Unfolding the Layers of Social Entrepreneurship in Turkey

1. Introduction

Humanity needs radical reforms on a scale never previously witnessed in human history due to the gravity and scope of the problems faced globally. Low-carbon, resilient, and inclusive courses of development must be pursued which would eventually lead to a reduction in carbon emissions, protection of natural resources, shifts in the food systems, more employment, and the transition to a greener, more inclusive, and equitable economy (United Nations, 2022).

Environmental and social awareness which create understanding and implementation in sustainable business practices accelerated with the upsurge of sustainable business models which is a paradigm in which sustainability concepts influence the firm’s driving force and decision-making. Besides, there is an increasing pressure that is placed on businesses to address sustainability concerns. Organizations are expected to address environmental, social and economic issues such as economic and social inequalities and financial and climate crisis with greater vigor.

2. The Urgent Need for Sustainability

The inception of the first industrial revolution was marked by the introduction of water and steam power, coupled with the implementation of mechanical production systems. Subsequently, the advent of electric power in manufacturing processes heralded the second industrial revolution, characterized by a transition to mass production. When electronics and information technology became prevalent in production, a digital revolution known as the third industrial revolution resulted. Conversely, the concurrent connections between the virtual and physical domains define the fourth industrial revolution, which is identified by the integration of cyber-physical systems. Scientific and technological developments have sparked many industrial revolutions, improving manufacturing techniques across ages and creating systems of production that are more productive and efficient than those of previous eras. The increase in supply, especially during the second industrial revolution, has led to increased rivalry, which has over time transformed into a violent worldwide struggle. The escalating consumption patterns, concomitant with the rapid population expansion, exert deleterious effects on the surrounding natural environment, precipitating a depletion of finite resources and posing a formidable threat to the prosperity and quality of life for subsequent generations. The exigency of the circumstance becomes evident when one considers the socio-economic ramifications instigated and potentially exacerbated by the climate crisis, alongside the profound global repercussions, encompassing diminished biodiversity, irregularities in seasons, climatic extremities, inundations, protracted and more recurrent droughts, and the attenuation of water reservoirs (WHO, 2023). Thus, the health and integrity of the society should be safeguarded, and the planet’s ecosystems should be preserved. Sustainability, serving as the descriptor for all these concepts, has been defined as “coordinated interconnections facilitating the understanding and effective communication of the concept in the process of achieving sustainable development and directing society towards it” (Glavič & Lukman, 2007: 1884). Sustainability assumes a pivotal role in the implementation of judicious resource management, the reduction of pollution, and the conservation of biodiversity in terms of environmental sustainability. Besides, sustainability underscores the imperative of social inclusivity and equity which is the second pillar of sustainability. It seeks to rectify disparities in the access to resources, opportunities, and benefits, thereby promoting social justice and ensuring that the fruits of development are equitably distributed across all strata of society. The third pillar of sustainability suggests economic stability. Through the cultivation of innovation, efficiency, and responsible governance, sustainability augments economic resilience and mitigates risks associated with resource scarcity and environmental upheavals.

3. Social Entrepreneurship in the World

Globally, the idea of social entrepreneurship is growing in significance. A novel approach to business, social entrepreneurship successfully tackles societal issues on a worldwide scale while fostering steady economic expansion (Osyka, 2021). Social entrepreneurs develop cutting-edge company strategies that satisfy fundamental human needs and encourage corporate social responsibility (Seelos & Mair, 2005). The goal of social entrepreneurship is to find, assess, and take advantage of opportunities that address fundamental and persistent needs in society in order to generate social value as opposed to financial gain for individuals or shareholders (Certo & Miller, 2008). Noruzi et al. (2010) state that it has several social, economic, and environmental objectives. This is particularly true in light of the issues and requirements faced by the world’s impoverished (Bedi & Yadav, 2019). Key features of social opportunity affect how social projects spread internationally (Zahra et al., 2008). By fusing economic acumen with inspiring leadership to accomplish social objectives and enhance sustainability, social entrepreneurship presents a novel approach to management education (Muscat & Whitty, 2009). Through the combination of entrepreneurship’s financial gains with the realization of social and environmental goals, social entrepreneurship has the potential to promote social and economic development for people and communities globally. Effective reasoning, increased legitimacy, and information technology—which can be strengthened by information technology and suitable reporting metrics—are the means by which social entrepreneurs can advance society (VanSandt et al., 2009). Above all, social entrepreneurship can be a helpful tactic to address unfulfilled personal and societal demands (Haugh, 2007). To completely comprehend this idea, its origins, and its implications, more study is required (Bedi & Yadav, 2019).

Li (2014) and Agrawal and Gugnani (2014) both stress how crucial it is for social entrepreneurs to have a sustainable business plan. Agrawal searches especially for technologies that are dynamic and financially viable. Li (2014) explores this concept further in her case study of TerraCycle, a social entrepreneurship business that effectively struck a balance between long-term financial viability and social purpose. Mefi (2020) expands on the discussion and adds sociological and cultural viewpoints by emphasizing social values and support as critical elements affecting the prosperity of social entrepreneurship in South African slums. More than a third of the world’s population resides in the 15 countries that make up the Regional Comprehensive Economic Partnership Agreement. These nations also produce 29 % of the world’s GDP, foster social entrepreneurship to promote innovation, and indirectly influence innovation through sustainable development (Al-Qudah et al., 2021). These studies all emphasize how crucial adaptable, imaginative, culturally sensitive, and long-lasting business methods are for social entrepreneurship.

4. Social Entrepreneurship in Türkiye

According to a study on social entrepreneurship done in Türkiye, civic participation is very common there, while education is heavily downplayed (Inci, 2016). Pro-social elements and individual motives play a major part in the formation of social entrepreneurs in Türkiye, who are motivated by societal vision and personal fulfillment (Ozbay & Çelikel, 2022). Turkish owners of Small Medium Enterprises (SMEs) are motivated more by financial benefits than by intrinsic motivation. The entrepreneurs’ reputation for friendliness and sincerity are the most crucial factors in their company’s success. Other important elements of achievement mentioned were social skills and providing excellent customer service. The convoluted and perplexing tax code is the biggest issue Turkish entrepreneurs confront. A slow pace economy, unstable staff, and the incapacity to keep accurate records are some other significant issues (Benzing et al., 2009). Bascavusoglu-Moreau (2010)’s research also looks into the factors that influence innovative capabilities in Turkish SMEs and finds that R&D investments, the use of ICTs, exporting, outsourcing, and staff education all contribute to innovation. Interestingly, the most important factor influencing inventive performance is the possession of quality labels and certificates, which demonstrate a company’s capacity to learn and use specialist information. The examination emphasizes the inadequacies of organized industrial areas and the shortcomings of the Turkish national innovation system and entrepreneurial activity. There are also acknowledged financial obstacles and a dearth of private finance options for small businesses, yet regional entrepreneurship capital enhances SMEs’ capacity for innovation. The research indicates that Turkish SMEs’ failures to become knowledge-based, and globally competitive are mostly caused by policy-related problems rather than a lack of entrepreneurial behavior.