Title: Financing social enterprise in the UK: responding to new challenges in competitive markets

Authors: Walter Mswaka; Olu` Aluko; Safaa Hussein; Armindo Dos Santos De Sousa Teodósio; Huifen Cai

Addresses: Department of Social Entrepreneurship, Rollins College, Florida, USA ' Department of Management, Nottingham Trent University, 50 Shakespeare Street, Nottingham NG1 4FQ, UK ' Faculty of Commerce, Alexandria University, 22 El-Guish Road, El-Shatby, Alexandria, Egypt ' Department of Administration, Pontifical Catholic University of Minas Gerais (PUC Minas), Belo Horizonte – Minas Gerais, Brazil ' Department of Management and Innovation, Middlesex University Business School, NW4 4BT, London, UK

Abstract: Social entrepreneurship activities continue to make a significant contribution to the development of the United Kingdom's (UK) economy and remain at the core of the government's strategies for ameliorating socio-economic deprivation across the country. Despite the growth of this type of business activity, a key area that requires further analysis is how social enterprises respond to the funding challenges posed by globalisation, declining state support and increased demands for social welfare interventions. These challenges also come at a time when the UK Government is encouraging communities to explore innovative ways of tackling socio-economic deprivation, through innovative and sustainable business practices. Drawing on a qualitative case study approach of social enterprises in South Yorkshire UK, this research contributes to extant literature by scrutinising the operations of social entrepreneurs in resource-constrained environments. By employing components of Kirzner's (1973) theory of entrepreneurship, the findings of this investigation highlight how opportunity spotting and innovation in financing strategies have enabled social entrepreneurs in South Yorkshire to widen their organisations' sources of financial resourcing. This study is of particular benefit to policy makers and researchers in social enterprise.

Keywords: equity investments; funding; innovation; legal structures; social enterprise; social entrepreneur; South Yorkshire.

DOI: 10.1504/IJESB.2022.126348

International Journal of Entrepreneurship and Small Business, 2022 Vol.47 No.1, pp.20 - 41

Received: 13 Sep 2018
Accepted: 30 Jun 2019
Published online: 24 Oct 2022 *

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