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Social entrepreneurship – a guideline to financing : a study of social venture financing in Norway

Øyasæter, Jørgen
Master thesis
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URI
https://hdl.handle.net/11250/2679493
Date
2020
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  • Master Thesis [3258]
Abstract
In Norway, as well as the rest of the world, the field of social entrepreneurship is receiving

an increased interest as social and economic differences defy the conventional solutions of

the public welfare. While social entrepreneurship and social venture literature see an

ascending trend on publications on the subject, strategies and tools for financing the social

venture is still a young subfield. Thus, the question arise how social entrepreneurs can fund

their social venture to ensure that the business can stay financially viable over time. This

study explores funding options for social ventures in Norway, depending on their social

business model and the ventures life cycle phase. I aim to create a guideline that can help

new entrepreneurs to choose the most relevant funding options for their social venture by

answering the following research question: What type of funding are most relevant

depending on social business model and the stage of the entrepreneurship process?

Drawing on the literature of social business models, the life cycle and funding options in

Norway, a questionnaire was distributed to social ventures in Norway. The social ventures

were categorized by using a framework by Saebi et.al (2019), while I identified three

different life cycles of social ventures based on literature. When responding to the

questionnaire, the social ventures described which funding options they had used in the

different phases of the social venture life cycle.

Based on my sample, I could identify differences and similarities across the four social

business models, the three phases and their choice of funding. I was able to determine which

type of funding was most used, both according to frequency and percentages. This enabled

me to rank the funding options. I found that private and public support were most used.

However, the variation in choice of funding between the social business models and life

cycle phases indicated a possible need for a guideline. The data was used to create a proposal

for a funding guideline.

To the best of my knowledge, this is the first study in Norway to propose a tool to help

social ventures in Norway. My findings can provide recommendations when starting and

funding a social venture, and thus has theoretical and practical implications.

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