Published in: Heliyon
Cited as: Akbulaev, N., Y. Aliyev and T. Ahmadov (2019). “Research models for financing social business: theory and practice.” Heliyon 5(5): e01599.
In the establishment of social enterprises with further functioning, there exists the problem of accessing investments. Therefore, theoretical and managerial aspects of the models formation of financing social entrepreneurship in the global economy are discussed in the article. The purpose of this research is consideration in financing methods of social enterprises for competitiveness in provision of the highest quality services and improvement of living standards. In order to achieve this purpose, methods of logical analysis, expert assessments, comparison method as well as systems analysis, synthesis, induction, deduction and analogies were applied. Moreover, the literature review on problems of social entrepreneurship development were analyzed. The approaches of social entrepreneurship definition and its disparity from charitable organizations and traditional businesses were highlighted. Furthermore, comparative analysis of the European and American models of financing social business was provided. The results are presented in five tables. The discussion of financial support for social enterprises is more active at all levels of government compared with the United States. In conclusion, the investment transparency of such enterprises with open accounting system should be driven by future development of social entrepreneurship. In view of this, conditions for the formation of social financial market can be created.
Recommendations from this resource
” The financial resources in social entrepreneurship should be directed towards replicating models that are effective in practice. On the one hand, it may affect the innovativeness of the activities in social enterprises, and on the other hand, it will also contribute to financial stability. In subsequent years, it is expected that government’s expenditure in the social sphere will be reduced and accumulated in organizing programs with expected results. Priority will be given to those social enterprises that use effective models of monetization of social influence, which lead to the consolidation of social businesses. The government should clearly identify what social enterprises need and what social tasks they will solve. The qualitatively new level of development for social entrepreneur- ship will depend on the establishment of inter-sectoral cooperation by key partners such as: government authorities and local governments (regulatory support, the main mechanism of financial support); business (mentoring, grant support); media (promotion of activities); the educational institutions (social entrepreneurship training course) and public organizations (working directly with the public with the purpose of
clarifying the value of key principles of social enterprises).”