Effectual entrepreneurship and the social enterprise: an examination of the fit between the principles of effectuation and the sphere of the social enterprise as a form of new venture
Creators: name: Ohlsson-Corboz, Anne-Valerie
Publisher: name: RMIT University
Year: 2024

description: The present thesis aims to determine whether the decision-making processes that lead to the launch of social enterprises are consistent with frameworks embraced by commercial ventures. The underlying assumption is that a social enterprise is but one type of new venture. Its specificity lies in the fact that its creation is often the result of an entrepreneur’s desire to address an existing social problem (as opposed to new market creation through the design of a new product or service). However, the decision-making process - as defined within the effectuation logic - and the evolution of the venture are hypothesized to be similar to that of other forms of new venture.<br><br>A longitudinal, qualitative case study method was employed. This case study led to the formulation of a conceptual framework and seven propositions from which to assess the decision-making processes of social entrepreneurs and their impact on the sustainability of the firm. The current research indicates that when entrepreneurs eschew one or more of the principles of effectuation, the likelihood of success is impacted. Findings of the present thesis have a number of important implications for the field of social entrepreneurship, as well as for public policy makers and organizations that support the development of social ventures. On the practical side, findings from this thesis appear to indicate that social enterprises function along the same decision-making principles as other forms of commercial new ventures, helping practitioners build successful enterprises by adding to their toolbox. Thinking along effectual lines helps entrepreneurs to do consciously what they might otherwise have done subconsciously. In addition, providing a framework within which to assess potential indicators of sustainability helps investors in social enterprises make informed choices. On the theoretical side, this thesis contributes to theory on social entrepreneurs and the launch of social enterprises, while also addressing claims that social enterprises cannot be viewed through the same lens as for-profit enterprises. Indeed, findings indicate that effectuation is a useful tool for assessing the decision-making principles of social entrepreneurs and that the various elements that compose effectuation logic are important in determining the sustainability of a social enterprise. As such, this thesis extends the use of the effectuation framework from commercial entrepreneurship to social entrepreneurship.<br><br>To conclude, the primary contribution to the field is the manner in which this study has examined the launch of social enterprises in a new way. The present findings are important, as social enterprises are a growing phenomenon around the world. Researchers, policy makers, consultants, and practitioners are therefore advised to consider the importance of committed stakeholders and partners in the success and, therefore, sustainability of social enterprises.<br>