Social Entrepreneurship and Human Resource Development

Social entrepreneurship is the use of business strategies and processes to achieve positive social impact, with a potential but not necessary focus on revenue generation (Bacq & Janssen, 2011; Dees, 2007). Human resource development (HRD) is a multifaceted applied field (Garavan, 2023) aimed at promoting effective, ethical, and humanistic organizations, transformative and situational leadership, sustainable and socially responsible business practices, and an understanding of human development at various levels (Chalofsky, 2014). For HRD professionals, social entrepreneurship is a promising avenue for innovative research and practice. The purpose of this editorial is to bring attention to the intersection of social entrepreneurship and HRD for both researchers and practitioners.

A focal point of HRD is the belief that a learning organization continuously evolves and adjusts to new realities through learning, which is guided by HRD in various ways (Chalofsky, 2014). This makes organizations practicing social entrepreneurship an ideal arena for HRD practice as these organizations embody a culture of constant learning, adaptation, and innovation. By actively addressing societal issues and prioritizing systemic concerns, social entrepreneurship organizations prioritize both societal well-being and the development of a skilled, engaged, and ethically-minded workforce (Bacq & Eddleston, 2018). Therefore, HRD can play an important role in employee learning and improving work processes and management practices within these social entrepreneurship organizations. In this way, social entrepreneurship offers a context for HRD professionals to align their values with the goal of facilitating holistic organizational learning. This includes fostering personal growth in employees and driving high performance, workplace engagement and satisfaction, and overall organizational effectiveness.

As HRD has evolved, the practice has become increasingly intertwined with an organization’s strategic initiatives and comprises various roles such as career development, internal consulting, knowledge management, and fostering intellectual capital (Metcalfe & Rees, 2005). This holistic perspective on HRD, concerned with the interconnectedness of the individual, organization, and society, could greatly benefit social entrepreneurship. HRD professionals can promote growth and development at all levels: from individuals involved in social entrepreneurship to members within an organization and even beneficiaries at a societal level. By incorporating HRD programs into social entrepreneurship practices, organizations can cultivate leaders who possess both business acumen and essential skills like empathy, social awareness, and ethical decision-making. The emphasis on diversity and inclusion in social entrepreneurship can also be driven by HRD efforts to create a workforce that is representative of society and equipped to navigate complex environments. In this regard, HRD professionals can address performance concerns while also addressing humanistic aspects that bring marginalized individuals into the fold of society.

Finally, organizations that practice social entrepreneurship are typically new ventures that rely on various funding sources (Saebi et al., 2019). Ethical considerations and social responsibility are at the core of social entrepreneurship, providing individuals with opportunities to engage in ethical decision-making and recognize the broader societal impact of business activities. This aligns with the goals of HRD, which aims to cultivate responsible and ethically aware leaders (Hatcher & Bowles, 2006). In addition to developing the skills of organizational leaders, HRD can support organizations practicing social entrepreneurship more broadly with its workforce. Social entrepreneurship organizations often employ the individuals they hope to benefit or offer products/services while using surplus for the betterment of their benefactors (Ebrahim et al., 2014). The workforce composition of organizations practicing social entrepreneurship presents distinctive opportunities for learning and development, encourages collaboration among different individuals and cultures, and necessitates adaptive problem-solving skills in constantly evolving environments. These factors make organizations practicing social entrepreneurship an ideal arena for HRD research and practice.

While not an exhaustive list, we believe these are a few of the ways HRD can enhance and be enhanced by social entrepreneurship. Social entrepreneurship prioritizes the welfare of society while also promoting the growth and ethical development of individuals in their workforce. HRD focuses on individual growth within organizations and society with a strong emphasis on promoting sustainable and ethical business practices. Thus, we contend the objectives of social entrepreneurship and HRD are closely intertwined and advocate for increased focus on social entrepreneurship within the discipline.