Understanding the motivations throughout the stages of a social enterprise’s life cycle
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Abstract
Social entrepreneurs have several motivations that lead them to open and continue their companies, which vary according to the stage of the social enterprise’s life cycle. This study seeks to analyze the motivations throughout the stages of a social enterprise’s life cycle. To do this, we carried out a qualitative research with primary data collected through interviews with experts and social entrepreneurs and secondary
data collected through documents and websites. The results indicate three types of motivational factors: essential factors, building factors, and solidifying factors. Each type plays different roles during life cycle. All essential factors are present across all stages of the life cycle. The building factors are found mainly in the early stages, while different solidifying factors are distributed throughout the stages of the life cycle. The essential factors are the main difference between social and traditional entrepreneurs. This research brings new insights by linking motivational factors to the life cycle stages of social enterprises. Entrepreneurs can use this information to identify their stage and leverage their motivators for development, while training programs can be tailored to better align with the life cycle stage of social enterprises.
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Lehmen, L. M., Petrini, M., & Silva, J. V. S. da. (2023). Understanding the motivations throughout the stages of a social enterprise’s life cycle. Brazilian Administration Review, 20(3), e220187. https://doi.org/10.1590/1807-7692bar2023220187
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Research Articles
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Blank, S. (2020). The four steps to the epiphany: successful strategies for products that win. John Wiley & Sons.
Boluk, K. A., & Mottiar, Z. (2014). Motivations of social entrepreneurs: Blurring the social contribution and profits dichotomy. Social Enterprise Journal, 10(1), 53-68. https://doi.org/10.1108/SEJ-01-2013-0001
Carsrud, A., & Brännback, M. (2011). Entrepreneurial motivations: what do we still need to know? Journal of Small Business Management, 49(1), 9–26. http://dx.doi.org/10.1111/j.1540-627X.2010.00312.x
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Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417–436. https://doi.org/10.1111/ijmr.12028
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Germak, A. J., & Robinson, J. A. (2014). Exploring the motivation of nascent social entrepreneurs. Journal of Social Entrepreneurship, 5(1), 5–21. https://doi.org/10.1080/19420676.2013.820781
Ghalwash, S., Tolba, A., & Ismail, A. (2017). What motivates social entrepreneurs to start social ventures? An exploratory study in the context of a developing economy. Social Enterprise Journal, 13(3). http://dx.doi.org/10.1108/SEJ-05-2016-0014
Gil, A. C. (2017). Como Elaborar Projetos de Pesquisa. Atlas.
Glasser, B. G., & Strauss, A. L. (1967). The development of grounded theory. Alden.
Gonçalves, C. P., Carrara, K., & Schmittel, R. M. (2016). The phenomenon of social enterprises: are we keeping watch on this cultural practice? VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 27(4), 1585–1610. http://dx.doi.org/10.1007/s11266-015-9624-9
Grant, A. M. (2008). Does intrinsic motivation fuel the prosocial fire? Motivational synergy in predicting persistence, performance, and productivity. Journal of Applied Psychology, 93(1), 48-58. https://doi.org/10.1037/0021-9010.93.1.48
Gupta, P., Chauhan, S., Paul, J., & Jaiswal, M. P. (2020). Social entrepreneurship research: A review and future research agenda. Journal of Business Research, 113, 209–229. https://doi.org/10.1016/j.jbusres.2020.03.032
Instituto de Cidadania Empresarial. (2022). Instituto Cidadania Empresarial. https://ice.org.br/
Jenner, B., Flick, U., von Kardoff, E., & Steinke, I. (2004). A companion to qualitative research. Sage.
Kruse, P., Wach, D., & Wegge, J. (2021) What motivates social entrepreneurs? A meta-analysis on predictors of the intention to found a social enterprise. Journal of Small Business Management, 59(3), 477-508. https://doi.org/10.1080/00472778.2020.1844493
Limeira, T. M. V., & Freire, P. D. E. L. (2018). Negócios de impacto social: Guia para os empreendedores. Saraiva Educação SA.
Mair, J., & Martí, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1), 36–44. https://doi.org/10.1016/j.jwb.2005.09.002
Miller, T. L., Grimes, M. G., McMullen, J. S., & Vogus, T. J. (2012). Venturing for others with heart and head: How compassion encourages social entrepreneurship. Academy of Management Review, 37(4), 616–640. http://dx.doi.org/10.5465/amr.2010.0456
Mottiar, Z. (2016). Exploring the motivations of tourism social entrepreneurs: The role of a national tourism policy as a motivator for social entrepreneurial activity in Ireland. International Journal of Contemporary Hospitality Management, 28(6), 1137-1154. http://dx.doi.org/10.1108/IJCHM-06-2014-0278
Nicolás Martínez, C., Rubio Bañón, A., & Fernández Laviada, A. (2019). Social Entrepreneur: Same or Different from the rest? VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 30(1), 443–459. http://dx.doi.org/10.1007/s11266-018-00053-9
Oliveira, G. R., & Izzo, D. Filho (2019). Buscando recursos financeiros (pp. 187-214). In E. Barki, G. M. Comoni, & H. G. Torres, Negócios de impacto socioambiental no Brasil. FGV.
Oliveira, F. R. de S., & Fukayama, M. (2018). Governança e estrutura jurídica para negócios de impacto (pp. 341-374). In E. Barki, G. M. Comoni, & H. G. Torres, Negócios de impacto socioambiental no Brasil. FGV.
Pacut, A. (2020). Drivers toward social entrepreneurs engagement in Poland: An institutional approach. Administrative Sciences, 10(1), 5. https://doi.org/10.3390/admsci10010005
Petrella, F., & Richez-Battesti, N. (2014). Social entrepreneur, social entrepreneurship and social enterprise: semantics and controversies. Journal of Innovation Economics Management, 14(2), 143–156. http://dx.doi.org/10.3917/jie.014.0143
Petrini, M., Scherer, P., & Back, L. (2016). Modelo de negócios com impacto social. Revista de Administração de Empresas, 56(2), 209–225. https://doi.org/10.1590/S0034-759020160207
Pipe Social. (2021). Mapa de Negócios de Impacto Socioambiental. (3a. ed). https://pipe.social/
Renko, M. (2013). Early challenges of nascent social entrepreneurs. Entrepreneurship Theory and Practice, 37(5), 1045–1069. https://doi.org/10.1111/j.1540-6520.2012.00522.x
Ries, E. (2011). The lean startup: How today’s entrepreneurs use continuous innovation to create radically successful businesses. https://www.academia.edu/6418358/The_Lean_Startup_How_Today_s_Entrepreneurs_Use_Continuous_Innovation_to_Create_Radically_Successful_Businesses
Rosolen, T., Tiscoski, G. P., & Comini, G. M. (2014). Empreendedorismo social e negócios sociais: Um estudo bibliométrico da produção nacional e internacional. Revista Interdisciplinar de Gestão Social, 3(1). https://doi.org/10.9771/23172428rigs.v3i1.8994
Ruskin, J., Seymour, R. G., & Webster, C. M. (2016). Why create value for others? An exploration of social entrepreneurial motives. Journal of Small Business Management, 54(4), 1015–1037. http://dx.doi.org/10.1111/jsbm.12229
Saebi, T., Foss, N. J., & Linder, S. (2019). Social Entrepreneurship Research: Past Achievements and Future Promises. Journal of Management, 45(1), 70–95. https://doi.org/10.1177/0149206318793196
Sampieri, R. H., Collado, C. F., & Lucio, M. Del P. B. (2013). Metodologia de Pesquisa (5a Ed.). Penso.
Sen, P. (2007). Ashoka’s big idea: Transforming the world through social entrepreneurship. Futures, 39(5), 534–553. http://dx.doi.org/10.1016/j.futures.2006.10.013
Stephan, U., & Drencheva, A. (2017). The person in social entrepreneurship: A systematic review of research on the social entrepreneurial personality (pp. 205–229). In The Wiley Handbook of Entrepreneurship. http://dx.doi.org/10.1002/9781118970812.ch10.
Strauss, A. L., & Corbin, J. (1994). Grounded Theory Methodology-An Overview. Handbook of Qualitative Research. NK Denzin and YS Lincoln. Sage Publications.
Vasconcelos, A. M. de, & Lezana, Á. G. R. (2012). Modelo de ciclo de vida de empreendimentos sociais. Revista de Administração Pública, 46, 1037–1058. https://doi.org/10.1590/S0034-76122012000400007
Vinuto, J. (2014). A amostragem em bola de neve na pesquisa qualitativa: Um debate em aberto. Temáticas, 22(44), 203–220. https://doi.org/10.20396/tematicas.v22i44.10977
Tortia, E. C., Gago, M., Degavre, F. & Poledini, S. (2022) Worker involvement and performance in Italian social enterprises: The role of motivations, gender, and workload. Sustainability, 14(2-1022), 1-20. http://dx.doi.org/10.3390/su14021022
Wanyoike, C. N. & Maseno, M. (2021) Exploring the motivation of social entrepreneurs in creating successful social enterprises in East Africa. New England Journal of Entrepreneurship, 24(2), 79-104. http://dx.doi.org/10.1108/NEJE-07-2020-0028
Yitshaki, R., & Kropp, F. (2016). Motivations and opportunity recognition of social entrepreneurs. Journal of Small Business Management, 54(2), 546–565. http://dx.doi.org/10.1111/jsbm.12157
Zhang, S., Paterson, J. S., & Hujala, T. (2021) Sustaining forest ecosystem services through social enterprises: Motivations and challenges from a case study in scotland. Small-scale Forestry 20, 627–647. http://dx.doi.org/10.1007/s11842-021-09484-7
Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of Business Venturing, 24(5), 519–532. http://dx.doi.org/10.1016/j.jbusvent.2008.04.007
Ashta, A. (2020). Extending the realistic theory to a dynamic life cycle theory of social enterprise. In: A realistic theory of social entrepreneurship. Cham: Palgrave Pivot.
Austin, J., Stevenson, H., & Wei–Skillern, J. (2012). Social and commercial entrepreneurship: same, different, or both? Entrepreneurship Theory and Practice, 30(1), 1–22. https://www.scielo.br/j/rausp/a/HM3r8D3Tfwm7WJZYFkNt5vz/?format=pdf&lang=en
Bacq, S., Hartog, C., & Hoogendoorn, B. (2016). Beyond the moral portrayal of social entrepreneurs: An empirical approach to who they are and what drives them. Journal of Business Ethics, 133(4), 703–718. http://dx.doi.org/10.1007/s10551-014-2446-7
Bandeira-de-Mello, R. (2003). Operacionalizando o método da Grounded Theory nas pesquisas em estratégia: Técnicas e procedimentos de análise com apoio do software Atlas/TI.
Barki, E. (2015). Negócios de impacto: tendência ou modismo? GV Executive, 14(1). https://doi.org/10.12660/gvexec.v14n1.2015.49183
Barki, E., Rodrigues, J., & Comini, G. M. (2020). Negócios de impacto: Um conceito em construção. Revista de Empreendedorismo e Gestão de Pequenas Empresas, 9(4), 477–501. https://doi.org/10.14211/regepe.v9i4.1980
Batson, C. D. (1995). Prosocial motivation: Why do we help others. In A. Tesser (Ed.), Advanced social psychology (pp. 333-381). New York: McGraw-Hill.
Blank, S. (2020). The four steps to the epiphany: successful strategies for products that win. John Wiley & Sons.
Boluk, K. A., & Mottiar, Z. (2014). Motivations of social entrepreneurs: Blurring the social contribution and profits dichotomy. Social Enterprise Journal, 10(1), 53-68. https://doi.org/10.1108/SEJ-01-2013-0001
Carsrud, A., & Brännback, M. (2011). Entrepreneurial motivations: what do we still need to know? Journal of Small Business Management, 49(1), 9–26. http://dx.doi.org/10.1111/j.1540-627X.2010.00312.x
Christopoulos, D., & Vogl, S. (2015). The motivation of social entrepreneurs: The roles, agendas and relations of altruistic economic actors. Journal of Social Entrepreneurship, 6(1), 1–30. https://doi.org/10.1080/19420676.2014.954254
Comini, G., Barki, E., & Aguiar, L. T. de. (2012). A three-pronged approach to social business: a Brazilian multi-case analysis social businesses. Revista de Administração, 47(3), 385–397. https://doi.org/10.5700/rausp1045
Cremonezzi, P. B., Cavalari, D. C., & Gonçalves Dias, S. L. F. (Maio, 2013). Reflexões sobre o papel dos fundos de investimentos de impacto no desenvolvimento de negócios sociais: um estudo de caso. 7º Encontro Nacional de Pesquisadores Em Gestão Social-ENAPEGS, Belém, Pará, Brasil. https://conferencias.ufca.edu.br/enapegs/enapegs-2013
Dees, J. G. (1998). The meaning of social entrepreneurship. Kauffman Center for Entrepreneurial Leadership. https://centers.fuqua.duke.edu/case/wp-content/uploads/sites/7/2015/03/Article_Dees_MeaningofSocialEntrepreneurship_2001.pdf
Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417–436. https://doi.org/10.1111/ijmr.12028
Flick, U. (2012). Introdução à metodologia de pesquisa: Um guia para iniciantes. Penso Editora.
Germak, A. J., & Robinson, J. A. (2014). Exploring the motivation of nascent social entrepreneurs. Journal of Social Entrepreneurship, 5(1), 5–21. https://doi.org/10.1080/19420676.2013.820781
Ghalwash, S., Tolba, A., & Ismail, A. (2017). What motivates social entrepreneurs to start social ventures? An exploratory study in the context of a developing economy. Social Enterprise Journal, 13(3). http://dx.doi.org/10.1108/SEJ-05-2016-0014
Gil, A. C. (2017). Como Elaborar Projetos de Pesquisa. Atlas.
Glasser, B. G., & Strauss, A. L. (1967). The development of grounded theory. Alden.
Gonçalves, C. P., Carrara, K., & Schmittel, R. M. (2016). The phenomenon of social enterprises: are we keeping watch on this cultural practice? VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 27(4), 1585–1610. http://dx.doi.org/10.1007/s11266-015-9624-9
Grant, A. M. (2008). Does intrinsic motivation fuel the prosocial fire? Motivational synergy in predicting persistence, performance, and productivity. Journal of Applied Psychology, 93(1), 48-58. https://doi.org/10.1037/0021-9010.93.1.48
Gupta, P., Chauhan, S., Paul, J., & Jaiswal, M. P. (2020). Social entrepreneurship research: A review and future research agenda. Journal of Business Research, 113, 209–229. https://doi.org/10.1016/j.jbusres.2020.03.032
Instituto de Cidadania Empresarial. (2022). Instituto Cidadania Empresarial. https://ice.org.br/
Jenner, B., Flick, U., von Kardoff, E., & Steinke, I. (2004). A companion to qualitative research. Sage.
Kruse, P., Wach, D., & Wegge, J. (2021) What motivates social entrepreneurs? A meta-analysis on predictors of the intention to found a social enterprise. Journal of Small Business Management, 59(3), 477-508. https://doi.org/10.1080/00472778.2020.1844493
Limeira, T. M. V., & Freire, P. D. E. L. (2018). Negócios de impacto social: Guia para os empreendedores. Saraiva Educação SA.
Mair, J., & Martí, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1), 36–44. https://doi.org/10.1016/j.jwb.2005.09.002
Miller, T. L., Grimes, M. G., McMullen, J. S., & Vogus, T. J. (2012). Venturing for others with heart and head: How compassion encourages social entrepreneurship. Academy of Management Review, 37(4), 616–640. http://dx.doi.org/10.5465/amr.2010.0456
Mottiar, Z. (2016). Exploring the motivations of tourism social entrepreneurs: The role of a national tourism policy as a motivator for social entrepreneurial activity in Ireland. International Journal of Contemporary Hospitality Management, 28(6), 1137-1154. http://dx.doi.org/10.1108/IJCHM-06-2014-0278
Nicolás Martínez, C., Rubio Bañón, A., & Fernández Laviada, A. (2019). Social Entrepreneur: Same or Different from the rest? VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 30(1), 443–459. http://dx.doi.org/10.1007/s11266-018-00053-9
Oliveira, G. R., & Izzo, D. Filho (2019). Buscando recursos financeiros (pp. 187-214). In E. Barki, G. M. Comoni, & H. G. Torres, Negócios de impacto socioambiental no Brasil. FGV.
Oliveira, F. R. de S., & Fukayama, M. (2018). Governança e estrutura jurídica para negócios de impacto (pp. 341-374). In E. Barki, G. M. Comoni, & H. G. Torres, Negócios de impacto socioambiental no Brasil. FGV.
Pacut, A. (2020). Drivers toward social entrepreneurs engagement in Poland: An institutional approach. Administrative Sciences, 10(1), 5. https://doi.org/10.3390/admsci10010005
Petrella, F., & Richez-Battesti, N. (2014). Social entrepreneur, social entrepreneurship and social enterprise: semantics and controversies. Journal of Innovation Economics Management, 14(2), 143–156. http://dx.doi.org/10.3917/jie.014.0143
Petrini, M., Scherer, P., & Back, L. (2016). Modelo de negócios com impacto social. Revista de Administração de Empresas, 56(2), 209–225. https://doi.org/10.1590/S0034-759020160207
Pipe Social. (2021). Mapa de Negócios de Impacto Socioambiental. (3a. ed). https://pipe.social/
Renko, M. (2013). Early challenges of nascent social entrepreneurs. Entrepreneurship Theory and Practice, 37(5), 1045–1069. https://doi.org/10.1111/j.1540-6520.2012.00522.x
Ries, E. (2011). The lean startup: How today’s entrepreneurs use continuous innovation to create radically successful businesses. https://www.academia.edu/6418358/The_Lean_Startup_How_Today_s_Entrepreneurs_Use_Continuous_Innovation_to_Create_Radically_Successful_Businesses
Rosolen, T., Tiscoski, G. P., & Comini, G. M. (2014). Empreendedorismo social e negócios sociais: Um estudo bibliométrico da produção nacional e internacional. Revista Interdisciplinar de Gestão Social, 3(1). https://doi.org/10.9771/23172428rigs.v3i1.8994
Ruskin, J., Seymour, R. G., & Webster, C. M. (2016). Why create value for others? An exploration of social entrepreneurial motives. Journal of Small Business Management, 54(4), 1015–1037. http://dx.doi.org/10.1111/jsbm.12229
Saebi, T., Foss, N. J., & Linder, S. (2019). Social Entrepreneurship Research: Past Achievements and Future Promises. Journal of Management, 45(1), 70–95. https://doi.org/10.1177/0149206318793196
Sampieri, R. H., Collado, C. F., & Lucio, M. Del P. B. (2013). Metodologia de Pesquisa (5a Ed.). Penso.
Sen, P. (2007). Ashoka’s big idea: Transforming the world through social entrepreneurship. Futures, 39(5), 534–553. http://dx.doi.org/10.1016/j.futures.2006.10.013
Stephan, U., & Drencheva, A. (2017). The person in social entrepreneurship: A systematic review of research on the social entrepreneurial personality (pp. 205–229). In The Wiley Handbook of Entrepreneurship. http://dx.doi.org/10.1002/9781118970812.ch10.
Strauss, A. L., & Corbin, J. (1994). Grounded Theory Methodology-An Overview. Handbook of Qualitative Research. NK Denzin and YS Lincoln. Sage Publications.
Vasconcelos, A. M. de, & Lezana, Á. G. R. (2012). Modelo de ciclo de vida de empreendimentos sociais. Revista de Administração Pública, 46, 1037–1058. https://doi.org/10.1590/S0034-76122012000400007
Vinuto, J. (2014). A amostragem em bola de neve na pesquisa qualitativa: Um debate em aberto. Temáticas, 22(44), 203–220. https://doi.org/10.20396/tematicas.v22i44.10977
Tortia, E. C., Gago, M., Degavre, F. & Poledini, S. (2022) Worker involvement and performance in Italian social enterprises: The role of motivations, gender, and workload. Sustainability, 14(2-1022), 1-20. http://dx.doi.org/10.3390/su14021022
Wanyoike, C. N. & Maseno, M. (2021) Exploring the motivation of social entrepreneurs in creating successful social enterprises in East Africa. New England Journal of Entrepreneurship, 24(2), 79-104. http://dx.doi.org/10.1108/NEJE-07-2020-0028
Yitshaki, R., & Kropp, F. (2016). Motivations and opportunity recognition of social entrepreneurs. Journal of Small Business Management, 54(2), 546–565. http://dx.doi.org/10.1111/jsbm.12157
Zhang, S., Paterson, J. S., & Hujala, T. (2021) Sustaining forest ecosystem services through social enterprises: Motivations and challenges from a case study in scotland. Small-scale Forestry 20, 627–647. http://dx.doi.org/10.1007/s11842-021-09484-7
Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of Business Venturing, 24(5), 519–532. http://dx.doi.org/10.1016/j.jbusvent.2008.04.007