By addressing social issues, rather than maximizing profits, social enterprises are said to contribute to the well-being of societies. In this paper, we test whether social enterprises fulfil this expectation. The paper applies regression analysis to a unique dataset obtained by merging survey data from the Global Entrepreneurship Monitor with official statistics on social enterprises in Luxembourg. Results suggest that social enterprises contribute to subjective well-being, which is an encompassing measure of people’s satisfaction with their own life. We find that when the share of social enterprises in a city increases, the ill-being of poor and unemployed people declines. Therefore, policy makers who seek to increase the well-being of economically disadvantaged people could adopt policies to promote the creation of social enterprises.
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As suggested by the name, this ministry takes care of activities within solidarity economy as well, which may be intended as a subset of the social economy. Activities within the solidarity economy pursue social goals with the purpose of questioning and transforming the society, as well as by reducing social injustices (Utting et al. 2014). For instance, while an amateur soccer club is part of the social economy, an amateur soccer club for refugees is part of the solidarity economy (e.g. the Italian team Liberi Nantes, which is composed of African refugees). In this paper, we focus on social enterprises within the more general social economy.
Possible legal forms are cooperative, non-profit organization, charitable organization, fraternal benefit organization, mutual insurance association, cultural association and sports association.
Possible overlapping social enterprises are considered only once.
The authors are thankful to an anonymous reviewer for raising this point.
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The authors wish to thank Andréa Gosset for her precious contribution on an earlier version of this work, and acknowledge the financial support of the Observatoire de la Compétitivité, Ministère de l’Economie, DG Compétitivité. F. Sarracino: Russia (LCSR Russian Government Grant #11.G34.31.0024 from November 28, 2010).
This article does not contain any studies with human participants performed by any of the authors.
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Sarracino, F., Fumarco, L. Assessing the Non-financial Outcomes of Social Enterprises in Luxembourg. J Bus Ethics 165, 425–451 (2020). https://doi.org/10.1007/s10551-018-4086-9
- Social enterprises
- Subjective well-being
- Non-economic outcomes