Short answer

When designing for social impact, consider the broader ecosystem and actively seek partnerships with state, civil society, and private entities to navigate regulatory hurdles and secure funding.

Field: Innovation & Markets
Source: Journal of the Knowledge Economy (2023)
Method: Qualitative case study with in-depth interviews.
Sample: 20 participants
Evidence: Moderate effect

Strategic state involvement, in collaboration with civil society and private sector actors, is crucial for cultivating an environment conducive to social entrepreneurship and impact investing. This innovation & markets research insight is drawn from a 2023 study published in Journal of the Knowledge Economy. Using Qualitative case study with in-depth interviews. with 20 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing for social impact, consider the broader ecosystem and actively seek partnerships with state, civil society, and private entities to navigate regulatory hurdles and secure funding.

Study

Innovation & MarketsRecentModerate effect

State intervention can foster impact investing ecosystems by aligning diverse stakeholders.

Strategic state involvement, in collaboration with civil society and private sector actors, is crucial for cultivating an environment conducive to social entrepreneurship and impact investing.

Journal of the Knowledge Economy · 2023

Key Findings

01The state faces challenges in mobilizing private sector resources for social impact initiatives.
02Social entrepreneurs encounter difficulties in meeting regulatory and supplier selection criteria.
03Intermediaries play a role in simplifying complexities but struggle to establish their position within the ecosystem.
04Social entrepreneurship and innovation are most effective when embedded within local contexts and responsive to local demands.

Application

Design takeaway

When designing for social impact, consider the broader ecosystem and actively seek partnerships with state, civil society, and private entities to navigate regulatory hurdles and secure funding.

How to apply

When developing a new social enterprise or impact investment fund, map out the key stakeholders and potential points of collaboration or friction within the existing ecosystem.

Project actions

01When researching a new market, consider the role of government and existing support structures.
02Identify potential partners and stakeholders who can help your design project succeed.

Method & Evidence

AimHow can state intervention, in conjunction with civil society and private sector actors, effectively facilitate the emergence of an impact investing field to support social entrepreneurship and innovation?

MethodQualitative case study with in-depth interviews.

ProcedureConducted 20 in-depth interviews with key stakeholders in Portugal's impact investing field, including representatives from the private sector, government, NGOs, and EU authorities. Analyzed the resulting ecosystem using institutional theory and an inductive approach to develop a process-based model.

Sample20 participants

ContextSocial entrepreneurship and impact investing in Portugal.

Variables

IVState intervention, collaboration between actors (private sector, government, NGOs, EU authorities).

DVEmergence of impact investing field, conditions for social entrepreneurship and social innovation.

CVLegal requirements, supplier selection criteria, role of intermediaries.

Strengths & Limitations

Strengths

+In-depth qualitative data provides rich insights into complex interactions.
+Focus on a specific case study allows for detailed analysis of ecosystem dynamics.

Limitations

The study focused on one country, so the specific challenges and solutions might differ in other regions.

Reliability & validity

The study's validity is enhanced by using multiple stakeholder perspectives. Reliability could be improved by using more standardized interview protocols across all participants.

Think critically

To what extent can state intervention truly drive innovation, or does it risk stifling organic growth and local adaptation?

Design Principles

"Ecosystemic Design: Design solutions that acknowledge and integrate with the surrounding social, economic, and regulatory environment."

Understanding the dynamics of ecosystem development is vital for designers and innovators aiming to launch or scale social impact ventures. This research highlights the critical role of coordinated efforts in overcoming systemic barriers and facilitating the flow of resources and support.

What This Means for Your Design

Governments can help social businesses grow by bringing together different groups like businesses, charities, and investors, but it's hard to get everyone to work together and meet the rules.

How to use in your project

1.Use this research to justify the need for a specific stakeholder engagement strategy in your design project.

Add to My Project

Quick Cite

Paragraph starter

This research highlights the critical role of state intervention and multi-stakeholder collaboration in fostering impact investing ecosystems. The findings suggest that successful development requires addressing challenges faced by social entrepreneurs in meeting regulatory and supplier demands, and supporting intermediaries in their role. Therefore, any design project aiming to contribute to social innovation must consider the broader ecosystem and actively engage with relevant actors to ensure viability and impact.

Source

Journal of the Knowledge Economy

An Ecosystem for Social Entrepreneurship and Innovation: How the State Integrates Actors for Developing Impact Investing in Portugal

journal · 2023

View source

Questions About This Research

What does the research say about state intervention can foster impact investing ecosystems by aligning diverse stakeholders?: When designing for social impact, consider the broader ecosystem and actively seek partnerships with state, civil society, and private entities to navigate regulatory hurdles and secure funding. Evidence: Journal of the Knowledge Economy (2023).
Why does "State intervention can foster impact investing ecosystems by aligning diverse stakeholders." matter for design?: Understanding the dynamics of ecosystem development is vital for designers and innovators aiming to launch or scale social impact ventures. This research highlights the critical role of coordinated efforts in overcoming systemic barriers and facilitating the flow of resources and support.
How can designers apply this research?: When designing for social impact, consider the broader ecosystem and actively seek partnerships with state, civil society, and private entities to navigate regulatory hurdles and secure funding.
What were the main findings?: The state faces challenges in mobilizing private sector resources for social impact initiatives.. Social entrepreneurs encounter difficulties in meeting regulatory and supplier selection criteria.. Intermediaries play a role in simplifying complexities but struggle to establish their position within the ecosystem.. Social entrepreneurship and innovation are most effective when embedded within local contexts and responsive to local demands.
What research method was used?: Qualitative case study with in-depth interviews. with 20 participants.
How strong is the evidence?: Evidence strength is rated Moderate effect, based on a 2023 journal from Journal of the Knowledge Economy.
What should I do differently in my next project?: When developing a new social enterprise or impact investment fund, map out the key stakeholders and potential points of collaboration or friction within the existing ecosystem.
What are the limitations?: The findings are specific to the Portuguese context and may not be directly generalizable to all impact investing ecosystems.