Business and Society 61 (1):3-44 (2022)

Abstract
Although early-stage finance is critical to the growth of most ventures, it is even more important for social ventures as they face the challenges of balancing their social and commercial objectives. Drawing on institutional logics and signaling theory, this study uses a panel data set of 3,401 nascent social ventures to investigate the important role philanthropic grant funding plays in the organizational and financial development of social ventures. We find mixed results, with positive effects on employment and subsequent access to debt finance, but no effects on revenues and access to equity. Our findings connect these theories by suggesting philanthropic grants provide social ventures with flexibility to invest in human capital without pushing them to pursue short-term financial objectives, and that receiving a philanthropic grant provides a signal that is interpreted differently by debt and equity financiers. These findings are especially relevant as funders increasingly use grants to support social entrepreneurship.
Keywords No keywords specified (fix it)
Categories No categories specified
(categorize this paper)
ISBN(s)
DOI 10.1177/0007650320973434
Options
Edit this record
Mark as duplicate
Export citation
Find it on Scholar
Request removal from index
Revision history

Download options

PhilArchive copy


Upload a copy of this paper     Check publisher's policy     Papers currently archived: 69,114
External links

Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library

References found in this work BETA

Stakeholder Influence Capacity and the Variability of Financial Returns to Corporate Social Responsibility.Michael L. Barnett - 2005 - Proceedings of the International Association for Business and Society 16:287-292.
Philanthropy as Strategy.A. Buchholtz, A. Carroll & D. Saiia - 2003 - Business and Society 42 (2):169-201.

View all 10 references / Add more references

Citations of this work BETA

No citations found.

Add more citations

Similar books and articles

A Model of Social Entrepreneurial Discovery.Patrick J. Murphy & Susan M. Coombes - 2009 - Journal of Business Ethics 87 (3):325-336.
A Positive Theory of Social Entrepreneurship.Filipe M. Santos - 2012 - Journal of Business Ethics 111 (3):335-351.
Social Entrepreneurship – Crossroads And Intersections.Denise Kleinrichert - 2016 - Proceedings of the International Association for Business and Society 27:96-100.

Analytics

Added to PP index
2021-12-08

Total views
3 ( #1,353,152 of 2,499,195 )

Recent downloads (6 months)
3 ( #209,823 of 2,499,195 )

How can I increase my downloads?

Downloads

My notes