IDEAS home Printed from https://ideas.repec.org/a/ids/ijeven/v6y2014i1p85-99.html
   My bibliography  Save this article

The financing structure of social enterprises: conflicts and implications

Author

Listed:
  • Ann-Kristin Achleitner
  • Wolfgang Spiess-Knafl
  • Sarah Volk

Abstract

This article analyses the financing structure of social enterprises which usually have access to a wide range of funding sources. Although a diversified financing structure promises stability in terms of cash flows to the business, empirical evidence shows that social enterprises have a rather concentrated financing structure. This can be explained as a diversified financing structure that can result in conflicts which either originate from the capital providers' divergent return requirements or the design of financing instruments. To reduce these conflicts, inherent in a diversified financing structure social enterprises concentrate on the most suitable financing sources. As social and financial return requirements differ between capital providers, the concentration on a reduced number of financing sources implies a more clearly defined set of expectations that the social enterprise has to consider. The social enterprise needs to adapt to the expectations of its capital providers and align the strategy accordingly.

Suggested Citation

  • Ann-Kristin Achleitner & Wolfgang Spiess-Knafl & Sarah Volk, 2014. "The financing structure of social enterprises: conflicts and implications," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 6(1), pages 85-99.
    • Handle: RePEc:ids:ijeven:v:6:y:2014:i:1:p:85-99
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=59404
    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. Marjan van den Belt & Daniella Blake, 2015. "Investing in Natural Capital and Getting Returns: An Ecosystem Service Approach," Business Strategy and the Environment, Wiley Blackwell, vol. 24(7), pages 667-677, November.
    2. Irene Bengo & Alice Borrello & Veronica Chiodo, 2021. "Preserving the Integrity of Social Impact Investing: Towards a Distinctive Implementation Strategy," Sustainability, MDPI, vol. 13(5), pages 1-19, March.
    3. Szczepan Kosciolek, 2019. "Do sports clubs differ from other non-governmental organizations in terms of revenue sources? The case of Poland," Ekonomia i Prawo, Uniwersytet Mikolaja Kopernika, vol. 18(3), pages 283-294, September.
    4. 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.
    5. Viviani, Jean-Laurent & Maurel, Carole, 2019. "Performance of impact investing: A value creation approach," Research in International Business and Finance, Elsevier, vol. 47(C), pages 31-39.

    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:ids:ijeven:v:6:y:2014:i:1:p:85-99. 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: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=123 .

    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.