Alternative social enterprise for sustainable prosperity- a research agenda

A statement of the empirical or theoretical question locating it within the scientific literature. There are a range of alternative models of development that aspire to socio-economic development  while conserving the... [ view full abstract ]

A statement of the empirical or theoretical question locating it within the scientific literature.

There are a range of alternative models of development that aspire to socio-economic development  while conserving the environment. This paper argues that new ‘alternative’ forms of social enterprise are essential to achieving a ‘sustainable prosperity’ that protects the environment and maximises wellbeing.  Sustainable prosperity consists in the capabilities that people have to flourish as human beings, within the ecological and resource constraints of a finite planet. The pursuit of economic growth may have led to increases in GDP but at the cost to the natural environment and with declining measures of wellbeing in many countries. Social enterprises with a focus on environmental and social objectives can become a route to sustainable prosperity and a shift away from conventional models that prioritise  economic growth.  These social enterprise alternatives question widely held assumptions about economic and social development that are predicated on a crude conceptualisation of prosperity. There is also a need for a research agenda that reflects this alteriety. This paper explores a set of key economic concepts that are challenged by social enterprise in practice and sets out an agenda for social enterprise research that addresses sustainability, wellbeing and richer articulation of prosperity.

A concise account of the empirical or theoretical methodological approach. 

The paper draws on a literature review of material related to sustainability, concepts of prosperity and social enterprise

The main argument of the paper.

There are a plethora of different approaches found around the world that have sought alternatives to the ‘business as usual’ approach to maximising GDP growth. These can be related to policies focusing on conservation, education systems, business innovation and development more generally, as well as the opportunities arising from the implementation of the Sustainable Development Goals.

There a wide range of social enterprise models that explore an alternative and more heterodox  economics, anchored in principles of wellbeing and social justice, ecological constraints, long term investment and stability, and changing consumption patterns that go beyond materialism.

This paper identifies key concepts in economics and management that need to be readdressed  in order to provide understanding of sustainable prosperity. Firstly, the concept of growth is challenged and explored. Growth through increasing the use of limited resources is not sustainable and contributes to climate change. A reconceptualization of organisational growth can focus on scaling up of social and environmental value. This may challenge the concept of organisational growth through competitive advantage and find new measures of success beyond financial value. Secondly, the concept of productivity needs to be reassessed in order to consider the value of people’s work beyond crude financial measures. Traditional measures of productivity can be less relevant for social enterprises that focus on providing employment opportunities and training rather than seeking to reduce the amount of labour for each unit of output.  Thirdly, the concept of innovation needs to be problematized so that it can consider the environmental and social value that might be attributed to society as a whole and become a common good. The focus on innovation as a source of individual organisational competitive advantage is problematical for social enterprises that may aim to share their intellectual property and maximise their environmental and social value. Finally, the concept of investment needs to be re-examined to go beyond short term profit maximising objectives and to understand what ‘access to finance’ means for social enterprises. While the social investment industry assumes organisations are wanting repayable finance, social enterprises are seeking a range of investment forms that are related to philanthropy, long horizon repayable debt and shared equity that provides control to the communities they serve.  

A statement of the main conclusions and their relevance to an international audience.

There is therefore an agenda for research and action that considers the role of social enterprise in providing common goods such as improving living standards, health, wellbeing, cultural and community activity and the environment. A greater understanding of the role of alternative enterprise forms requires the examination of : alternative models in different cultural contexts,; approaches to supporting entrepreneurship in these alternatives; the different ways of managing these organisations with multiple objectives. Transferring concepts from the economic models that assume profit maximisation and ignore ecological constraints is unlikely to be successful. The paper therefore concludes by setting out a research agenda to redefine and explore a set of key themes for an alternative economics including growth, productivity, innovation, and investment.