Determinants of Development of Social Enterprises according to the Theory of Sustainable Development
Round 1
Reviewer 1 Report
• The research gap is not clear: the introduction explains the internal and external challenges of social enterprises, but the gaps in the literature that this research intends to fill are not shown.
• The literature review looks fine.
• In the method section, it is better to specify the type of statistical test used in the research. What type of non-parametric test was used? (Line 310).
• What is the reliability and validity of the survey scale?
• What is the basis for grouping in subsection 4.3? Can cluster analysis be used?
• The authors' rejected hypothesis does not imply what is written in line 448. The authors could use inferential statistics to make your case stronger. What about other influencers which might affect the results?
• Future research directions need to be expanded to provide readers with a more complete picture of opportunities to develop research.
• It is necessary to explain contributions to both the literature and practice in the conclusion.
• Other: A citation is required for the statement in line 299.
Author Response
- The research gap is not clear: the introduction explains the internal and external challenges of social enterprises, but the gaps in the literature that this research intends to fill are not shown.
Added
In the method section, it is better to specify the type of statistical test used in the research. What type of non-parametric test was used? (Line 310).
As per reviewer’s suggestion we specified the type of statistical test used in the research.
What is the reliability and validity of the survey scale?
Added
What is the basis for grouping in subsection 4.3?
The basis for grouping was Polish law, i.e. according to Polish legislation social entities with income up to 100k PLN are considered as micro and as a result they can use simplified reporting. Then the law distinguishes small, medium and big business entities. Thus, we used the generally applicable grouping.
The authors' rejected hypothesis does not imply what is written in line 448. The authors could use inferential statistics to make your case stronger.
Corrected
Future research directions need to be expanded to provide readers with a more complete picture of opportunities to develop research.
Added
It is necessary to explain contributions to both the literature and practice in the conclusion.
Added
Other: A citation is required for the statement in line 299.
Added
Author Response File: 
Author Response.docx
Reviewer 2 Report
One of the best research areas in the social entrepreneurship discipline. Thus, appreciate the efforts by authors to develop a dialogue between theories and empirical findings.
Following comments/suggestions were highlighted,
1. Research model/framework need a thorough argument and literature-based foundation. Number of employees and income and how it link with “Decent work” is not clear and need more discussion.
2. Some references are outdated (2000,2002,2003 etc.)
3. Corrections to be made ;
107 ,389, 390 sentence – remove citation
Title of the Table 1 (Sentence 318)
4. The empirical analysis need more theoretical base. Although , the hypothesis were tested empirically, each hypothesis were lesser-linked with theoretical base. Thus , thorough literature review is suggested.
5. The basis for developing the research framework is unclear (whether sufficient literate were reviewed or supported). Further, the variable “Decent work” within the framework is vague and not practical.
The developed research framework has not referred by the latter part of the paper to develop arguments/hypotheses and analysis
6. Suggest to re-address the Conclusion section
Author Response
- Research model/framework need a thorough argument and literature-based foundation. Number of employees and income and how it link with “Decent work” is not clear and need more discussion.
Corrected and added explanation of the term “decent work”
- Some references are outdated (2000,2002,2003 etc.)?
Corrected
- Corrections to be made ;
107 ,389, 390 sentence – remove citation
Corrected
Title of the Table 1 (Sentence 318)
Corrected
- The empirical analysis need more theoretical base. Although , the hypothesis were tested empirically, each hypothesis were lesser-linked with theoretical base. Thus , thorough literature review is suggested.
Added
- The basis for developing the research framework is unclear (whether sufficient literate were reviewed or supported). Further, the variable “Decent work” within the framework is vague and not practical.
Research framework developed; the term “decent work” explained
The developed research framework has not referred by the latter part of the paper to develop arguments/hypotheses and analysis
Added some explanations
- Suggest to re-address the Conclusion section
Corrected conclusion section
Author Response File: Author Response.docx
Reviewer 3 Report
The aim of the paper is to identify internal and external conditions influencing the functioning and development of social enterprises operating in the Warmia and Mazury region, which are underdeveloped. The paper indicates that not only financial and legal issues limit the development of social enterprises, but also "soft elements" such as the insufficient number of people willing to do social work or the level of creativity of the employed staff.
The article begins by pointing out the similarities and differences between the social economy, social enterprises, sustainability and the goals of sustainable development. The article describes a compilation of the different definitions of social enterprise, its main determinants and its differences with traditional enterprise.
Three hypothesis are formed as follows:
H1: The volume of the support given to social enterprises has positive impact on the amount of created workplaces.
H2: The volume of the support given to social enterprises has positive impact on the income gained by them through sales of products and services.
H3: The amount of employees of a social enterprise has positive impact on the income gained by that enterprise.
Non-parametric tests were used.
However, I find some limitations in the article.
· The article addresses the theory of social economy, sustainability and the Sustainable Development Goals, however, the results do not take up arguments from these approaches.
· In the sustainable development approach, it is important to consider all the dimensions proposed by the current literature: environmental, social, economic and institutional.
· The article highlights “The paper indicates that not only financial and legal issues limit the development of social enterprises, but also "soft elements” This is a fake debate. Every enterprise that participates and competes in the markets must consider soft elements as a fundamental part of their business strategies. Current literature no longer discusses it. In any case, it is a debate already overcome.
· If the article is interested in the study of social enterprises (which employ a specific number of people excluded from the labor market), then there are some questions to answer. Current literature discusses how to determine the optimal amount of employment for a social enterprise. What factors to consider? These elements are not shown in the proposed theoretical section.
· H1 raises a debate that has already been overcome. What is discussed in the current literature is what type of support provided to social enterprises generates the greatest impact, depending on the sector and type of social enterprise.
· The H3 is very general. What is discussed in the current literature is what type of jobs or what characteristics of human capital generate the greatest impact according to the types of social enterprises.
· The results are from social enterprises that received support, so this limits that the results are replicable or associative to other social enterprises, even of the same type of social enterprises. An impact method should have been used that considers a group of social enterprises that did not receive support.
· The article highlights “It is worth noting that the insufficient amount of people willing to work in social services is viewed as a significant barrier” The current literature mentions that some models of social enterprises overcome this barrier by offering welfare wages to their employees, generating a compensatory mechanism in the profit margin of the final price of the product or service. Review the model of Yunus social business (a world of three zeros: the new economics of zero poverty, zero unemployment, and zero net carbon em, 2017).
It would be very interesting to use the survey carried out in 2021 to delve into the studies of social enterprises and their impacts generated by COVID-19, in social, economic and operational terms. The article only mentions general elements.
Author Response
- The article addresses the theory of social economy, sustainability and the Sustainable Development Goals, however, the results do not take up arguments from these approaches.
As it has been indicated in the paper the results of the research focus on proving whether or not the created social enterprises contributed towards creating good jobs for people excluded from the labour market for various reasons. This is one of the goals of Sustainable Development Goals as well as social economy. Nevertheless, as per the reviewer’s comment connections between social economy, sustainability and the Sustainable Development Goals were highlighted in the results section.
- In the sustainable development approach, it is important to consider all the dimensions proposed by the current literature: environmental, social, economic and institutional.
As per the reviewer’s comment all the dimensions of sustainable development were emphasized both in Literature Review and in Results sections.
- The article highlights “The paper indicates that not only financial and legal issues limit the development of social enterprises, but also "soft elements” This is a fake debate. Every enterprise that participates and competes in the markets must consider soft elements as a fundamental part of their business strategies. Current literature no longer discusses it. In any case, it is a debate already overcome.
Agreed with the reviewer. The relevant sections were removed.
- If the article is interested in the study of social enterprises (which employ a specific number of people excluded from the labor market), then there are some questions to answer. Current literature discusses how to determine the optimal amount of employment for a social enterprise. What factors to consider? These elements are not shown in the proposed theoretical section.
The theoretical section was expanded as per the reviewer’s comment. The issue has been indicated in hypotheses justification.
- H1 raises a debate that has already been overcome. What is discussed in the current literature is what type of support provided to social enterprises generates the greatest impact, depending on the sector and type of social enterprise.
We agree with the comment. Unfortunately, currently we do not possess the data which would allow us to specify the hypothesis. The comment was included in the limitations section. It should also be noted that the hypothesis was to monitor efficiency (viewed as a number of employees) of the support offered to the social enterprises in this particular case only. Combining it with hypothesis 2 gives a clearer view on the matter.
- The H3 is very general. What is discussed in the current literature is what type of jobs or what characteristics of human capital generate the greatest impact according to the types of social enterprises.
This hypothesis was to refer to an issue noticed by the reviewer which is the amount of employees in social enterprises. In general, every employee should bring in an added value. Assuming that the added value can be expressed in money, logically increase in employment should result in increase in income of an enterprise. Otherwise, there is a problem with productivity of employees. Certainly, specifying this hypothesis (e.g. type of jobs) would be appropriate. Unfortunately, we do not possess such data. We included a note about that in the limitations section.
- The results are from social enterprises that received support, so this limits that the results are replicable or associative to other social enterprises, even of the same type of social enterprises. An impact method should have been used that considers a group of social enterprises that did not receive support.
The suggested approach is right. Certainly such direction of research (i.e. comparison of enterprises which received the support with those that did not) would be valuable and it would enable to reach positive conclusions. Unfortunately, in this case, meeting this demand is problematic. Polish law specify statute of a social enterprise and simply there are no such enterprises in the region of Warmia and Mazury. At the same time, it is not an issue with the database.
- The article highlights “It is worth noting that the insufficient amount of people willing to work in social services is viewed as a significant barrier” The current literature mentions that some models of social enterprises overcome this barrier by offering welfare wages to their employees, generating a compensatory mechanism in the profit margin of the final price of the product or service. Review the model of Yunus social business (a world of three zeros: the new economics of zero poverty, zero unemployment, and zero net carbon, 2017).
We got acquainted with the literature mentioned by the reviewer 2-3 years ago. Models of social enterprises, proposed in the book, which overcome mentioned barrier are certainly a helpful advice which should be passed to the participants of the research presented in this article. These are their subjective opinions. We simply presented the problem signalised by them. Overcoming them is a different matter.
It would be very interesting to use the survey carried out in 2021 to delve into the studies of social enterprises and their impacts generated by COVID-19, in social, economic and operational terms. The article only mentions general elements.
Yes, we agree with that. Such research should be conducted promptly (while the problem is still present). As per suggestion of the reviewer we aim to start the follow up research this year.
Author Response File: Author Response.docx
Round 2
Reviewer 1 Report
The authors have followed up on various feedback provided in the previous round.
Reviewer 3 Report
I have reviewed version 2 of the document. I have perceived that the suggestions made have been addressed throughout the document (in general). The document now presents a greater logical consistency with the object of study. In addition, the document now clearly states the limitations of the research and guidelines for future research.
