Factors Influencing the Sustainability of Social Enterprises in Korea: Application of the QCA Method

Abstract

The unemployment rate is not improving in Korea, income disparity between the rich and the poor is growing, and a high percentage of young university graduates have no jobs (the employment rate is approximately 58% as of 2014). Demands by ordinary people for employment and for more social welfare are getting strong and serious. Against this background, social enterprises in Korea began as a means of solving the problem of unemployment among vulnerable social groups, in particular and expanding the supply of social services. Since 2007 when The Social Enterprise Promotion Act that was established, the number of social enterprises has been constantly increasing at a slow but steady rate, and as of December 2014 there were 1251 in total. However, criticisms have been made as to the sustainability of social enterprises for failing to continue operation, or reducing in size once the benefits and government aid they receive as certified enterprises come to an end. This paper aims to investigate the factors influencing the sustainability of social enterprises in Korea, and to put forward theoretical and policy implications on how to enhance the sustainability of social enterprises.