IDEAS home Printed from https://ideas.repec.org/a/taf/veecee/v16y2014i3p271-286.html
   My bibliography  Save this article

Social finance and crowdfunding for social enterprises: a public-private case study providing legitimacy and leverage

Author

Listed:
  • Othmar M. Lehner
  • Alex Nicholls

Abstract

The authors work closely with academia and governmental organizations in the UK and abroad to develop new, innovative schemes for social impact investing. Such schemes include considerations for public-private collaborations, legislative actions, and especially in this case, for the leveraged use of public and philanthropic funds in Crowdfunding (CF). The relatively new phenomenon of CF can not only provide necessary funds for the social enterprises, it may also lead to a higher legitimacy of these through early societal interaction and participation. This legitimacy can be understood as a strong positive signal for further investors. Governmental tax-reliefs and guarantees from venture-philanthropic funds provide additional incentives for investment and endorse future scaling by leveraging additional debt-finance from specialized social banks. This case study identifies idiosyncratic hurdles to why an efficient social finance market has yet to be created and examines a schema as a case of how individual players' strengths and weaknesses can be balanced out by a concerted action. The paper discusses the necessary actions, benefits and implications for the involved actors from the public, private and third sector.

Suggested Citation

  • Othmar M. Lehner & Alex Nicholls, 2014. "Social finance and crowdfunding for social enterprises: a public-private case study providing legitimacy and leverage," Venture Capital, Taylor & Francis Journals, vol. 16(3), pages 271-286, July.
    • Handle: RePEc:taf:veecee:v:16:y:2014:i:3:p:271-286
    DOI: 10.1080/13691066.2014.925305
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13691066.2014.925305
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13691066.2014.925305?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Alex Nicholls & Alex Murdock, 2012. "The Nature of Social Innovation," Palgrave Macmillan Books, in: Alex Nicholls & Alex Murdock (ed.), Social Innovation, pages 1-30, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mara Del Baldo & Maria-Gabriella Baldarelli, 2017. "Renewing and improving the business model toward sustainability in theory and practice," International Journal of Corporate Social Responsibility, Springer, vol. 2(1), pages 1-13, December.
    2. Equey, Catherine & Priftis, Athanasios & Trabichet, Jean-Philippe & Hutzli, Vanissla, 2024. "Designing a digital citizen-centered service," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    3. Raquel Francisco Mafra & Jacir Leonir Casagrande & Ana Regina de Aguiar Dutra & Nei Antonio Nunes & Felipe Texeira Dias & Samuel Borges Barbosa & José Baltazar Salgueirinho Osório de Andrade Guerra, 2024. "Social Innovation as a Support for the Visibility of Vulnerable Communities," Sustainability, MDPI, vol. 16(11), pages 1-22, May.
    4. Alessandro Piperno & Christian Iaione & Luna Kappler, 2023. "Institutional Collective Actions for Culture and Heritage-Led Urban Regeneration: A Qualitative Comparative Analysis," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    5. Daniel Alonso‐Martínez & Nuria González‐Álvarez & Mariano Nieto, 2019. "The influence of financial performance on corporate social innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 859-871, July.
    6. Valentina Cattivelli & Vincenzo Rusciano, 2020. "Social Innovation and Food Provisioning during Covid-19: The Case of Urban–Rural Initiatives in the Province of Naples," Sustainability, MDPI, vol. 12(11), pages 1-15, May.
    7. White, Leroy, 2018. "A Cook's tour: Towards a framework for measuring the social impact of social purpose organisations," European Journal of Operational Research, Elsevier, vol. 268(3), pages 784-797.
    8. Rita Vasconcellos Oliveira, 2021. "Social Innovation for a Just Sustainable Development: Integrating the Wellbeing of Future People," Sustainability, MDPI, vol. 13(16), pages 1-12, August.
    9. Andrzej Klimczuk, 2018. "Polityka publiczna wobec starzenia się ludności. Przegląd pojęć i podejść teoretycznych," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 5(4), pages 1-28.
    10. Carmen Guzmán & Francisco J. Santos & Teresa Savall, 2024. "How to explain social innovation in elderly care services: The role of for-profit and non-profit social enterprises," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1849-1877, September.
    11. Madhuwanthi Premadasa & Janaka Siyambalapitiya & Kumudu Jayawardhana & Imali Fernando, 2023. "Conceptualizing the Role of Social Entrepreneurial Orientation in the Triple Bottom Line in the Social Enterprise Context: Developing Country Perspective," Sustainability, MDPI, vol. 15(11), pages 1-21, May.
    12. Finlay MacGregor & Vasna Ramasar & Kimberly A. Nicholas, 2017. "Problems with Firm-Led Voluntary Sustainability Schemes: The Case of Direct Trade Coffee," Sustainability, MDPI, vol. 9(4), pages 1-25, April.
    13. Scheidgen, Katharina & Gümüsay, Ali Aslan & Günzel-Jensen, Franziska & Krlev, Gorgi & Wolf, Miriam, 2021. "Crises and entrepreneurial opportunities: Digital social innovation in response to physical distancing," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    14. Dominic Chalmers, 2013. "Social innovation: An exploration of the barriers faced by innovating organizations in the social economy," Local Economy, London South Bank University, vol. 28(1), pages 17-34, February.
    15. Youssef Nafil & Abdellatif Bouazza, 2019. "Role of Social Innovation in Socioeconomic Development in Morocco. Case Studies of Socially Innovative Associations," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 18(2), pages 73-92, December.
    16. Noelia Franco-Leal & Carmen Camelo-Ordaz & Juan Pablo Dianez-Gonzalez & Elena Sousa-Ginel, 2020. "The Role of Social and Institutional Contexts in Social Innovations of Spanish Academic Spinoffs," Sustainability, MDPI, vol. 12(3), pages 1-24, January.
    17. Abdellatif BOUAZZA & Youssef NAFIL, 2019. "Rôle de l’Innovation Sociale dans le Développement Socioéconomique au Maroc : Premières Constatations à partir de la Littérature, et Etude de Cas de 4 Associations Socialement Innovantes," CIRIEC Working Papers 1907, CIRIEC - Université de Liège.
    18. Karin Heitzmann & Florian Wukovitsch, 2015. "Towards social investment and social innovation in EU member states? First observations of recent developments in Austria," ImPRovE Working Papers 15/19, Herman Deleeck Centre for Social Policy, University of Antwerp.
    19. Mouhcine Rhouiri & Mohamed-Habiboullah Meyabe & Fatima-Zahra Yousfi & Hicham Saidi & Abdellatif Marghich & Bouchra Aiboud-Benchekroun & Fatima-Zahra Madhat, 2023. "Stakeholders’ Involvement, Organizational Learning and Social Innovation: Factors for Strengthening the Resilience of Moroccan Cooperatives in the Post-COVID-19 Era," Sustainability, MDPI, vol. 15(11), pages 1-14, May.
    20. Marival Segarra‐Oña & Angel Peiró‐Signes & José Albors‐Garrigós & Blanca De Miguel‐Molina, 2017. "Testing the Social Innovation Construct: An Empirical Approach to Align Socially Oriented Objectives, Stakeholder Engagement, and Environmental Sustainability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 24(1), pages 15-27, January.

    More about this item

    Statistics

    Access and download statistics

    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:taf:veecee:v:16:y:2014:i:3:p:271-286. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TVEC20 .

    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.