Developing institutional framework of social entrepreneurship

Abstract

Entrepreneurial ventures addressing social issues has widely spread as a global phenomenon. Although numerous studies have been conducted, the concept is difficult to define. However, the positive impact of social entrepreneurship on alleviating social problems has already been proven. As a newly evolved form of entrepreneurship with a keen difference from its commercial counterpart, social entrepreneurship encounters unique challenges. The research identified the challenges and developed an institutional framework model to foster the growth of successful social entrepreneurial ventures and overcome the challenges to bring positive, systematic and sustained social change. A qualitative phenomenological study was conducted to explore the experiences of 13 social entrepreneurial ventures from four sectors namely social venture, financial institution, NGO and academic institutions located in Selangor and Johor. A snowball sampling method was adopted to select participants for the study. The study used the modified Van Kaam method by Moustakas with Nvivo 9 software application to analyze and interpret data collected through personal semi-structured interviews using open ended questions. The major challenges found within the sample were related to entrepreneurial funding, government policy, entrepreneurial culture, and lack of talented employees. Nine core themes that emerged from the analysis of interview data were government policy, financial institutions, entrepreneurial culture, academia and research institutes, accounting and financial advisory firms, legal firms, private sector CSR initiatives, incubators, and advocacy and interest groups. The findings of the study confirmed seven variables and identified two new ones to add to the existing literature associated with social entrepreneurship institutional framework. Based on the findings the major supporting elements of the institutional framework found within the sample were financial institutions, entrepreneurial culture, and academic and research institutions. The research has filled the gap in the literature pertaining to the understanding of social entrepreneurship institutional framework from the experiences of social ventures in contrast to theory or assumptions. Future research can be conducted to identify the effectiveness of social entrepreneurship institutional framework in re-strategizing government intervention programs for the effective development of social entrepreneurship in Malaysia.