Key Factors for Success of Social Enterprises in Italy: Analysis of Financial and Operating Performance

Barbara Sveva Magnanelli (), Elisa Raoli () and Agnese Sacchi
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Barbara Sveva Magnanelli: Faculty of Economics, Universitas Mercatorum, Via Appia Pignatelli 62, 00178, Rome, ITALY
Elisa Raoli: Faculty of Economics, Universitas Mercatorum, Via Appia Pignatelli 62, 00178, Rome, ITALY

Review of Economics & Finance, 2016, vol. 6, 43-60

Abstract: Assessing social performance is one of the greatest challenges for practitioners and researchers in social entrepreneurship. Even though social enterprises (SEs) have the main goal of achieving social purposes, they should also be able to economically and financially survive to meet their aim and accomplish their tasks. To this purpose, we investigate if the key factors leading to the financial and operating performance are the same as those of for-profit firms, by using Italian data at a firm level during the period 2002-2013. We find that the standard financial and operating factors characterising for-profit firms¡¯ performance play a crucial role for SEs¡¯ results as well. Moreover, territorial and socio-economic variables seem to have a positive impact on financial performance. From a policy perspective, this may imply that further programs (e.g. safety-oriented and those promoting facilities in the territory) should be locally adopted to support the SEs¡¯ activity and development.

Keywords: Performance; Social enterprises; Territory-oriented mission; Italy (search for similar items in EconPapers)
JEL-codes: L31 L33 M20 (search for similar items in EconPapers)
Date: 2016
Note: Acknowledgments: The authors would like to thank Belinda Luke, (Queensland University of Technology, Brisbane, Australia), anonymous referees and the Editor for useful comments on a previous version of the paper. Special thanks are due to LUISS (¡°Guido Carli¡± University of Rome) Library for providing the economic, budgetary and financial data of social enterprises. The usual disclaimer applies.
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