SOCIAL ENTERPRISES IN UK AND ITALY: RESOURCE MIX AND LEGAL FRAMEWORK ANALYSIS

In the recent decades researchers have focused their attention on the increasing importance of the social company which can be considered a hybrid between the traditional business and not for profit sector (Davis, 1997). This relatively new type of venture has assumed the social mission as the leading pillar in its value creation process, incorporating business practices in order to obtain more efficiency in resource utilization. This relatively new type of venture has assumed the social mission as the leading pillar in its value creation process, incorporating business practices in order to obtain more efficiency in resource utilization. Government has recognized the comparative advantage of social enterprises in the provision of certain services. This resulted in the establishment of more institutional arrangements and regulations that aimed at legally defining community businesses role in the society and providing more incentives for future development. As any other enterprises, social companies are concerned with and thus put an uttermost importance on the access to financial and non-financial resources that would enable future development. Resource mix defines the flexibility of an enterprise and proper financial management is essential for sustainability of the social enterprise. Resource mobilization ranges from financial grants and subsidies provided mainly by government in support of the social enterprise mission, to income generating trading activities that facilitate self-sufficiency and independence from the public aid and extend further to include non-financial resources such as volunteering. The scientific publications tend to be more descriptive and only briefly mention on the interrelation between the legal environment and resource mix mobilization. The paper addresses this gap. It aims at combining the available knowledge and introducing a more explicit structure of social enterprise`s resource mixes within which such interactions and their effects can be analyzed. It aims at identifying the main channels through which the institutional environment affects resource mixes utilization within social enterprises, with a focus on Italy and UK.