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Journal of Business Ethics

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01-12-2012

A Positive Theory of Social Entrepreneurship

Author: Filipe M. Santos

Published in: Journal of Business Ethics | Issue 3/2012

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Abstract

I propose a theory aimed at advancing scholarly research in social entrepreneurship. By highlighting the key trade-off between value creation and value capture and explaining when situations of simultaneous market and government failure may arise, I suggest that social entrepreneurship is the pursuit of sustainable solutions to neglected problems with positive externalities. I further discuss the situations in which problems with externalities are likely to be neglected and derive the central goal and logic of action of social entrepreneurs, in contrast to commercial entrepreneurs. Overall, this article provides a conceptual framework that allows understanding the growing phenomena of social entrepreneurship and its role in the functioning of modern society.

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For example, the European Venture Philanthropy Association counts more than 100 Funds as members.

Indeed, there is increasing empirical evidence that a narrow focus on self-interest does not capture well the motivations and behavior of economic actors. For example, research on marketing as shown that people are happier when they spend money on others than on themselves (Dunn et al. 2008).

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Title: A Positive Theory of Social Entrepreneurship
Author: Filipe M. Santos
Publication date: 01-12-2012
Publisher: Springer Netherlands
Published in: Journal of Business Ethics / Issue 3/2012
Print ISSN: 0167-4544
Electronic ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-012-1413-4

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Other articles of this Issue 3/2012

Social Entrepreneurship in Theory and Practice—An Introduction

Organizing for Society: A Typology of Social Entrepreneuring Models

Social Entrepreneurs as Responsible Leaders: ‘Fundación Paraguaya’ and the Case of Martin Burt

Collective Social Entrepreneurship: Collaboratively Shaping Social Good

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A Tale of Two Cultures: Charity, Problem Solving, and the Future of Social Entrepreneurship