Interaction between social enterprises and key actors shaping the field: experiences from the social and health sectors in Hungary

Abstract

Purpose: In Hungary, similarly to other Central and Eastern European states, the concept of social enterprise has attracted increased attention in recent years, and certain key actors shaping the organizational field have emerged. This growing interest is due in large part to the availability of EU funds focusing primarily on the work integration of disadvantaged groups, but ignoring other possible roles of social enterprises. The present research focuses on a not widely examined and funded area, it analyzes the institutional environment and organizational activities of social enterprises in the social and health sectors. Design/methodology/approach: Based on neoinstitutional theory, the paper utilizes desk research as well as qualitative case studies presenting the experiences of social enterprises providing social and health services for specific disadvantaged social groups. Findings: The research identified the key actors influencing the everyday operation of social enterprises; and examined the connections, interactions and partnerships between them. Based on the findings, social enterprises are mostly dependent on the central state and local public social and health institutions, while their partnerships with local governments, private customers, networks, development organizations and for-profit enterprises are less decisive. The key actors have relevant impact on the legal form, main activities, as well as financial and human resources of the social enterprises. Originality/value: The paper contributes to understanding the opportunities and barriers of social enterprises in Hungary and more generally in Central and Eastern Europe, especially regarding their place in social and health services.