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RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

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212 <strong>RESPONSIBLE</strong> <strong>ENTREPRENEURSHIP</strong><br />

competitive advantage (Freeman, Edwards, & Schroder, 2006). For instance, practically, these<br />

networks offer the possibility to the social enterprises to engage in business partnerships.<br />

Formal networks are made up of at least three enterprises that sign a common collaboration<br />

contract in order to start a pre-established activity, in a determined time frame. These<br />

business networks have varied characteristics and may be in the form of sub-contracting, strategic<br />

alliances, technological transfer agreements etc. (Dictionary of basic terms in<br />

entrepreneurship, 2013, p. 20).<br />

The establishment of a network is undertaken due to the initiative of a social enterprise<br />

that takes over the role of coordinator, accepted by all network members. The following step<br />

is to determine its objective and to find social enterprises that wish to cooperate. The collaborators<br />

may belong to a similar sector (horizontal collaborations), may be from different sectors<br />

of the same chain (vertical collaborations) or may come from complementary sectors of<br />

the branch (collaborations in diagonal). In any of the situations, the basic element for the success<br />

of the network objective is building trust between the partners. After the partners have<br />

been determined, the time horizon and the collaboration type are established. Some networks<br />

can be built on the basis of verbal agreement and others on the basis of a contract, signed by<br />

all network members. After creating the network, the actions to be implemented are decided,<br />

as well as their financing manner. In this stage, essential are the resources and competences<br />

held by the collaborators, which must be complementary, in order to be efficiently used in<br />

the network promotion. When the network was created, the existence of an active management<br />

is necessary for its efficient functioning. The persons participating in the network management<br />

are decided by the member enterprises (Adapted after the Dictionary of basic terms<br />

in entrepreneurship, 2013, p. 20). An effective network leads to the creation of rewards to its<br />

members and social capital (Praszkier & Nowak, 2012, pp. 99-102).<br />

The social enterprise networks created for the achievement of certain target objectives have<br />

varied forms and are characterized by the creation of a social capital, regarding the capacity<br />

of civil society to consolidate the economic efficiency and to create social added value by<br />

means of developing interpersonal and collective commitment networks (Putnam, 1993). Social<br />

capital contributes to our study regarding social enterprises, through its structural and relational<br />

dimensions.<br />

Social capital is widely described by different authors as: features of social organization<br />

such as networks, norms, and social trust that facilitate coordination and cooperation for mutual<br />

benefit (Putnam, 1995, p. 67); the ability of people to work together for common purposes<br />

in groups and organizations (Fukuyama, 1995, p. 10); the ability of actors to secure benefits<br />

by virtue of membership in social networks or other social structures (Portes, 1998, p. 6.);<br />

Social capital is defined by its function. It is not a single entity, but a variety of different entities<br />

having two characteristics in common: they all consist of some aspect of social structure,<br />

and they facilitate certain actions of individuals who are within the structure (Coleman,<br />

1990, p. 302).<br />

The theorists (Liao & Welsch, 2003 apud Mair, & Martí, 2004, p. 11) have elaborated<br />

three highly interrelated dimensions of social capital: structural capital – the structure of the<br />

overall network of relations (Burt, 1992 apud Mair, & Martí, 2004, p. 11); relational capital<br />

– the kind and quality of an actor’s personal relations (Granovetter, 1992, pp. 25-26 apud<br />

Mair, & Martí, 2004, p. 11); and cognitive capital – the degree to which an individual shares<br />

a common code and systems of meaning within a community (Nahapiet & Ghoshal, 1998<br />

apud Mair & Martí, 2004, p. 11).

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