Financial Sustainability for Social Entrepreneurship – Pragmatic Social Imperative or Impractical Financial Challenge?

Abstract

This article identifies recent forms of US enterprises that have pragmatically – if unintentionally – expanded the definition of ‘social entrepreneurship’ through an unprecedented level of social value creation without compromising the American tradition of private initiative. In capturing the dimensions of these new firms, the author proposes new theory in three respects: (a) social entrepreneurship can be reframed to incorporate a set of new activities that qualify as social value-creating activities; (b) social ventures can be designed in ways to attract private capital as intensely as traditional ventures; and (c) this originally US model can serve as a blueprint for international initiatives.