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Research models for financing social business: theory and practice
Nurkhodzha Akbulaev1, Yusif Aliyev1, Turan Ahmadov1
1Azerbaijan State University of Economics (UNEC), Faculty of Turkish World Economics, Department of Economics and Business Administration, Baku, Azerbaijan.
Heliyon
|June 14, 2019
Summary
Securing investment is crucial for social enterprises. This study examines financing models to enhance competitiveness and living standards, advocating for investment transparency to foster a social financial market.
Area of Science:
- Social Sciences
- Economics
- Business Administration
Background:
- Social enterprises face challenges in accessing capital for sustainable operations.
- The distinction between social enterprises, charities, and traditional businesses is critical for targeted financial strategies.
- Global economic models for social entrepreneurship financing require theoretical and managerial examination.
Purpose of the Study:
- To analyze financing methods for social enterprises to improve service quality and living standards.
- To compare European and American models of social business financing.
- To explore theoretical and managerial aspects of social entrepreneurship financing models.
Main Methods:
- Literature review on social entrepreneurship development.
- Logical analysis, expert assessments, and comparative analysis.
- Systems analysis, synthesis, induction, deduction, and analogies.
Main Results:
- Government financial support for social enterprises is more prevalent in Europe than in the United States.
- Comparative analysis highlights differences between European and American social business financing models.
- Five tables present detailed results of the financing model comparisons.
Conclusions:
- Investment transparency and open accounting systems are vital for the future growth of social entrepreneurship.
- Establishing conditions for a dedicated social financial market is achievable.
- Enhanced financing strategies can bolster social enterprise competitiveness and societal impact.
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