Social entrepreneurship mechanisms for systems change: A structuration approach

Abstract

Persistent social and environmental challenges require social entrepreneurs to work towards systems change, which is defined as fundamental shifts in social processes, practices, and structures. However, we do not understand well why some social entrepreneurs achieve systemic changes, while others fail to do so. In particular, we do not know which mechanisms help social entrepreneurs produce systemic transformations in society. This article advocates for harnessing Giddens' structuration theory to improve our understanding. I develop a structuration model of systems change through social entrepreneurship, which shows that connected modalities , that is, intricate combinations of (1) interpretative schemes, (2) resources, and (3) norms, act as the key mechanisms that enable systemic effects. I argue when social entrepreneurs mobilize connected modalities, they can realize high integrativeness, i.e., cover a wide variety of interconnected issues and trigger shifts at different societal levels. Connected modalities also enable high inclusiveness, i.e., unify a wide diversity of stakeholders. Both elements are needed to achieve systems change. I support the model's development with illustrations from research on social entrepreneurship with and without a systemic character. Thereby, I alter how we think about social entrepreneurship and effective ways of supporting it when the aim is to generate systems change. Executive summary Persistent social and environmental challenges are affecting the world. We tend to assume social entrepreneurs help address them and promote so-called systems change. Systems change means creating fundamental shifts in social processes, practices and structures so that problems are prevented or new kinds of lasting and major solutions surrounding those problems can emerge. Unfortunately, we do not understand well why some social entrepreneurs achieve systemic changes, while others fail to do so. Especially, we lack knowledge about which mechanisms help social entrepreneurs produce systemic transformations in society. This article uses Anthony Giddens' structuration theory to develop an explanation. It introduces the theoretical idea of connected modalities . These are close and strong combinations of new (1) ideas, mindsets or imaginations, (2) resources, and (3) norms and values. When combining these modalities, that is, different ways of acting within society, social entrepreneurs can realize high integrativeness . This means they can affect several societal fields, industries, or issues at the same time. Combining modalities also helps social entrepreneurs achieve high inclusiveness . This means they can activate and work with many different stakeholders. Both elements are needed to achieve systems change. Research about microfinance underpins my arguments. Microfinance achieved systems change not primarily because it was a commercially successful product but because it triggered changes in various social sub-systems—ranging from banking to national government regulations to development assistance. It did so by establishing the new idea that poor people were bankable, by mobilizing resources across the philanthropic and business sectors, and by establishing a new social norm of empowerment in poverty alleviation. I discuss other cases that were not able to connect modalities in the same way and therefore faced restrictions in promoting systems change. The approach proposed in this article thus changes how we think about social entrepreneurship and effective ways of supporting it, when the aim is to generate systems change. In particular, it encourages more support for entrepreneurs in creating and applying connected modalities to cover various issue areas and mobilize diverse stakeholders, instead of mimicking the incubation practices of its commercial counterpart. While these are important for creating viable organizations, established practices will not be sufficient for changing systems fundamentally.