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The learning outcomes of this paper is as follows: to structure the impact investing phenomenon and distinguish it from traditional investing or philanthropy, including the motivation of investors in impact investing projects; to analyse stakeholders in impact investing projects according to four main categories; to structure the implementation model of the theory of change in the context of impact investing; to build managerial decisions concerning the development of impact investing projects in crisis situations.

The case describes the development path of the Promprylad.Renovation project from its concept to the critical moment at the end of 2018. Yuriy Fyliuk – the case protagonist, acts as the main ideologist and leader of the project, the essence of which is the establishment of an innovation centre on the area of the old Promprylad plant in Ivano-Frankivsk. Impact investing was selected as the main project development tool, as it allows for attracting investors who share the aspiration for positive change of the city and potential financial benefit. The project is implemented in several stages as follows: partner involvement (Insha Osvita, MitOst, Pact Ukraine and LvBS), vision finalisation and research (together with Stanford Research Institute, Zotov & Co, FORMA Architects, Moris Group, etc.), the launch of the pilot floor (attracting more than $683,000 from allocated grants and more than $590,000 of private investments). Open equity crowdfunding and the purchase of the entire plant, with its subsequent renovation, should be the next stage. As of 2017, agreements have been reached to pay fully for the purchase of the plant by the end of 2019. After a successful pilot and lengthy negotiations, it was agreed that $1,000,000 should be paid by the end of 2018 and $2,000,000 by the end of 2019 to complete the buyout. However, as of the end of 2018, martial law was proclaimed in Ukraine. Hence, considering the risks, a major US investor refuses to contribute. The main dilemma is either to find a suitable solution to complete the buyout of the plant or to stop the project.

This case can be used in the master’s programmes of business schools (MBA, Executive MBA, Entrepreneurship, etc.), as well as in training programmes for public and state sector managers. The case study will be particularly useful for mixed groups with representatives from different sectors of the economy. This case study might be taught in the following disciplines: social entrepreneurship, social investing, leadership and crisis management. The subject of impact investing allows recognition of the benefits of combined cross-sectoral efforts over joint projects.

Teaching notes are available for educators only.

CSS 7: Management science.

This paper examines the case of Nashoba, a Tennessee-based social enterprise founded in 1824 by Scottish immigrant Frances Wright. The Nashoba venture intended to diminish the institution of slavery in the USA through entrepreneurial activity over its five years of operation.

This study methodology entailed mining primary source data from Wright’s letters; communications with her cofounders and contemporaries; and documentations of enterprise operations. The authors examined these data using social enterprise theory with a focus on personal identity and time-laden empirical aspects not captured by traditional methodologies.

The social enterprise concept of a single, self-sustaining model generating more than one denomination of value in a blended form has a deeper history than the literature acknowledges. As an entrepreneur, Wright made strategic decisions in a context of supply-side and demand-side threats to the venture. The social enterprise engaged injustice by going beyond market and state contexts to generate impact in the realms of institutions and non-excludable public goods.

This study generates two formal implications for the development of new research questions in social enterprise studies. The first implication addresses the relation between social entrepreneurs and their constituencies. The second implication pertains to the effects of macro-level education, awareness and politics on social enterprise performance and impact. The implications herald new insights in social enterprise, such as the limits of moral conviction and the importance of social disruption.

This paper broadens the current understanding of how social enterprises redress unjust and unethical institutions. It also contributes new insights into social enterprise launch and growth based on shared values within communities and coordinated strategic intentions across communities.

Social enterprises are defined in practice in terms of one operational model generating measurable value in more than one of the economic, social and natural/ecological value denomination categories. However, entrepreneurship theory does not generally or explicitly reflect this definition, which has generated confusion about the social enterprise concept. The purpose of this paper is to contribute to social enterprise theory by delineating novel aspects of this definition and their conceptual ramifications.

The authors review the social enterprise literature with a focus only on the most original contributions and most distinct research questions. The authors do not explicitly review research on traditional for-profit entrepreneurial ventures, not-for-profit/non-governmental organizations or mainstream social entrepreneurial ventures.

The authors offer several implications for social enterprise theory based on practices that are unique to the area but not amenable other areas of entrepreneurship. The contribution is instrumental to establishing social enterprise as a distinct theoretic area.

By focusing on novel aspects of social enterprise not easily explainable by mainstream theoretic traditions, the authors offer an original contribution to the development of social enterprise theory.