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INNOVATIONS IN MANAGEMENT OF SOCIAL ENTERPRISES

Publication at Faculty of Humanities |
2016

Abstract

This paper deals with the issue of social entrepreneurship and the introduction and implementation of HR processes in these companies. Social entrepreneurship is the center of attention lately in the world.

Social enterprises are becoming a tool of solving social problems and provision of public services. Businesses are businesses that combine market incentives, values and practices with social objectives and profit motivations and practices.

Among the advantages of social enterprises include the ability to seek innovative solutions to social problems at the intersection of profit and non-profit world or the ability to conveniently combine sales with grants, subsidies, donations and volunteering. The mixed nature of social enterprises makes demands on their management, to reconcile care for employees and volunteers.

Therefore, in terms of long-term sustainability of important social enterprises correctly implement best HR processes. Pressure to generate profit, the introduction of market mechanisms and values, but also a growing bureaucracy in connection with the grant programs and the growing need for accountability may lead to incompatibility of social enterprise and volunteering.

The mixed nature of social enterprises can create tensions between democratic, participatory governance and the requirements of efficient business management or stress caused by the current involvement of volunteers and paid staff. This paper is based on the qualitative research among Czech social enterprises.

Its output is compared to practice the use of HR processes within the Czech social entrepreneurship and comparison with the practice of profitable companies.