Exploring the growth challenges of social enterprises: Identifying staffing, earnings-generation and communications as critical success factors

How best to support the sustainability and growth of social enterprises is important to multiple stakeholders (Cavusgil & Knight, 2015; Thompson, Mawson & Martin, 2017). Evidence
highlights that social enterprises struggle to scale-up, as reflected by a majority of UK-based social enterprises failing to breakeven. This research studies over one hundred social enterprises to explore the reasons for ineffective scaling and to identify where the priorities and challenges lie in achieving success. Recent literature and the Bloom & Smith (2010) SCALERS model (Staffing; Communicating; Alliance-building; Lobbying; Earnings-generation; Replicating; and Stimulating market forces) are used to determine key issues. The findings indicate that the effective scaling and impact (Kim, 2015) of social enterprises is reliant on three critical success factors: Staffing; Earnings generation; and Communications. Social enterprises need to optimise the recruitment and deployment of employees and volunteers, bearing in mind that they are essential for the replication of successes and in building alliances with networks of stakeholders (Stam, Arzalanian & Elfring, 2014). A robust earnings generation model is essential and may require the development of innovative income streams. Effective staff and robust finances helping establish strong coalitions, joint-ventures and partnerships across the stakeholder spectrum.