Towards a classification framework for social enterprises
Denise Crossan, Jim Bell, Pat Ibbotson
School of International Business and School of Business, Retail and Financial Services, University of Ulster
Contact Email:   Crossan-D1ulster.ac.uk

The concept of the social economy has been used for many centuries and is said to have occurred in the earliest farming co-operatives in Ireland and Central Europe. However, to those looking at the subject afresh, it would appear as if it is a more recent discovery and in particular within the last 4 years has become the means by which governments, in the UK in particular, might find an answer to the issues of social exclusion, disadvantage and more sceptically, reduce long term public spending in key areas of health, transport and unemployment.

The paper attempts to review this issue and address the following questions:
1. Is there a continuum of practice between the community and voluntary sector, the social economy sector and the private sector in Ireland?
2. Can social enterprises and private enterprises be classified along the continuum using identified variables?
3. Could such a classification inform government policy makers as to the type, duration and mechanisms of suitable support for the sustainability and development of social enterprises in the future?
4. What economic advantages can social enterprises learn from adjacent private enterprises on the continuum and vice versa?

The paper consists of a review and definition of the social economy sector in the UK and Ireland. This is followed by a review of the current continuum literature and a summary of the reviewed models, such as Billis (2003), Stull (2003), and Paton (2003) and the current classification study being undertaken by the Stanford Project on Emerging Nonprofits, Stanford’s Centre for Social Innovation, USA.

Following this review the authors present a draft Classification Framework for Social Enterprises in Ireland (Crossan (2004)), discussing the 4 stage typologies within the Framework. The Classification Framework has significant implications in Ireland and potentially further afield, as it allows for the definition and positioning of enterprises along a continuum of social and commercial activity spanning from wholly not for profit activity to entirely profit driven organisations. The Framework allows policy makers to target assistance along the Framework and also facilitates opportunities for knowledge transfer between not for profit and profit driven businesses.

The paper illustrates the Framework using relevant case studies located in the border area of County Derry and County Donegal

Paper Download Information (if available):

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