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Social entrepreneurship literature emphasizes the creation of social value for society from three main concepts – generation, appropriation and devolution - that form a value cycle. This paper aims to analyse how social enterprises operationalize this cycle to create positive social impact.

This study uses a multi-case approach, conducting semi-structured interviews with founders of Brazilian social enterprises.

This study empirically supports the existence of the value cycle and identifies an additional stage –value transformation – emerging from the data. While the initial three stages occur within social enterprises, value transformation unfolds within served communities. This stage not only facilitates the conversion of value types (e.g. social to economic or environmental) but also stimulates the formation of new social enterprises. Consequently, this paper proposes a comprehensive social entrepreneurship value cycle encompassing generation, appropriation, devolution and transformation of value.

This paper contributes to clarifying concepts and mitigating theoretical ambiguities surrounding social value creation in the context of social entrepreneurship. It provides a framework for understanding the underlying principles of each stage in the value cycle, thereby empowering scholars and practitioners to enhance the innovative mission of social enterprises and drive social change within underserved communities.