Background: - Social enterprises (SEs) address institutional voids by solving social
and environmental needs. In South Africa, SEs play a fundamental role as
government led initiatives are increasingly strained in their ability to satisfy the
social and environmental deficit. Consequently their funding structures are
particularly relevant in the present socio-economic milieu of South Africa.
Objective:- - This paper thus aimed to provide a detailed understanding of the
nuances of funding of social enterprises in South Africa, exploring whether their
structural and mission peculiarities warrant a unique funding approach.
Methodology - This paper studied social enterprises and funders in South Africa
through in-depth interviews provide a comprehensive understanding of the key
funding issues from triangulating between funders and social enterprises to arrive at
convergence and identify divergences. Results: The results indicate that there is no
clarity on the structure and definition of social enterprises in South Africa. This has a
direct bearing on the ability of the SE to attract funding as well as funders to provide
funding. As a result, SEs pivot their structural from to fit funding requirements and
funders sticking to funding approaches for traditional enterprises. Further, as social
enterprises attain self-sustainability, scale is restrained by an unwillingness to
accommodate traditional funding sources such as equity and debt. Conclusion: The
results highlight the unintended funding consequence of the absence of clarity for
Mini Dissertation (MBA)--University of Pretoria, 2017.