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The future of funding for social enterprises

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  • Chong, Paul
  • Kleemann, Linda

Abstract

The funding of social enterprises has undergone significant transformation over the last 20 years shifting from direct grants provided by government and philanthropic foundation sources, to earned revenues from a broader range of sources. In addition, the global economic crisis in 2008 has created new challenges and opportunities for the social enterprise sector. Fiscal tightening by traditional social funding sources was exacerbated by investor wariness of investments without clear reporting transparency and impact accountability. However, the high volatility of conventional markets has led investors to consider diversification strategies and counter-cyclical investments, benefiting many types of social enterprise. This paper describes the challenges and opportunities for funding faced by the social enterprise sector post-economic crisis. It also proposes recommendations for social enterprise managers and policy makers that are intended to increase the pool of funding available to the social enterprise sector.

Suggested Citation

  • Chong, Paul & Kleemann, Linda, 2011. "The future of funding for social enterprises," Kiel Policy Brief 34, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkpb:34
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    Cited by:

    1. Kleemann, Linda & Humberg, Kerstin, 2014. "Social business: A new private sector contribution to development? Reflections on opportunities, limitations, and risks," Kiel Policy Brief 82, Kiel Institute for the World Economy (IfW Kiel).
    2. Clarkin John E. & L. Cangioni Carole, 2016. "Impact Investing: A Primer and Review of the Literature," Entrepreneurship Research Journal, De Gruyter, vol. 6(2), pages 135-173, April.

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