Social Enterprises have emerged as an alternative for economic crisis and social divide that both market and government can not solve anymore. Building governance, the interaction among civil society, government and enterprise, is strongly required to...
Social Enterprises have emerged as an alternative for economic crisis and social divide that both market and government can not solve anymore. Building governance, the interaction among civil society, government and enterprise, is strongly required to activate social enterprises. However, there is lack of awareness of social enterprises in Korea. A few studies have attempted to construct a theoretical explanation of social enterprises, and there are not enough empirical studies.
The purpose of this study is to find out the factors that influence on the activation of the social enterprise in Korea. Thus, this study starts with theoretical discussions about the relationship between governance and social enterprise. In addition, the case study on the social enterprises in Korea and other major countries follows. This study attempts the empirical research through the interviews and survey composed of variables based on the literature review. And then, some implications from empirical results are suggested.
Mixed methodologies were applied for this study, such as in-depth interview and questionnaire survey targeted at stakeholder of social enterprise. The interview were conducted in mainly Seoul-Gangwon and Gyeonggi-Incheon area and the questionnaire survey targeted the participants of the social entrepreneurs academy in all regions. 500 copies of the questionnaire were distributed both online and off-line. Data from 320 respondents were collected and 298 valid data were used for the analysis. Also, 18 people including social enterprise officials, social enterprise support institution worker, social entrepreneurs, and preliminary social entrepreneurs were interviewed. Data were analyzed by using SPSS 17.0 and Amos 7.0. Various statistical methods were used; frequency analysis, independent sample t-test, 1-way ANOVA, confirmatory factor analysis, simple correlation, simple regression, multiple regression, path analysis, etc.
The findings are as follows:
First, the awareness of activation of social enterprises, a dependent variable, was slightly negative; 2.56 in average. Also, the effects of social enterprises that provide social services was positive 3.17 in average, and creation of employment was little positive 3.42 in average. Independent variables in the government sector, legal support of social enterprise was slightly negative 2.93 in average, and institutional support was also negative 2.72 in average. E-government services the average were negative response in 2.65. Trust of social enterprise in the civil society sector was positive 3.79 in average and also good consumption had a positive recognition to an average 3.76. To communicate a response also had a positive recognition to an average 3.40. Next, business ethics (or corporate social responsibility) in corporate sector was negatively perceived showing an average of 2.67.
Second, to reveal the influence of independent variables, multiple analysis was performed. As a result, variation analysis of a total of 9 to 6 independent variables showed statistically significant results. Significant independent variables were statistically significant that was legal support, e-government service, trust, business ethics, collaboration‧network, organizational management etc. However, institutional support, good consumption and communication were not statistically significant.
Third, in path analysis some independent variables were found to be directly influential to provision of social services. They are institutional support, trust, organizational management, etc. And indirect effects of legal support, e-government service, trust, business ethics, collaboration network, and organizational management were statistically significant.
Based on these findings, this study proposes some policy recommendations about social enterprise activation under the Governance system as follows.
First of all, the social entrepreneurs should play the key role in enhancing trust in the government's public relations using the media, particularly online media such as internet, for social enterprise to increase the level of trust.
Second, legislation for promotion of social enterprise must be articulated. And contradictions and conflicts between different laws and regulations, such as the local government act and the local tax law, should be avoided.
Third, the social enterprise business associated with e-government services should strive to develop the system.
Fourth, the business ethics of the society should continue to spread to companies engaged in social contribution activities for the tax benefits and incentives through a variety of business ethics need to be spread throughout society.
Fifth, social enterprises and businesses in general should be linked by various methods for support social enterprises.
Sixth, social enterprises themselves should strive to develop the competencies besides the support from governments and businesses. To accomplish this, the role of social entrepreneurs is important to foster the development of systematic education and training system.
Seventh, as the government's budget for social enterprises becomes bigger, appropriate management should follow.
Finally, while previous studies of social enterprises have focused on the theoretical and normative studies, this study tries to reveal the significant factors by both quantitative and qualitative analysis.
Key words: Governance, Social Enterprise, Social Enterprise Enhancement, Provide Social Service, Create Employment.