Analysis of Sustainability Determinants of Social Enterprise in Rural Villages

The purpose of this study is to empirically analyze the factors that sustain social enterprises in rural villages. In this study, community business, village community, and village enterprise are identified to have the same concept as social enterprise. The data used in the analysis are the survey data of Wanju County’s village enterprises in Jeonbuk Province. The Binary Logit Model was implemented on the factors which affect the sustainability of social enterprises in rural villages. The results of the analysis are as follows. In the regional development goal, the variables such as ‘generating operating profits’, ‘providing local welfare services’, ‘activating rural villages' and ‘participation of local residents’ were statistically significant and in the method of promoting regional development, the variable ‘presence of surveying regional assets’ was statistically significant. In the case of the local development promoter, the ‘village-led’ variables showed statistically significant results, while in the entrepreneurship, the ‘total income’ and the ‘necessity of manager education' were analyzed statistically significant. The result of measuring the marginal effect has shown that the higher ‘generating operating profits’, ‘activating rural villages’, ‘village-led’, ‘total income’ and ‘managerial education need’, the higher the likelihood of village enterprises continuing to operate in rural villages. However, it was found that village enterprises are less likely to continue to operate as ‘providing local welfare services’, ‘participating in local residents’, and ‘surveying regional assets’ are made. ‘Providing local welfare services’, ‘participation of local residents’, ‘surveying regional assets’, etc. which were highlighted as social enterprise success factors in previous studies were analyzed not to affect the sustainability of social enterprises according to the results of this study.