A Typology of Social Enterprises Based on Hictoric-Dynamic Analysis – The German Example

The term ‘social enterprise’ in Germany is relatively new and not clearly defined, used only by a minority of organisations which are in one way or the other involved in the international debate, but if we follow the... [ view full abstract ]

The term ‘social enterprise’ in Germany is relatively new and not clearly defined, used only by a minority of organisations which are in one way or the other involved in the international debate, but if we follow the working definition of EMES and others (European Network 1997), Germany can look back on a long and outstanding tradition of ‘social enterprises’.
‘Social enterprises’ have emerged always in times of economic and social crises and reacted generally speaking to failures of either markets or state. As the economy (private and public) is not an end in itself, but a system of means to produce goods and services for to fulfil people’s needs, unmet needs and/or unsolved conflicts caused the emergence of social movements gathering around and trying to solve these problems, in principle as many and as different as the causes which brought them about. ‘Social enterprises’ emerge, if people affected decide to find economic solutions by themselves.

The following typology is based on the identification and historical development of such movements in Germany (following the historic-dynamic analysis introduced by Max Weber), grouped together by similar identities, shared values and organisational structures. The different models which they have developed will be debated alongside the criteria of economic activities, social aims, profit distribution and participatory governance.
There is firstly a group of elder ‘social economy movements’ which dates back to the early stages of industrialisation representing four basic types of ‘social enterprises’ which could be also found in most European countries, based on:
- Economic self help and mutual assistance: The co-operative model
- Charitable help for others: The welfare model
- Philanthropy and corporate giving: The model of foundations
- Community initiatives and civic engagement: The model of traditional associations
Secondly, a group of younger social economy movements emerged since the 1960s and 1970s alongside the new phenomena of crises caused by transformation processes to a post-industrial society following in principle the same four basic types (of economic self help, charitable help, philanthropy and civic engagement), but for different reasons and in different historical contexts, and often outside the already established co-operative or welfare systems:

- The model of integration enterprises
- The model of volunteer agencies
- Models of self-managed enterprises of alternative-, women- and eco-movements
- Models of self help initiatives
- The model of socio-cultural centres
- The model of German work integration enterprises
- The model of local exchange and trading systems
- The model of neighbourhood and community enterprises
- The model of social entrepreneurship
These younger movements reflected in one way or the other on the older traditions, tried to learn from successes and failures and created new variations, sometimes combining different traditions. Some of the most advanced ‘social enterprises’ today are a combination of all these elements.

The paper concludes with an outline on the societal impact in general and the possible future perspectives of ‘social enterprises’ in Germany.

It would be interesting to find out, if this typology could be adapted or transferred to other countries.