Purpose
The purpose of this paper is to address the question of how social entrepreneurs achieve the desired impact-based model of business.
Design/methodology/approach
Qualitative research design included semi-structured in-depth interviews with entrepreneurs of three Chilean Tourism B Corporations (B Corps), participant observation of the Latin American B Movement, and print, digital and social media clippings.
Findings
This research unearths the practices by which entrepreneurs implement their aspirations of balancing profit and social impact obligations within their business models.
Research limitations/implications
Though an intentional sample is not representative in quantitative terms, the employed research design allowed the authors to deepen the understanding of the processes which are taking place in Chile, Latin America, and on the Global scale. The authors concluded that social benefit commitment guides innovation in business models of Chilean entrepreneurs seeking to have a broader positive impact on vulnerable communities and the society at large.
Practical implications
This research shows that traditional businesses have the possibility of hybridizing management, combining the necessary organization that defines its mission with social or environmental purposes. The latter is likely to open up new markets for traditional businesses.
Social implications
Social entrepreneurship is the principal means for new generations of entrepreneurs to make changes in businesses and in vulnerable local communities through global aspirations. But the need for more open political discussion within the B Movement is clear, especially regarding the nexus between the “negative externalities” of the traditional economy and social or environmental problems which the B Corps intend to solve. Such debate would allow companies and the movement to more easily identify new courses of action.
Originality/value
This study gives account of regional nuances of social entrepreneurship and social innovation phenomena. In particular, there has been a surge of impact-oriented rather than profit-oriented innovation initiatives in neoliberal-oriented Latin American states, such as Chile. These initiatives offer us a wealth of empirical information about the development of alternative business models.
