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Profit with purpose? A theory of social enterprise

Besley, Timothy and Ghatak, Maitreesh ORCID: 0000-0002-0126-0897 (2017) Profit with purpose? A theory of social enterprise. American Economic Journal: Economic Policy, 9 (3). pp. 19-58. ISSN 1945-7731

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Identification Number: 10.1257/pol.20150495


When social benefits cannot be measured, an organization that selects managers based on pro-social motivation can be used to balance profits with a social purpose. This paper develops a model of social enterprise based on selection of citizen-managers to run firms with flexible missions. We analyze organizational choice between social enterprise, for-profits, and non-profits. The paper also develops the implications of matching between founders and managers based on their preferences for the mission.

Item Type: Article
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Additional Information: © 2016 American Economic Association
Divisions: Economics
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Date Deposited: 08 Dec 2016 14:56
Last Modified: 18 Jul 2024 05:21

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