Endogenous vs. Exogenous drivers in the development of a social enterprise sector

Abstract

This chapter discusses the role that endogenous and exogenous factors play in the constitution of a contemporary national sector of social enterprise (SE). A recent research report reveals that, in European countries, the SE sector has reached different levels of development in terms of number and activities of social enterprises; legal and institutional framework; networking/partnerships; financial instruments/incentives; and awareness of social entrepreneurship. The development path of the SE sector can generally be split into three stages: the initial stage; the institutionalisation stage; and the sustainability stage. The transition from the initial to the institutional stage is very much based on the capacity of the actors involved, and primarily that of social entrepreneurs. Different dimensions and elements of social entrepreneurship, as well as different types of association and foundation, have been present in Armenia for a long time.