Business and Social Entrepreneurship: Review of the Mainstream Theoretical Models

Abstract

This overview describes approaches to social entrepreneurship. The aim in this is to identify possible combinations of profit (business) and non-profit (charitable) activity of enterprises in the modern economy. It is noted that the historical development of social entrepreneurship initially took place according to two different logics – Anglo-American and Western European (continental), which contributed to the emergence of two different theoretical models. The characteristic features and essential features of each model are identified. Based on these differences, various traditions are formed in the development of organizational, managerial, and value forms of social entrepreneurship. It is noted that in modern conditions, the convergence of the two historical models is largely taking place, and the formation of a universal (synthetic) theoretical model based on the erasure of significant differences in the practices of social entrepreneurship development is being traced. Considerable attention is paid to the analysis of various modern forms of social entrepreneurship, in particular, to the correlation of such polar categories as income orientation (profitable business) and mission orientation (achieving social results). It is revealed that, on the one hand, in modern economic conditions, the vast majority of social enterprises are forced or voluntarily involved in commercial activities to some extent. On the other hand, all commercial enterprises, in order to achieve long-term success and prosperity, must focus on the implementation of socially significant tasks and achieve social impact in their activities. The article concludes that modern social entrepreneurship in most cases has hybrid forms of organization, is based on a socially-oriented goal (mission), focuses on the production of social change, and the solution of social problems through the entrepreneurial nature of income-generating activities based on the use of business technologies.