Building new understandings of the practices of social enterprises : evidence from the northeast of England

Abstract

Social enterprises (SEs) are presented in the UK policy context as important vehicles for efficiently creating social value. However, what the concept of a SE includes and excludes is ambiguous, fluid and contested. While the ambiguous nature of the SE concept, internationally and in the UK, is well documented in the academic literature, there is less understanding of the effects of this ambiguity in local support structures for the SE sector. Furthermore, our understanding of how these enterprises are started and sustained, has been limited, by both definitional contestations and, the nature of the academic lenses employed. This study answers two research questions: (i) ‘How is ‘social enterprise’ used and understood in the local ecosystem?’ and (ii) ‘How do individuals and groups start and sustain different types of social enterprises?’ Using qualitative methods, it builds understanding of SEs, using practitioners’ perspectives as a basis for grounded theory. The research occurred in two stages. In the first stage, network ethnography employs participant observation and qualitative interviews to understand the conceptualization of SEs in one ecosystem of support - County Durham in the northeast of England. The second stage focuses on ten SE case studies sampled using a typology of SE journeys developed in stage one. In the second stage, SE case study data analysis uses a collective, multi-level capability approach which extends Sen’s Capability Framework to generate new understandings of the material, social and relational resources and processes involved in starting and sustaining SEs. Key findings include the importance of low/no risk economic capital at start-up, the pivotal role of the ‘constructed SE family’ and extended family, of shared and sharing values and a sense of shared identity play in motivating co-workers to share their expertise and labour for reduced financial return. The typology of SE journeys is refined in stage two. Types of SE journeys are differentiated by founder features and sectoral origin. The two sets of founder features are: personal issue/ crisis led, and expertise/ profession led. The sub types of sectoral origin are: public sector; larger voluntary and community sector (VCS) organisation; smaller volunteer-run VCS organisations; private sector. These subtypes are not exclusive, a founder or founder group can bring together multiple ii founder traits and can benefit from expertise and logic from multiple sectors – highlighting the importance of the collective dimensions of starting and sustaining these enterprises. The study aims to inform future support for, and realistic expectations of these organisations and concludes with practical recommendations. The grounded research design finds a need for crosssectoral SE support which recognises and serves different SE journeys, which integrates the logics and insider knowledge of public, private and third sectors, and which develops and supports the social and relational and value-driven components of resourcing SEs.