A Positive Theory of Social Entrepreneurship

Abstract:     
I propose a theory aimed at advancing scholarly research in social entrepreneurship. By highlighting the key trade-off between value creation and value appropriation and explaining when situations of simultaneous market and government failure may arise, I suggest that social entrepreneurship is the pursuit of sustainable solutions to problems of neglected positive externalities. I further discuss when positive externalities are likely to be neglected and derive the central goal and logic of action of social entrepreneurship.

Number of Pages in PDF File: 55

Keywords: Social Entrepreneurship, Social Innovation, Empowerment, Economic Externalities, Theory Development, Economic Organization, Institutional Economics, Public Policy

working papers series