Challenges of the Knowledge Society (Jun 2023)
FUNDING SOCIAL ENTERPRISES TO ADVANCE THE ACHIEVEMENT OF THE SUSTAINABLE DEVELOPMENT GOALS. THE CASE OF THE SOCIAL IMPACT BONDS
Abstract
Access to financial resources for SSE entities remains a relevant issue in the spotlight, as despite the emergence of several initiatives and schemes to address this problem, the search for appropriate types of funding is still ongoing. Specifically, the focus of this article will be on the study of SIBs (Social Impact Bonds) which are an innovative financing mechanism that has been more recently developed. It will analyse a type of financing that is conditional on the achievement of results, as well as the actors involved and its role as an innovative system for social enterprises, which overcomes the numerous obstacles that social enterprises often have been encountering when accessing finance. In order to achieve this objective, the article is divided into five sections. The first section, that is the theoretical background, will provide a discussion of the main approaches to social enterprise, aiming to reach a common understanding of the concept, address the role of these social entities in the SDGs and their financing needs. Then, the second part of the study will offer a framework for understanding as SIBs can be a tool for social enterprises. Finally, conclusions will be drawn about the innovative way of financing social enterprise initiatives represented by Social Impact Bonds.
