. Specific factors of the financing of sustainable development in emerging economies are determined and, on the basis of this, financial risks specific to social entrepreneurship in emerging economies are identified as follows: (1) reduced stimulus to use financial resources in long-term investments, which disrupts the stability and decreases inclusion; (2) joint public–private investments and decreased investment in R&D; and (3) expanded investment in the skills required for jobs and “markets of tomorrow”. Secondly, a contradictory influence of financing factors on sustainable development is demonstrated. Thirdly, a large potential for the development of social entrepreneurship by means of financial risk management (maximum reduction) was identified. With the minimization of financial risk, social entrepreneurship would demonstrate substantial progress, with an increase of 99.61% (more than 50%) from 45.18 points to 90.18 points. A novel contribution of this paper to the extant literature consists of the specification of the essence and specifics of social entrepreneurship in emerging economies through the identification of financial risks and the provision of recommendations for their management.

Suggested Citation

  • Elena G. Popkova & Bruno S. Sergi, 2021. "Dataset Modelling of the Financial Risk Management of Social Entrepreneurship in Emerging Economies," Risks, MDPI, vol. 9(12), pages 1-20, November.
    • Handle: RePEc:gam:jrisks:v:9:y:2021:i:12:p:211-:d:688278
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    References listed on IDEAS

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    2. Nikolai I. Berzon & Maksim M. Novikov & Elena L. Pozharskaya & Yulia I. Bakhturina, 2022. "Monitoring the Modern Experience of Financial Risk Management in Russia Based on Corporate Social Responsibility for Sustainable Development," Risks, MDPI, vol. 10(5), pages 1-16, April.
    3. Meri K. Dzhikiya & Veronika V. Yankovskaya & Lyudmila M. Kuprianova & Natalia G. Sapozhnikova & Maria V. Tkacheva, 2024. "Sustainable HRM in the SAP-LAP Model: Flexible Organizational Systems Based on Change Management," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(1), pages 1-15, September.
    4. Olesya P. Kazachenok & Galina V. Stankevich & Natalia N. Chubaeva & Yuliya G. Tyurina, 2023. "Economic and legal approaches to the humanization of FinTech in the economy of artificial intelligence through the integration of blockchain into ESG Finance," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    5. Elena B. Zavyalova & Vera A. Volokhina & Marija A. Troyanskaya & Yulia I. Dubova, 2023. "A humanistic model of corporate social responsibility in e-commerce with high-tech support in the artificial intelligence economy," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-10, December.
    6. Hengbin Yin & Muhammad Mohsin & Luyao Zhang & Chong Qian & Yan Cai, 2022. "Accessing the Impact of FDI Goals on Risk Management Strategy and Management Performance in the Digital Era: A Case Study of SMEs in China," Sustainability, MDPI, vol. 14(22), pages 1-20, November.

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