The Process of Forming Social Entrepreneurial Ventures: Application of Grounded Theory

Social entrepreneurship and social entrepreneurial processes essentiality provide an opportunity to create social values in an innovative manner. Regarding the critical role of this emerging phenomenon in sustainable social and economic development, scholars emphasize the need for developing the social entrepreneurial venture (SEV) in societies. The contextual nature of social entrepreneurship makes it necessary to understand its particular processes and mechanisms in a specific social, economic and cultural context where it is supposed to be developed. Thus, this study has addressed the question of “how is the process of a new SEV undertaken in a developing country like Iran?” In doing so, the grounded theory method was used. Nine in-depth interviews were conducted as case studies of social entrepreneurs who had experienced the process of the SEV creation. Through data collection and analysis stage, structure of values and social interactions of social entrepreneurs from childhood to the time of their social venture creation were documented in detail. Interaction between social entrepreneurs and their context was deemed to be a fundamental level of analysis. Based on this analysis, a middle range theory was drawn. According to the findings, the main theme that leads to creation of social entrepreneurial venture is the individual`s attitude toward socially responsible activities, signifyting the perceived desirability of the venture. With the influence of specific mediators and contextual factors, the individual perceives the feasibility of social entrepreneurial venture and adopts specific strategies that will lead to new social entrepreneurial venture.