Economic dimension and social dimension of social enterprise: how does it influence the realization of the purposes of nonprofit organizations?

Abstract

Social enterprises pursue as a prioritary aim the generation of social impacts guaranteeing the consecution of economic benefits and an adequate management at the same time. This triple approach (economic, social and governance) can be adopted by different types of organizations. Particularly, nonprofit organizations can be considered as a social enterprise if they develop these three dimensions. However, the definition of a social aim could affect the economic dimension. The possibility that tensions emerge between the economic and social dimensions of these organizations could be related with the definition of the social aim. Nevertheless, there is no empirical evidence to support this assertion up-to-date. The aim of this study is to examine the interaction between the definition of the social aim, as an expression of the social dimension of these organizations, and the impact in their economic viability. To do so, we accessed a sample made of by Spanish nonprofit settled in two regions, Navarre and Aragon, which possess different regulations that affect to the concretion of the social aim. Using content analyses, we evidence remarkable differences between the nonprofit organizations located in both regions when the definition of the social aim and the economic dimensions are analysed.