Differences in social entrepreneurship between countries
2022
Jurgelane-Kaldava, Inguna | Jankova, Liga | Batenko, Agnese
Social entrepreneurship is one of the fastest growing areas of entrepreneurship. Since the beginning of 21st century, the popularity of social entrepreneurship is steadily, but gradually increases. Currently, social enterprises are operating similarly to traditional ones and thus can be seen separate from charity organizations. This concept is well practiced in emerging economies. The concept of a social enterprise and entrepreneurship can be approached in many different ways. The European Union has an operational definition of a social enterprise. In addition, in various European countries, there are some additional laws and regulations defining social entrepreneurship or a social enterprise. In Latvia, both the definition of social entrepreneurship and social enterprises are included in the Law on Social Entrepreneurship. In Sweden or Estonia, there is no common definition or legal framework for social enterprises. In Finland, the situation is the same, but there is a law concerning work integration enterprises. The EU’s operational definition for social enterprises is common for all European countries. The Baltic States and the Scandinavian countries have different perceptions of social entrepreneurship among the population and entrepreneurs. The paper analyses social enterprises in four European countries: Latvia, Estonia, Sweden and Finland by using national and EU-level knowledge sources. In the next phase, two case studies of social enterprises from each country are analysed according to the EU’s operational definition. As a result, the authors identified the similarities and differences of social enterprises in terms of their social mission, business models and governance models and suggested directions for future research.
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