The practice of social entrepreneurship: Theory and the Swedish experience

The notion of social entrepreneurship has gained increasing recognition in thelast years, both as an increasingly visible mode of economic action, and as animportant policy tool. The paper outlines a typology that departs from aSchumpeterian view of entrepreneurship, that centers on the creation of newcombinations of resources, and focuses on the nature of actors engaging in thepursuit, and the nature of resources mobilized. The analysis is illustrated bycase study material on social enterprises that operate on the boundaries of theSwedish Welfare State, and historical examples taken from co-operative enterprises. Social entrepreneurship may be mapped on such a typology as acategory of entrepreneurship that primarily (a) is engaged in by collective actors,and (b) involves, in a central role in the undertakings resource mix, sociallyembedded resources. Social entrepreneurship that involves (or centerson) a business activity is one important subcategory of the field. It necessarilyspans the boundary between different rule regimes that define resources andtheir utilization (cf. Polanyi 1944/2001: 57). The core business activity wouldthus involve the tapping of socially embedded resources and their conversioninto (market-) convertible resources. As importantly, to ensure the undertakings(or enterprises) survival over time, it would also be expected to contributeto the replenishment of such resources, reconverting market resources intosocial capital.