Essential to society, yet remains on the side-line: The state of social enterprises in New Zealand

Abstract

Social entrepreneurship – the hybrid approach to business that simultaneously pursues financial and social goals through social entrepreneurship – is an expanding area of research, education, and practice worldwide. In terms of business practices, it has become an increasingly relevant approach in societies and economies as nations are working towards achieving the multi-faceted sustainable development goals. Despite the social and environmental benefits of social entrepreneurship brings to community, it is still mainly on the side-line due to institutional and operational barriers that hinder its broader practices and potential positive contribution to the society. This qualitative study examines ten cases of social enterprises by applying a combination of progressive contextualisation and stakeholder analysis. It aims to identify constraints for the growth of this sector in New Zealand and explore opportunities for strengthening the role of the hybrid sector in addressing social and environmental issues that are under-served by prevailing business models. The key findings of the review show the landscape of social business in New Zealand is not robust because of institutional weaknesses in the legal framework and enabling policies, lack of investment options, and limited education about social entrepreneurship.