Question

In: Economics

Identify and describe the complexities faced to a social enterprise and explain the central role of...

Identify and describe the complexities faced to a social enterprise and explain the central role of behavior, practices, culture, etc

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Expert Solution

A social enterprise can be described as an organisation that uses commercial strategies for maximizing the improvements in social, financial, and environmental well-being. It focuses on maximizing social impact as well as profits for external shareholders. Their main goal is to encourage, promote, and make social change. However there are several complexities that are faced by a social enterprise

Social entrepreneurs are often asked to bending their behavior to serve the funding community needs over the needs of their mission statement. The cultural issues can significantly limit capital access for minority, women, and indigenous social enterprises around the globe. This misalignment distracts the social enterprise and in their direct growth in the most effective and efficient approach to meet social needs. Moreover as they are starving for funding, thus usually push to report the best possible approach in order to maximize the likelihood of the next round of funding. Also the experimentation in the social enterprise is often not incentivized.


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