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How are Swedish social entrepreneurs financing theirbusinesses? A survey of Swedish social entrepreneurs’access to funding
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Entrepreneurship and innovation.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Social entrepreneurship and related concepts have received an increasing amount ofattention during the last years. Social entrepreneurship is characterized by ventureswith a social mission, seeking to address societal challenges and needs. The socialgoal is the primary goal of the business activities whereas generating economic profitis not the main objective, yet still possible. Social entrepreneurship is often seen as apowerful tool for creating sustainable development, a fundamental goal of manybusinesses, countries and organizations today. Just like any other firm, socialentrepreneurs need finance in order to exist. This thesis seeks to examine howSwedish social entrepreneurs finance their businesses. A questionnaire was sent out toSwedish social entrepreneurs and the results suggest that Swedish socialentrepreneurs to a large extent rely on governmental funds and support, personalresources and internally generated capital. Access to the traditional banking systemseems to be limited compared to traditional entrepreneurs. There seems to be a gapbetween the demand and supply of external capital since the majority of therespondents believe that they have a limited access to external capital. 60 per cent ofthe respondents reported a positive economic result in the last fiscal year.Furthermore, the majority of the respondents want to expand their businesses in thefuture but the largest obstacles seem to be lack of financing and political aspects. Therespondents hope for, among other things, an improved attitude towards socialentrepreneurship in general, more financing and increased collaboration with Swedishmunicipalities. Altogether the results highlight the role of the government insupporting and promoting this type of firms in Sweden.

Place, publisher, year, edition, pages
2016. , 75 p.
Keyword [en]
Social entrepreneurship, work integration social enterprises (WISE), entrepreneurship, Schumpeter, sources of financing, funding, Sweden
National Category
Economics and Business
URN: urn:nbn:se:kth:diva-189559OAI: diva2:946865
Available from: 2016-07-11 Created: 2016-07-06 Last updated: 2016-07-11Bibliographically approved

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