Olinski, Ma ian; Mioduszewski, Ja osław; K iš o ík, Pe e
A icle
De e minan s o he de elopmen o social en e p ises in
he lagging egion o Wa mia and Mazu y
Am i ea u Economic Jou nal
P o ided in Coope a ion wi h:
The Bucha es Uni e si y o Economic S udies
Sugges ed Ci a ion: Olinski, Ma ian; Mioduszewski, Ja osław; K iš o ík, Pe e (2024) : De e minan s
o he de elopmen o social en e p ises in he lagging egion o Wa mia and Mazu y, Am i ea u
Economic Jou nal, ISSN 2247-9104, The Bucha es Uni e si y o Economic S udies, Bucha es , Vol.
26, Iss. 66, pp. 568-588,
h ps://doi.o g/10.24818/EA/2024/66/568
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AE
De e minan s o he De elopmen o Social En e p ises
in he Lagging Region o Wa mia and Mazu y
568 Am i ea u Economic
DETERMINANTS OF THE DEVELOPMENT OF SOCIAL ENTERPRISES
IN THE LAGGING REGION OF WARMIA AND MAZURY
Ma ian Olinski1
*
, Ja osław Mioduszewski2 and Pe e K iš o ík3
1)2) Uni e si y o Wa mia and Mazu y in Olsz yn, Olsz yn, Poland.
3) Ma ej Bel Uni e si y in Banská Bys ica, Banská Bys ica, Slo akia.
Please ci e his a icle as:
Olinski, M., Mioduszewski, J. and K is o ik., P., 2024.
De e minan s o he De elopmen o Social En e p ises
in he Lagging Region o Wa mia and Mazu y.
Am i ea u Economic, 26(66), pp. 568-588.
DOI: h ps://doi.o g/10.24818/EA/2024/66/568
A icle His o y
Recei ed: 12 No embe 2023
Re ised: 10 Feb ua y 2024
Accep ed: 15 Ap il 2024
Abs ac
Social en e p ises in Eu ope a e inc easingly e ol ing in o hyb id en i ies, simul aneously
s i ing o a ain bo h social and economic objec i es. This ans o ma ion aligns hem
uniquely wi h he EU's Cohesion Policy, which seeks o educe dispa i ies and p omo e
ha monious de elopmen ac oss i s egions. These hyb id en e p ises can play a cen al ole
in his policy amewo k, pa icula ly in egions ma ked by economic and social challenges.
The main objec i e o he pape is o explo e po en ial s a egies o imp o e he
pe o mance o social en e p ises ope a ing in economically disad an aged egions. The
Wa mia and Mazu y egion in Poland se es as a pe inen example in his con ex , ma ked
by he highes unemploymen a e in he na ion alongside o he no ably weak economic
indica o s. These ac o s con ibu e o i s designa ion as a “lagging egion” by he Eu opean
Union, hus making i a ocal poin o in e en ion unde he Cohesion Policy. A key
s a egy sugges ed o egions acing hese challenges in ol es os e ing he g ow h o
social en e p ises, which a e dedica ed o add essing social issues h ough ma ke -d i en
app oaches. This s udy p esen s indings de i ed om a su ey-based me hodology. A
comp ehensi e analysis was conduc ed on da a sou ced om 104 social en e p ises in he
Wa mia and Mazu y egion, employing uni a ia e desc ip i e s a is ical echniques. These
echniques included he e alua ion o equency dis ibu ions, he calcula ion o
pe cen ages, means, s anda d de ia ions, and he applica ion o nonpa ame ic es s. The
analysis p o ided insigh s ha indica ed ha social en e p ises ha engaged in di e si ied
business p ac ices exhibi ed supe io e ec i eness compa ed o hose wi h a na owe
scope o ac i i ies. Fu he mo e, he pe spec i es o manage s o hese social en e p ises
we e sc u inised, e ealing a signi ican end. The manage s o di e si ied companies
possessed a ma kedly op imis ic ou look o u u e inancial pe o mance. Howe e , i is
impo an o no e a c i ical limi a ion obse ed in he s udy – e en he en e p ises ha
*
Co esponding au ho , Ma ian Olinski – e-mail: [email protected]
This is an Open Access a icle dis ibu ed unde he e ms o he C ea i e Commons
A ibu ion License, which pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in
any medium, p o ided he o iginal wo k is p ope ly ci ed. © 2023 The Au ho (s).
Economic In e e ences
AE
Vol. 26 • No. 66 • May 2024 569
demons a ed success wi hin hei local egion aced challenges in eplica ing his success
in o he a eas, sugges ing a po en ial cons ain in he scalabili y o hei business models.
Keywo ds: lagging egion, social en e p ise, di e si ica ion o ac i i y.
JEL Classi ica ion: L31, M10, O10.
In oduc ion
The Eu opean Union's Cohesion Policy has demons a ed g ea e e iciency in diminishing
dispa i ies a he in e -coun y le el as compa ed o he in a- egional le el (Ganau and
Kil oy, 2022). Economic de elope s a e p og essi ely ocussing on cul i a ing
en ep eneu ial communi ies as a s a egy o s imula e g ow h in unde pe o ming egions,
owing o he p e alen an icipa ion ha new businesses will con ibu e o local de elopmen
(Goe z e al., 2010; S ephens and Pa idge, 2011) and job c ea ion (Sh es ha, Goe z and
Rupasingha, 2007; Muelle , an S el and S o ey, 2008).
Es ablishing egional bene i s, pa icula ly in unde de eloped a eas, p esen s signi ican
challenges. The e is a p onounced desi e o knowledge and a highly skilled wo k o ce o
clus e in cen al a eas. This une en alloca ion o knowledge-in ensi e economic ac i i ies
consis en ly exace ba es he dispa i y be ween p ospe ous and unde de eloped egions.
Mo eo e , he absence o a subs an ial agg ega ion o en e p ises and consequen ly
employmen oppo uni ies, pa icula ly in con ex s o low di e si y, leads o economic
imbalances in hese lagging egions (Asadi and Ja a i-Samimi, 2023).
Clea ly, lag egions exhibi bo h economic and social p oblems. Poo ly de eloped
in as uc u e and li le pu chasing powe in he local communi y a e accompanied by lack
o educa ion, and weak p o-en ep eneu ial a i ude.
In Eu ope, social en e p ises a e ecognised o hei abili y o os e inclusi e g ow h and
social cohesion, especially in egions ha ha e no bene i ed equally om economic
de elopmen (De ou ny and Nyssens, 2017; Olmedo e al., 2019; Bo zaga e al., 2020). The
Eu opean Union has acknowledged i s ole in p omo ing social inclusion, job c ea ion, and
local de elopmen , pa icula ly in a eas s uggling o eco e om economic down u ns
(Eu opean Commission, 2016; S eine and Teasdale, 2019; Sli ine and Chabaud, 2023). In
Poland, he backd op o social en e p ises is moulded by he na ion's shi om a cen ally
planned economy o ma ke -o ien a ed one (Jokiel and Jokiel, 2021). This ansi ion has
c ea ed egions wi h a ying le els o economic de elopmen , whe e lag a eas a e
cha ac e ised by indus ial decline and high unemploymen . Tha is why social en e p ises in
Poland ha e been seen as ins umen al in e i alising hese egions by c ea ing jobs,
pa icula ly o ma ginalised g oups, and by o e ing se ices ha add ess local needs (F ączak
and Wygnański, 2008; Ciepielewska-Kowalik e al., 2021). Al hough social en e p ises could
be one o he elemen s coun e ac ing nega i e cha ac e is ics in lagging egions, na u ally, hey
will no elimina e all nega i e cha ac e is ics o lagging egions. Bu because hey can help
ealise bo h economic and social goals, hey could be an impo an aspec o a success ul
cohesion policy. Howe e , social en e p ises, jus as p i a e o s a e-owned 'pu ely comme cial'
companies, ace many unc ional ba ie s in lagging egions.
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De e minan s o he De elopmen o Social En e p ises
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Social en e p ises ep esen a dis inc segmen wi hin he en ep eneu ial landscape, playing
a pa icula ly i al ole in unde de eloped egions. These egions a e no only cha ac e ised
by educed g oss domes ic p oduc , bu also g apple wi h low le els o social capi al and
heigh ened unemploymen a es, condi ions whe e he impac o social en e p ises is
especially signi ican . In pa icula , hese egions may equi e a compa a i ely highe
p opo ion o skilled wo ke s o achie e sus ainable economic g ow h (Be z and Pa idge,
2013). The Wo ld Bank Repo indica es ha , compa ed o hei coun e pa s in non
-lagging egions, businesses in lagging egions a e ypically smalle , exhibi lowe
p oduc i i y, and gene a e ewe jobs. Fu he mo e, hey end o unde pe o m ac oss all
hese me ics (Fa ole, Goga and Ionescu-He oiu, 2018). Thus, he ques ion ha domina es
his pape is: How can social en e p ises ope a ing in hese egions pe o m be e and
achie e be e esul s? This esea ch uniquely ocusses on he speci ic con ex o a lag
egion wi h dis inc economic challenges, assessing how social en e p ises ope a e wi hin
such an en i onmen . I o e s new insigh s in o he s a egies ha enable hese companies
o h i e despi e high unemploymen and economic lag. This phenomenon has no been
ho oughly explo ed in he exis ing li e a u e, especially in he con ex o Polish lag
egions, c ea ing a esea ch gap in his a ea.
Mo e and mo e small businesses belie e ha hey can p o i om in e na ional ma ke s
(G i in, 2021). Social en e p ises a e mainly mic o- and small businesses, bu hei small
size does no p e en hem om ope a ing ou side he local en i onmen . Con empo a y
echnologies and he global in eg a ion o he economy acili a e he en y o such
en e p ises in o na ional and in e na ional ma ke s. Howe e , wi hin he in ensely
compe i i e cu en business landscape, small en e p ises ace a my iad o in e nal and
ex e nal challenges (Liñán, Paul and Fayolle, 2020). This is equally ue o social
en e p ises – he applicabili y o esou ce dependency heo y (RDT) mi o s i s ele ance o
'pu ely comme cial' en e p ises. RDT posi s ha esou ces a e i al o o ganisa ional
success (P e e and Salancik, 2003). A he same ime, possession o he esou ces is no
necessa y, because access and con ol o e hem a e su icien . Howe e , hey should be
p ope ly connec ed o and used wi hin he en e p ise o achie e he goals se . Fo example,
expanding beyond he egional ma ke o he social en e p ise o maximising income.
Assuming ha he dual na u e o a social en e p ise is a s a ing poin , s akeholde heo y
(F eeman and Reed) has e en wide applica ions o he a eas desc ibed as lagging egions.
A social en e p ise bene i s om mo e accessible esou ces, including public unding such
as egional p og ammes. In exchange, i is expec ed o enhance he li es o ma ginalised
indi iduals in he labou ma ke and o s imula e he b oade local economy. Regions ha
a e behind ypically exhibi low pe capi a ou pu and limi ed le els o inancial capi al.
The in oduc ion o g ow h o social en e p ises can imp o e hese condi ions and
ou comes, especially i hey expand hei ac i i ies o wide na ional o in e na ional
ma ke s. Hypo hesis H1 he e o e s a es:
H1: Social en e p ises om Wa mia and Mazu y ha sell on na ional and/o in e na ional
ma ke s achie e highe incomes han hei coun e pa s ope a ing only on local o egional
ma ke s.
Con a y o eplica ion s a egies ha adop a supply-side iewpoin , di e si ica ion adop s
a demand-side pe spec i e, add essing cus ome needs by p o iding new p oduc s (Jha,
Bhawe and Sa ish, 2021). Wi hin a ma ke economy, he p ima y mo i es o en e p ises o
pu sue di e si ica ion s a egies include bols e ing compe i i eness h ough a ied
Economic In e e ences
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Vol. 26 • No. 66 • May 2024 571
ope a ions and a aining economies o scale and scope, he eby inc easing ma ke in luence.
Addi ionally, hey may aim o di e si y isk (Le, 2019).
Finance heo y (Chang, 2005) and esou ce dependence heo y (Wan e al., 2011) ha e
been e e enced in s udies indica ing ha p oduc di e si ica ion and ope a ing in mul iple
ma ke s can mi iga e bank up cy isk and aid in comba ing business ailu e (Ohlson, 1980;
Gilbe , Menon and Schwa z, 1990; Guan, Tian and Deng, 2021).
In addi ion, di e si ica ion o economic ac i i y by social en e p ises can be ano he
solu ion o he p oblems o low ma ke abso p ion in lagging egions and he limi ed
pu chasing powe o a local communi y. The e o e, i is plausible ha social en e p ises
which can be lexible in adjus ing o a ious needs o social communi ies can di e si y
hei income sou ces and inc ease hei sales. Thus, hypo hesis H2 s a es:
H2: The le el o income achie ed by social en e p ises in Wa mia and Mazu y is ela ed o
he di e si ica ion o hei economic ac i i y.
The s uc u e o he pape is as ollows: i s , he heo e ical backg ound is es ablished. This
in ol es de ining he concep s o lagging egion and o social en e p ise, o show he
common a ea o hese wo concep s. Second, scien i ically suppo ed hypo heses a e
de eloped. Then he esea ch me hodology is laid ou , in ol ing opics, ime ames, and
loca ions. The esul s allow o he e i ica ion o he hypo heses pu o wa d in he pape
and d awing o conclusions, including how his pape impac s he exis ing li e a u e.
1. Theo e ical backg ound
1.1. Lagging egions
The EU's unde de eloped egions ace subs an ial obs acles in add essing hei economic
unde pe o mance. The cu en con inuous ansi ions, including he mo emen owa d a
sus ainable socie y and he impac s o he COVID-19 pandemic, a e in ensi ying hese
challenges (Pila i and Hun e , 2020).
The Cohesion Policy ca ego ises NUTS-2 egions using hei GDP pe capi a as a
benchma k. This classi ica ion sys em iden i ies h ee dis inc ca ego ies: 'mo e de eloped'
egions, which ha e a GDP pe capi a abo e 90% o he EU a e age; 'in ansi ion' egions,
wi h a GDP pe capi a anging om 75% o 90% o he EU a e age; and 'less de eloped'
egions, whe e he GDP pe capi a alls below 75% o he EU a e age (Ganau and Kil oy,
2022). The 'Ca ching Up Ini ia i e' o he Eu opean Commission, ini ially known as he
'Lagging Regions Ini ia i e', in oduced a mo e de ailed sys em o classi ying egions. This
ini ia i e ep esen ed a signi ican s ep owa ds pinpoin ing speci ic a eas in need o
suppo h ough cus omised in e en ions and in es men s. Unde his ini ia i e, ca ching-
up (o lagging) egions a e classi ied in o wo ca ego ies:
1) Low-income egions a e hose wi h a GDP pe capi a in Pu chasing Powe S anda ds
(PPS) ha was less han 50% o he EU a e age in 2013.
2) Low-g ow h egions a e de ined as ei he less de eloped o ansi ion egions, which
means ha hei GDP pe capi a in PPS was below 90% o he EU a e age in 2013.
Fu he mo e, hese egions did no show con e gence owa ds he EU a e age GDP pe
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De e minan s o he De elopmen o Social En e p ises
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capi a be ween 2000 and 2013 and we e loca ed in membe s a es wi h a PPS GDP pe
capi a below he EU a e age in 2013 (Pila i and Hun e , 2020).
Based on hese c i e ia, 47 egions wi hin he Eu opean Union a e iden i ied. Low-g ow h
egions appea mos ly in G eece, I aly, Spain, and Po ugal, while low-income egions
clus e in Bulga ia, Romania, Hunga y, and Poland. In Poland hese egions a e loca ed in
he eas e n pa o he coun y and include he egions o Wa mia and Mazu y, Podlaskie,
Lubelskie, Podka packie, and Świę ok zyskie. The 47 egions di e om o he s in ha ing
lowe p oduc i i y, educa ional a ainmen and employmen a es (Commission S a
Wo king Documen , 2017). Consequen ly, weak economic indica o s, such as low GDP pe
capi a, sluggish g ow h, and inadequa e in as uc u e, a e e iden ly co ela ed wi h
un a ou able social indica o s, including high unemploymen a es and a lowe le el o
social capi al. The e o e, mos esea che s s udying lagging egions cha ac e ise hem using
bo h economic and social indica o s (Figu e no. 1).
Va ious economic ac i i y measu es and social p og ess indica o s unde line ha
unde de eloped egions can be ca ego ised based on a a ie y o indica o s. GDP con inues
o be a signi ican sou ce o in o ma ion, ecognised o i s eliabili y, s abili y, and s ong
co ela ion wi h o he me ics, and is used in all de ini ions. Howe e , al hough GDP se es
as an e ec i e gene al p oxy, he applica ion o di e en and/o supplemen a y indica o s
can o e a mo e de ailed unde s anding o pa icula challenges. The selec ion o indica o s
is con ingen on he objec i e o iden i ying a speci ic coho o egions (Pila i and Hun e ,
2020). Fo ins ance, cha ac e isa ion o he u al lagging egions in he EU can be achie ed
by using indica o s such as he na ional g ow h a e, he g ow h a e o non-ag icul u al
employmen , and o he s (Te luin, 2003). I is essen ial ha he indica o s used by speci ic
au ho s a e p ecise and measu able and ha hey use public s a is ics and o he sou ces. Fo
ins ance, he las de ini ion p esen ed in Figu e 1 desc ibes lagging egions wi h he use o
a ious indica o s such as en ep eneu ship capi al, human capi al, and o he s. Those
indica o s a e clea ly speci ied. Fo example, en ep eneu ship capi al is quan i ied by he
a e o new business es ablishmen s pe 1,000 indi iduals aged 16 o 64 yea s. Human
capi al is assessed based on he p opo ion o he popula ion aged 20-64 yea s ha has mo e
han h ee yea s o e ia y educa ion (Ejdemo and Ö q is , 2021).
The c i e ia used o iden i y lag egions a e impo an , as hey demons a e he a ious
causal links be ween economic and social p oblems. A popula ion wi h low pu chasing
powe can es ic he g ow h o small businesses ha sell in local ma ke s due o low
demand. A low le el o social capi al can lead o low le els o en ep eneu ship and hence
o high unemploymen a es and low household incomes. I is clea ha he p oblems o lag
egions may be complex. The e o e, desc ip ions ha employ only economic indica o s
may be simplis ic.
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Vol. 26 • No. 66 • May 2024 573
Figu e no. 1. De ining elemen s o lag egions
LAGGING REGION IS DEFINED BY:
1. elemen s ha can inco po a e he dynamism o he
exis ing economic and social s uc u e (Cu belo and
Albu que que, 1993);
2. di e en economic and social con ex s (Bennewo h
and Cha les, 2005);
3. disc epancies in economic and social me ics as
compa ed o he na ional, EU, and o he de eloped
na ions a e age le els (Cons an in e al., 2011);
4. economic and geog aphical ac o s (such as limi ed
access o communica ion and anspo a ion
in as uc u e, and he economic and socio-poli ical
ma ginali y o a egion), alongside he non-
geog aphical a ibu es o agen s ( o ins ance, low
le els o human and social capi al). (He ne , 2012);
5. economic dimension (economic pe iphe ali y) and
social dimension, ega ded as ci ilisa ional
backwa dness (Ko enik, 2012);
6. espec i ely syn he ic indica o s o economic and
complex social le el o de elopmen (Ko ec, 2014);
7. ele en basic indica o s such as GDP, unemploymen
a e, educa ional a ainmen , social p og ess index and
o he s (Commission S a Wo king Documen , 2017);
8. ou economic me ics (coun o businesses and
employees, wage le els, and ou ism) and ou social
me ics (u baniza ion a e, educa ional a ainmen ,
cul u al ac o s, and heal hca e quali y). (S a and
C is ian, 2017);
9. a ie y o economic (e.g., GDP) and social (e.g.,
uneduca ed and/o unskilled popula ion) indica o s
(Pila i and Hun e , 2020);
10. mul iple disc iminan unc ion analysis (GDP pe
capi a, en ep eneu ship capi al, human capi al, and
many o he s) (Ejdemo and Ö q is , 2021).
ECONOMIC ASPECT
SOCIAL ASPECT
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De e minan s o he De elopmen o Social En e p ises
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574 Am i ea u Economic
I is he same as wi h social en e p ises. Highligh ing he duali y o he economic and social
goals o such en e p ises aises he ques ion o how e ec i e hey can be in lagging egions.
Fo example, a communi y ha has limi ed ou pu and hence income, will gene ally ha e
low pu chasing powe , and, subsequen ly, will s uggle o hi e ully quali ied pe sonnel.
This inc eases he isk ha he quali y o local ou pu will be low and calls in o ques ion
whe he he needs o he communi y can be me . Lagging egions may ace p oblems
(imbalances) in bo h demand and supply. Consequen ly, in unde p i ileged a eas, he
equency o new business o ma ion is lesse compa ed o non-unde p i ileged a eas.
Howe e , he unique a ibu es o social en e p ises sugges ha hei capaci y o posi i ely
impac egional de elopmen exceeds ha o o -p o i en e p ises (Haugh, 2005).
O cou se, social en e p ises will no sol e all he socioeconomic p oblems ha a ec lag
egions. Howe e , hey can be one o many ac o s ha suppo he de elopmen o such
egions by acili a ing he p ocess o educing he gap be ween lagging egions and o he
egions. Al hough social en e p ises can con ibu e signi ican ly o he de elopmen o
lagging egions by c ea ing employmen oppo uni ies and p o iding essen ial se ices, i is
impo an o ecognise ha hey canno achie e comp ehensi e de elopmen on hei own.
Ensu ing sus ainable and inclusi e de elopmen equi es a collabo a i e and mul i ace ed
s a egy ha includes go e nmen policies, p i a e sec o in es men , and ac i e communi y
pa icipa ion. By wo king oge he , a ious s akeholde s can le e age hei s eng hs and
esou ces o add ess he complex challenges acing lagging egions and c ea e a mo e
p ospe ous u u e.
1.2. Social en e p ise
The eme gence and e olu ion o social en e p ises ha e a ied ac oss egions a ound he
wo ld, bu can be b oadly ca ego ised in o wo ypes: ma ke and hyb id o ms o social
en e p ise. The ma ke o m eme ged in A ica and No h Ame ica, while he hyb id o m,
which in eg a es he gene a ion o economic and social alue, mani es ed i sel in Eu ope
and La in Ame ica (Poon, 2011). The basic di e ence be ween classic and social
en e p ises is ha wi h he o me bo h hei economic and legal aspec s a e s essed, while
o he la e a social aspec is added. The concep o a social en e p ise me ges he
e iciency and esou ces cha ac e is ic o a con en ional business model wi h he al uis ic
mission simila o ha o a cha i y (Ramus and Vacca o 2017).
The p edominan seconda y social objec i e o social en e p ises is o empowe and assis
indi iduals who a e, o a ious easons, ma ginalised om he labou ma ke . This is
e iden in Chan's (2016) concep ualisa ion o a social en e p ise as a con en ional
comme cial en i y ha gene a es e enue h ough ading goods and se ices. Howe e , i
dis inguishes i sel by s i ing o c ea e job oppo uni ies o hose acing pe sis en
challenges in secu ing o main aining employmen . Cho and Jang (2014) sha e a simila
pe spec i e, po aying a social en e p ise as an o ganisa ional model aimed a achie ing
bo h social and economic goals. This model ocusses in pa icula on acili a ing he
in eg a ion o indi iduals in o he labou ma ke , hus os e ing social cohesion. An
illus a i e o e iew o hese de ini ions o a social en e p ise is p o ided in Figu e 2.
Economic In e e ences
AE
Vol. 26 • No. 66 • May 2024 575
Figu e no. 2. De ining elemen s o a social en e p ise
The o e iews o he de ini ions shown in Figu es 1 and 2 a e uni ed by a common
on ological ounda ion ha encompasses bo h economic and social dimensions.
1. An a ay o en ep eneu ial o 'sel - inancing' s a egies
employed by non-p o i o ganiza ions o p oduce a
po ion o hei own e enue in suppo o hei mission
(NESsT, 1997).
2. A me hod whe ein indi iduals collabo a e o u ilize
ma ke -based en u es o he a ainmen o mu ually
de e mined social objec i es (Talbo e al., 2002).
3. A business ading o a social pu pose (SEUK, 2003).
4. A hyb id o m ha amalgama es he c ea ion o economic
and social alue (Al e , 2003).
5. A business ocused mainly on social objec i es, whe e he
majo i y o i s su plus is ein es ed in o he business o
he communi y, ins ead o being p ima ily mo i a ed by
maximizing p o i s o sha eholde s and owne s (DTI,
2004).
6. En e p ises ha p oduce e enue wi h he aim o
achie ing social, cul u al, communal, economic, and/o
en i onmen al objec i es (BC Cen e o Social
En e p ise, 2005).
7. A compe i i e business, owned and ading o a social
pu pose (SEL, 2007).
8. An o ganiza ion o en u e ha p omo es i s social
mission h ough en e p ising s a egies ha gene a e
income (SEA, 2007).
9. A non-p o i en u e ha me ges he zeal o a social
mission wi h he discipline, inno a ion, and de e mina ion
ypically linked wi h o -p o i businesses (NRA, 2012).
10. An o ganiza ion ha highly alues i s au onomy and is
commi ed o aking economic isks in ela ion o
con inuous socioeconomic ac i i ies (ERS, 2013).
SOCIAL ENTERPRISE IS DEFINED AS:
ECONOMIC ASPECT
SOCIAL ASPECT
AE
De e minan s o he De elopmen o Social En e p ises
in he Lagging Region o Wa mia and Mazu y
582 Am i ea u Economic
adap abili y. Encou aging companies o di e si y could be a c ucial s a egy in helping
hem es ablish a s onge oo hold in bo h local and b oade ma ke s. This app oach no
only os e s economic esilience bu also enhances he en e p ises' capaci y o add ess
di e se social challenges.
Conclusions
Social en e p ises ha e eme ged as signi ican playe s in he Eu opean socioeconomic
landscape, pa icula ly in add essing he challenges aced by lagging egions. These
companies combine adi ional business models wi h social objec i es, o en a ge ing a eas
ha su e om economic unde de elopmen , high unemploymen , and social exclusion.
Social en e p ises mus be equipped wi h he igh esou ces and pe sonnel. Fu he help
may be accessible h ough social-economy suppo cen es ha p o ide aining h ough
egional p ojec s. Depending on he ac i i ies and lexibili y o he sys em, social
en e p ises can adap o e ol ing oppo uni ies in local and egional ma ke s. I is impo an
ha social en e p ises a e ecognisable in local en i onmen s, so ha hei cus ome s know
ha hei own pu chasing decisions help achie e speci ic social objec i es. Tha helps o
make social en e p ises e ec i e g ow h gene a o s in lagging egions.
The ole o social en e p ises in egions such as Wa mia and Mazu y canno be o e s a ed,
as hey can con ibu e signi ican ly o educing egional dispa i ies. The conclusions o he
s udy emphasise he impo ance o long- e m suppo and lexibili y in he app oach o
social en ep eneu ship. Taking in o accoun he dynamics o changing economic and social
condi ions, i is c ucial o con inuously moni o and adjus suppo s a egies, enabling hese
en e p ises o ully u ilise hei po en ial in s imula ing local and egional de elopmen .
The s udy has limi a ions. Fi s , i co e s only one lag egion. Mo e esea ch needs o co e
mo e egions and, mos impo an ly, mo e Eu opean Union coun ies. This would help
decide whe he he esul s a e egion- o coun y-speci ic. Second, i explo es only wo
expansion s a egies o social en e p ises: selling ou side hei o iginal lag egion and
di e si ying economic ac i i ies. Fu he esea ch is needed o disco e whe he social
en e p ises could make o he s a egic choices ha would imp o e hei inancial
pe o mance. Fu he mo e, he scope o his s udy is limi ed o a sho ime ame.
Conduc ing his esea ch o e an ex ended pe iod, spanning se e al yea s, would allow o
a mo e dynamic examina ion o he issue. Such a longi udinal analysis could o e
policymake s aluable insigh o moni o e ol ing ends and pinpoin un apped po en ial
wi hin social en e p ises in pa icula lagging egions.
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