Competencies, Skills, and Goals Needed for Social Enterprises: Case of the Czech Republic

Competencies, Skills, and Goals Needed for Social Enterprises: Case of the Czech Republic

Zuzana Palová (Business and Employment Support Centrum, Czech Republic) and Jarmila Šebestová (School of Business Administration in Karvina, Silesian University in Opava, Czech Republic)
DOI: 10.4018/978-1-7998-2714-6.ch008

Abstract

Competencies, skills, and goals are a significant part of social enterprises. They carry out the social mission, but the founders and providers need a set of skills which could help them to be successful in those beneficial projects. The aim of this chapter is to define the rightest competence of the founders of social enterprises in the case of the Czech Republic. These competencies will be a combination of competencies suitable for the profit and non-profit sectors. Finally, the evaluation model of triple benefits is suggested and evaluated. This model is based on the primary research evaluation, and on the social return of investment ratio (SROI). There is a place to improve this situation and evaluate the efficiency of triple benefit by the real societal impact in the region as was proposed in this chapter; on the other hand, effectiveness is built on significant factors based on field study, which support networking, willingness to make social innovations and other activities.
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Background

Social entrepreneurship is sometimes referred to as a hybrid combination of the non-profit sector and business activity. Battilana and Lee (2014) point out the differences between traditional entrepreneurs, social entrepreneurs and non-profit organizations, where traditional non-profit organizations are usually funded by external sources (state or donors) and do not carry business risk and typically do not procure financial resources for their own activities. Non-profit organizations are primarily focused on the social sphere. This is confirmed by Nová (2018) on examples of practice from the non-profit sector. Profit-oriented businesses have long been trying to make a profit. If one connects solving social problems with business, the one gets the social enterprise (fig. 1). Social enterprises can acquire both non-profit and commercial legal forms. It is up to the founder to choose which form they prefer, and which is more suitable for their business.

Figure 1.

Types of social enterprises

978-1-7998-2714-6.ch008.f01
Source: Author´s Illustration

The goals of social enterprises can then be divided into two groups, the first group is represented by the creation of social value (public good) that is characteristic of the non-profit sector and the second group is represented by the creation of economic value (Austin et al., 2006). Both values are largely influenced by the values of the social entrepreneur Authors depicted graphically the relationships between them (fig. 2). Through SEM (social and economic mission) modelling, they have been able to demonstrate that social entrepreneurs who focus more on social goals are implementing them more than entrepreneurs who focus more on economic goals. The relationship between social and economic values proved negative for the respondents in the study (Stevens et al., 2015). Both values are largely influenced by the values of a social entrepreneur. Most of the profit is reinvested back into the social enterprise to achieve social performance goals. Thus, a social enterprise should generate profits like any other enterprise, but the difference is in the distribution of profit.

Key Terms in this Chapter

Social Entrepreneurship: Social entrepreneurship is entrepreneurship in a thriving society and the environment.

Competence: It is the ability to do something successfully or efficiently.

NGO: Non-profit non-governmental organization which that was not founded for profit.

Social mission: A statement of the social enterprise, which defines a reason for their existence within social impact.

EU funds: Financial support from European funds for regional development, especially for entrepreneurs, innovations.

Triple benefit: Triple benefit is a framework with three parts: social, environmental (or ecological and local) and financial. The social enterprises are founded on the principle of triple benefit in the Czech Republic. They should fulfil all three parts at the same time.

Social Enterprise: It is a subject of the social economy. Its business is created to further a social purpose in a financially sustainable way.

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