Regional Systems of Social Entrepreneurship in Russia: Typology, Development Factors and Key Contradictions

Abstract

In Russia over the last decade, the discourse around social entrepreneurship, has been updated to be based on issues of more effective solutions of social problems. The main actors are socially-oriented non-profit organizations, small and medium-sized businesses. There are three mechanisms in the institutionalization of social entrepreneurship in Russia. The first is related to the development of a system of social investment. The second is the attempt of the government to include non-governmental organizations in the system of state social policy. The third mechanism regards the legal status of small and medium-sized socially-oriented businesses as a social enterprise. The article analyzes the implementation of the first two mechanisms. Due to the uneven development of Russian regions, the specific features of each region should be taken into account. Based on a cluster analysis, the article provides a typology of Russian regions in the terms of the development of regional socio-entrepreneurial systems. We conclude a market of social and entrepreneurial services as a competitive field for socially-oriented non-profit organizations and small and medium-sized businesses has emerged. The low level of development of social and entrepreneurial practices in Russia is explained by the influence of three main factors: the socio-economic development of a particular region, the level of social investment, and the availability and effectiveness of social entrepreneurship support institutions. The article identifies a number of unintended consequences of state policy, hindering the development of social entrepreneurship in Russia. The most significant of these are the strengthening of intersectoral borders between the non-profit sector and the business community, reducing the motivation of entrepreneurs to develop social and entrepreneurial practices, and the dominance of budget organizations in the social services market.