Nascent Social Entrepreneurship: Economic, Legal, and Financial Framework

Abstract

In the past few decades a new way of responding to social and environmental problems has emerge: the social entrepreneurship. It is presented as a special type of venture, in which the creation of social value prevails over the maximization of profits. Thus, the main objective of these type of venture is to serve the community and to search for a positive social change. In this chapter, in addition to presenting the concept of social entrepreneurship within the so-called third sector and its various approaches, the main legal forms are also presented, from the cooperatives to the newest initiatives carried out in different countries. Likewise, the different sources of funding that can used by social entrepreneurs, especially business angels and crowdfunding, are detailed. Finally, new trends such as the bottom of the pyramid and the positive social change are addressed within social entrepreneurship.