Investigating Social Entrepreneurship in Developing Countries

Abstract

Social entrepreneurship has drawn interest from global policy makers and social entrepreneurs to target developing countries. Generally, not-for-profit organisations, funded by government and donor grants have played a significant role in poverty alleviation. We argue that, by applying entrepreneurial concepts, organisations can create social value, hence mitigate poverty. This is a theoretical paper that builds upon a multi-dimensional model in analysing how three social enterprises from India and Kenya create social value to address social problems. The findings suggest that whilst the social mission is central to all these organisations, they also create social value through innovation and pro-activeness. Additionally, the cultural and political environmental contexts hinder their attempt to create social value. Building networks and partnerships to achieve social value creation is vital for these organisations. Policy makers should devise policies that would assist social enterprises to achieve development goals.

Keywords: Social entrepreneurship, Poverty, Innovation, Pro-activeness, Risk-Management, Sustainability

JEL Classification: Social Entrepreneurship