Social Entrepreneurship in Mordovia: New Opportunities, New Problems

Abstract

Over the past decade, there has been a noticeable upsurge in interest in social entrepreneurship in our country with legislation aimed at providing socially beneficial activities and addressing social issues. However, a thorough examination of the academic literature reveals that despite the plethora of approaches, the concept remains nebulous, mainly due to the dual mission undertaken by social enterprises. As a result, this dual mission generates a complex identity paradigm that is tied to the imperative of generating social value through market mechanisms. This article attempts to provide a comprehensive analysis of the landscape of social entrepreneurship within a specific region – the Republic of Mordovia. However, we believe that some of the conclusions drawn can be generalized to other regions. The research questions addressed in the study concern the level of development of social entrepreneurship, the most in-demand niches, the perceptions of various actors regarding dual identity, as well as the identification of the main restraining factors and prospects for the development of such activities in modern Russia. The empirical foundation of this study is based on the findings of a targeted survey conducted amongst entrepreneurs engaged in providing services within education, social welfare, healthcare, sports and wellness, culture, and ecology (n = 107). This survey is complemented by in-depth semi-structured interviews conducted with representatives of relevant organizations, entrepreneurs themselves, and representatives of research institutions (n = 10). The research conducted has revealed that the development trajectory of the studied sector within the republic is in line with the national trends, with educational services and offers related to physical education and health improvement emerging as the most accessible market entry points. However, despite the strong commitment of development institutions, actors in the social economy confront certain obstacles, in particular a lack of financial support. Another problem lies in the mental realm, as a number of direct and indirect factors suggest that regional social entrepreneurs are trapped in a dual identity that seems to prevent them from fully realizing either their social or their entrepreneurial potential.