Financing of Social Entrepreneurship

  • Wolfgang Spiess-Knafl
  • Ann-Kristin Achleitner


Learning goals

Upon completing this chapter, you should be able to accomplish the following:
  • Describe the characteristics of the financing structure of social enterprises.

  • Explain the financing instruments available for social enterprises.

  • Describe the financing institutions in the social capital market.

  • Explain the trade-off between social and financial return.


Social Enterprise Initial Public Offering Social Entrepreneurship Equity Capital Social Entrepreneur 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Further Reading

  1. [1]
    Achleitner, A.-K., Heinecke, A., Noble, A., Schöning, M. and Spiess-Knafl, W. (2011) "Social Investment Manual", online:
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    Fama, E.F. and Jensen, M.C. (1983), "Agency problems and residual claims", in Journal of Law and Economics, vol. 26, no. 2, pp. 327–349.CrossRefGoogle Scholar
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    Fedele, A. and Miniaci, R. (2010), "Do Social Enterprises Finance Their Investment Differently from For-profit Firms? The Case of Social Residential Services in Italy", in Journal of Social Entrepreneurship, vol. 1, no. 2, pp. 174–189.CrossRefGoogle Scholar
  4. [4]
    Fischer, R.B., Wilsker, A.L. and Young, D.R. (in press), "Exploring the Revenue Mix of Nonprofit Organizations: Does it Relate to Publicness" in Nonprofit and Voluntary Sector Quarterly, online:, accessed date: 06/05/2011.
  5. [5]
    Foster, W. and Fine, G. (2007), "How Nonprofits Get Really Big", in Stanford Social Innovation Review, Spring 2007. pp. 46–55.Google Scholar
  6. [6]
    Jäger, U. (2010), Managing Social Businesses - Mission, Governance, Strategy and Accountability, Palgrave Macmillan, Houndmills, New York.Google Scholar


  1. [1]
    Achleitner, A.-K., Heister, P. and Spiess-Knafl, W. (2010), "Venture Philanthropy und Sozialunternehmertum", in Hoelscher, P., Ebermann, T. and Schlüter, A. (eds.), Venture Philanthropy in Theorie und Praxis, Lucius & Lucius, Stuttgart, pp. 81–89.Google Scholar
  2. [2]
    Achleitner, A.-K., Spiess-Knafl, W. and Volk, S. (2011), "Finanzierung von Social Enterprises - Neue Herausforderungen für die Finanzmärkte", in Hackenberg, H. and Empter, S. (eds.), Social Entrepreneurship - Social Business: Für die Gesellschaft unternehmen, VS Verlag, Wiesbaden, pp. 269–286.CrossRefGoogle Scholar
  3. [3]
    Bolton, E. and Savelle, L. (2010), "Towards a new social economy - Blended value creation through social impact bonds", online:, accessed date: 06/05/2011..
  4. [4]
    Carrick-Cagna, A.-M. and Santos, F. (2009), "Social vs. Commercial Enterprise: The Compartamos Debate and the Battle for the Soul of Microfinance", online:, accessed date: 06/05/2011.
  5. [5]
    CIC Regulator (2010), "Information Pack", online:, accessed date: 06/05/2011.
  6. [6]
    Dialogue Social Enterprise (2011), "What do we do?", online:, accessed date: 06/05/2011.
  7. [7]
    European Venture Philanthropy Association (EVPA) (2010), "European Venture Philanthropy Directory 2010/2011", online:, accessed date: 06/05/2011.
  8. [8]
    Heister, P. (2010), Finanzierung von Social Entrepreneurship durch Venture Philanthropy und Social Venture Capital, Wiesbaden.Google Scholar
  9. [9]
    John, R. (2006), "Venture Philanthropy - The Evolution of High Engagement Philanthropy in Europe", online:, accessed date.
  10. [10]
    Letts, C., Ryan, W. and Grossman, A. (1997), "Virtuous Capital: What Foundations Can Learn from Venture Capitalists" in Harvard Business Review, vol. 75, no. 2, pp. 36–44.Google Scholar
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    Palandjian, T. (2010), "Investing for impact: Case studies across asset classes", online:, accessed date: 06/05/2011.
  12. [12]
    Sargeant, A., Lee, S. and Jay, E. (2009), "Communicating the "Realities" of Charity Costs: An Institute of Fundraising Initiative", in Nonprofit and Voluntary Sector Quarterly, vol. 38, no. 2, pp. 333–342.CrossRefGoogle Scholar
  13. [13]
    Schwartz, R. (2006), "Profit taboo in social enterprise country?", in Alliance, vol. 11, no. 3, pp. 31–32.Google Scholar

Copyright information

© Gabler Verlag | Springer Fachmedien Wiesbaden 2012

Authors and Affiliations

  • Wolfgang Spiess-Knafl
    • 1
  • Ann-Kristin Achleitner
    • 1
  1. 1.KfW Endowed Chair in Entrepreneurial Finance Center for Entrepreneurial and Financial Studies (CEFS)Technische Universität MünchenMünchenGermany

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