Financing Social Enterprises Serving Base-of-the-Pyramid Markets: Towards an Integrative Financing Model

Abstract

Social enterprises grapple with accessing external funds, a predicament linked to organisational failures. Anchored in resource dependence theory and financial growth cycle theory, this qualitative investigation employs multiple case studies, using primary and secondary data sources to examine how social enterprises serving base-of-the-pyramid markets can blend diverse sources to address financing pitfalls. The findings underscore the significance of not only external financing but also internal capability enhancement. The study consequently introduces an integrative financing model and proposes amalgamating of three major theories as enablers for social enterprises to synergize the acquisition of external financing with growth phases and internal capabilities.