Social enterprise as a tool to promote economic development in underserved communities in Cape Town, South Africa

Abstract

Despite the growing value and popularity of social entrepreneurship, an accepted definition remains elusive. It is imperative that the principles guiding social entrepreneurship are identified so that common ground is established to facilitate future research. On the basis of a systematic literature review, this conceptual paper proposes a theoretical framework outlining social entrepreneurship as a tool to promote social enterprise in an underserved community in Cape Town, South Africa. The resultant structures and functions of social entrepreneurship are shaped by these constraints as reflected by the flexibility recognised by the framework. Social entrepreneurship is well practiced and talked about in emerging economies. However, to date, no dedicated review and conceptual framework exists, creating and integrating past social entrepreneurship research in the fast-growing emerging economies such as South Africa. This study focusses primarily on the meaning of social entrepreneurship to different fields, considering where it stands in respect to other forms of entrepreneurship today. The study aimed to answer two primary research questions, formulated as follows: i) What are the factors affecting the role of social entrepreneurship in the promotion of economic development in underserved communities in Cape Town, South Africa? ii) How can social enterprises promote economic development in underserved communities in Cape Town, South Africa? The study intends to explore the role of social enterprises (SEs) in promoting economic development of underserved communities in Cape Town, South Africa. It also aims to explore the challenges SEs face in underserved communities. A semi-structured interview guide with a qualitative research method was used for this study of 15 suitable, non-randomly and purposively selected SEs in Cape Town. An inductive research approach was employed to collect data through semi-structured interviews conducted with founders of the businesses. Data were decoded using keywords and analysed using a descriptive data analysis method to formulate the findings. First, this study explores the role of SEs in promoting economic development of underserved communities in Cape Town, South Africa. Secondly, it explores the challenges SEs face in underserved communities. The study contributes both practically and theoretically to the current body of knowledge as it was required to provide insights i) of the role of SEs in communities, and ii) the growth of SEs.