This chapter first describes the different financial resources that are available to nourish the for-profit, not-for-profit, cooperative, and other (hybrid) enterprises in the social enterprise zoo. Each type of financial source, instrument or method is described in some detail, including its traditional and potential applications. This includes the several new types of financial resources designed or adapted specifically for social enterprise, such as program-related investments (PRIs) and social impact bonds. We then apply benefits theory to assess where in the zoo, and to which types of social enterprise animals, these various kinds of financial sustenance are most likely to apply.
Elizabeth A.M. Searing and Dennis R. Young
Jung-In Soh, Elizabeth A.M. Searing and Dennis R. Young
In this chapter, we apply resiliency theory to examine the stability, transformation or demise of animals in the social enterprise zoo, and their adaptability, resistance to, or inability to cope with environmental change. Specifically, we consider the reactions of nonprofit enterprises in the Atlanta housing subsector to the federal budget sequester of 2013. Analysis of these nonprofits reveals several factors affecting resiliency: diversification of income sources allows these enterprises to minimize risk; embeddedness in host communities and in service systems provide safety nets for these organizations; slack resources serve as insurance against disruptions; and leadership and governance can also serve as key protections against instability.
Dennis R. Young, Elizabeth A.M. Searing and Cassady V. Brewer
The zoo concept incorporates an element of design while accommodating organic development and diversity. Thus the zoo metaphor allows us to flesh out the nature of social enterprise diversity itself, including the different legal forms, the various political and economic environments in which social enterprises operate, the diversity of governance structures that oversee social enterprise, the different combinations and varieties of social purpose and market success that social enterprises can embody, the diverse resources that can sustain them, and the alternative approaches to innovation or theories of social change they may adopt. We argue here that the emergence and nature of social enterprise can be understood by extending market failure theory to include the new niches in the social economy that social enterprises fill. Looking to the future, the social enterprise zoo metaphor suggests a rich agenda of research questions including: How can social efficiency be improved by altering the mixes of animals in the zoo and the ways in which each species or subspecies is nurtured and protected? Where should the fences be placed to separate some social enterprise animals from others, and what rules, regulations and incentives should constitute these fences? To what extent can zookeepers actually control what happens in the zoo? What might be the unintended consequences of policies designed to alter the zoo, or exert control over it? And how can we better assess the societal impacts of the social enterprise zoo?