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RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

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Networked social enterprises 211<br />

Literature review<br />

Social enterprises are private organizations dedicated to solving social problems, serving<br />

the disadvantaged and providing socially important goods that were not, in their judgment,<br />

adequately provided by public agencies or private markets. These organizations have pursued<br />

goals that could not be measured simply by profit generation, market penetration, or<br />

voter support (Dees, 1994 apud Mair & Martí, 2004, p. 4).<br />

Social enterprises are organized as businesses that trade for a social purpose. Their legal<br />

status could be a business, a NGO or could be a productive venture of a NGO. They combine<br />

innovation, entrepreneurship and social purpose and seek to be financially sustainable<br />

by generating revenue from trading. Their social mission prioritizes social benefit above financial<br />

profit, and if and when a surplus is made, this is used to further the social aims of the<br />

beneficiary group or community, and not distributed to those with a controlling interest in<br />

the enterprise (Haugh & Tracey, 2004 apud Mair & Martí, 2004, p. 4).<br />

A social enterprise is a specific piece of the market economy, placing its goals and missions<br />

outside the market. A social enterprise is the glue that connects attributes of the social<br />

economy with free-market principles (Hausner, Laurisz & Mazur, 2007 apud Wronka, 2013,<br />

p. 596). Social enterprises, by means of the activities performed, bring added value to the<br />

economy, but also to society in general (Cornelius & Wallace, 2013).<br />

Social innovation should be vital for social enterprises’ development (Praszkier & Nowak,<br />

2012, pp. 17-18). It is one of the major dimensions that characterizes such a venture, together<br />

with social value creation, market orientation or entrepreneurial spirit (Choi and Majundar,<br />

2010, p. 372).<br />

Social enterprises find, most times, solutions for social problems, especially through their<br />

social innovation capacity. These solutions, as well as the forms of social economy developed<br />

by them could be more visible and with a greater impact, if they would be part of social<br />

economy networks capable of influencing policies at local, regional, national and/or European<br />

level.<br />

Largely, a social network refers to a set of actors and to the connections between them<br />

(Wasserman & Faust, 1994, p. 9 apud Hâncean, 2014, p. 20). Marin and Wellman (2012, p.<br />

11 apud Hâncean, 2014, p. 20) define the concept of social network as a set of socially relevant<br />

intersection points, connected through one or several relations (the intersection points<br />

may include actors, organizations, departments, computers, web pages, articles, countries, communities,<br />

vicinities, social positions etc.).<br />

The network activity is considered an essential method for exchanging relevant information,<br />

for mutual learning, for working with competent staff, as well as for fighting for common<br />

causes (Frank & Thompson, 2010, pp. 102-103). Networks could be either informal, or<br />

formal. The dimensions associated with a social network are density of connections, distance<br />

between participants, and structural cohesion (Praszkier & Nowak, 2012, pp. 90-94).<br />

The network activity is that activity of development and maintenance of relations with<br />

other organizations, which have the potential to offer work or career assistance (Wong & Tse,<br />

2015, p. 29). It is important that social enterprises develop a network management strategy<br />

(Forret & Dougherty, 2004).<br />

Networks help social enterprises, but also other actors involved – companies, universities,<br />

individuals etc. – to develop connections and collaboration partnerships which may offer

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