A Model of Emergence of Autonomous Social Entrepreneurial Ventures

Abstract

Social-purpose entrepreneurs face issues of survivability and scale in the nonprofit sector, challenging them to operate market-driven ventures without deviating from their social goals. Many entrepreneurs, unable to balance these imperatives, fail, while others succeed and thrive. What "success factors" characterize the emergence of survivors, but do not develop adequately in the failures? The data from 23 nascent ventures revealed a four-stage model of emergence with progressive critical success factors on which the successful, struggling and failed ventures could be placed. While effective execution of tasks and activities at each stage helps secure incremental legitimacy with stakeholders – a key determinant of successful emergence – ineffective execution results in loss of legitimacy, venture regression and potential mortality.