Social Enterprise Under Moral Hazard: Who Gets State Subsidies and Active Financing?
Anita Lovas,
Edina Berlinger,
Fanni Tóth
Abstract:We develop a double-sided moral hazard model of social entrepreneurship and derive the optimal state subsidy. Then, we analyze the data of an EU-funded training and mentoring program aiming at preparing social entrepreneurs for private financing. Using content analysis techniques, we investigate the 203 applications for the program, the reviewers’ evaluation, and the selection decision. Social enterprises produce private and public benefits, use market and non-market resources, and involve a wide range of stak… Show more
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