Towards an integrated framework for opportunity evaluation and creation for social enterprises

Abstract

Social entrepreneurship holds promise for finding solutions to some of societyÕs most pressing problems. From this perspective, supporting the successful creation of social enterprises is vital. This study investigates the processes by which opportunities are evaluated and created for social enterprises. It employs an explorative and qualitative methodology. Data is sourced from 12 social entrepreneurs and four social funders in South Africa using focussed semi-structured interviews. The study finds that social entrepreneurs employ multiple approaches to the evaluation and creation of opportunities, frequently disregarding formal evaluation (causation) and relying on the logics of bricolage and effectuation to create opportunities to sustain their organisations. Through investigating contextual factors and opportunity risks, along with the application of design thinking and lean start-up principles in practice, a set of overlapping frameworks are developed. This study is limited to a sample of South African social entrepreneurs and funders. It finds application for both social entrepreneurs and impact investors in the evaluation and creation of opportunities for social enterprises. This study provides deeper analysis of the process of social venture creation and the related processes of opportunity evaluation and creation. By providing a more granular view on the enactment of processes, along with the contextual and intrinsic factors that drive them, a step has been taken in the direction of an integrated framework for effective opportunity evaluation and creation for social enterprises.