Interaction between social enterprises and key actors shaping the field: experiences from the social and health sectors in Hungary

Abstract

Purpose In Hungary, as in other Central and Eastern European countries, the concept of social enterprise (SE) has attracted increased attention in recent years, with certain key actors shaping the organisational field. This growing interest is largely because of the availability of European Union funds focussing on the work integration of disadvantaged groups but ignoring other possible roles of SEs. This study aims to consider a seldom examined and underfunded area: SEs’ institutional environment and organisational activities in the social and health sectors. Design/methodology/approach Based on neoinstitutional theory, the paper uses desk research and qualitative case studies. It presents the experiences of SEs providing social and health services for specific disadvantaged groups. Findings This paper identified the key actors influencing the everyday operation of SEs and examined their connections, interactions and partnerships. Based on the findings, SEs primarily depend on the central state, public social and health institutions and local governments. At the same time, their connections with private customers, networks, development and support organisations, third sector organisations and for-profit enterprises are less significant. The key actors have a relevant impact on the legal form, main activities and the financial and human resources of SEs. SEs, however, have little influence on their institutional environment. Originality/value The paper contributes to understanding the opportunities and barriers of SEs in Hungary and, more generally, in Central and Eastern Europe, especially regarding their place in social and health services.

External Support for Elderly Care Social Enterprises in China: A Government-Society-Family Framework of Analysis

“…Based on the international development trend, in facing obstacles to the development of social enterprises, it is a trend for governments to promote the development of social enterprises through public policies [ 77 ]. The support of central and local governments to social enterprises has been paid more and more attention [ 26 , 78 ]. Institutions constrain the development of social enterprises [ 24 ].…”

Tensions rooted in the dual commitment of social enterprises operating in a less developed region of Hungary

“…, 2017). Similarly, Kiss et al. (2021) found that SEs in the social and health sectors in Hungary that substitute public institutions as a result of the state’s withdrawal from welfare services primarily depend on funding from central state budgets, public social and health institutions, local governments and EU cofinanced grants.…”

“…Most Central and Eastern European SEs cannot achieve economic sustainability exclusively through their business revenue, thus they require donations, grants and volunteer work (G. Fekete et al, 2017) estimations regarding the extent of external financial support range from 25% (SEFORIS research consortium, 2016) to 52% (G. Fekete et al, 2017). Similarly, Kiss et al (2021) found that SEs in the social and health sectors in Hungary that substitute public institutions as a result of the state's withdrawal from welfare services primarily depend on funding from central state budgets, public social and health institutions, local governments and EU cofinanced grants.…”

The Essence of Social Entrepreneurship through a Georgian Lens: Social Entrepreneurs’ Perspectives

“…Moreover, political, legal, and economic conditions influence social enterprises (MacDonald and Howorth 2018). Governments impact the everyday operation of social enterprises through legislation and funding support (Kiss et al 2021). In this regard, policy strategies should address social innovation initiatives to overcome market failure and deliver social good.…”