Mary Joy F. Celeste, Pamela F. Resurreccion
MSU-Iligan Institute of Technology, Philippines
Social enterprises play a crucial role in addressing the challenges of inclusive growth, particularly in areas with volatile economies marked by disasters and conflicts, such as Lanao del Sur, Philippines. Social enterprises are unique due to their dual-centric mission, which pursues both social impact and economic goals. Anchored on Resource Dependence Theory and Institutional Theory, this study investigated the impact of financial pressures on the social and financial performance of a social enterprise in Lanao del Sur. A qualitative approach was employed, utilizing in-depth interviews and thematic analysis to uncover patterns, themes, and narratives related to financial pressures and balancing dual missions (Braun & Clarke, 2006). The findings revealed that financial pressures stemming from income instability, cash flow shortages, liquidity crises, and financial strains significantly impair operational capabilities, hindering both the social and financial performance of the social enterprise. Furthermore, the study highlighted the vital role of government and non-government organizations in aiding the social enterprise. Grants, mentorship, networks, and collaborations helped the business survive and thrive amidst financial challenges. However, while these different types of support ensure implementation of social goals, they also indirectly exert pressure on the social enterprise to prioritize financial goals, potentially compromising their social performance. Thus, the study underscored the importance of balancing the dual mission, offering valuable information for social enterprises and other stakeholders in crafting effective programs, strategies, and initiatives that facilitate the achievement of both the social and financial goals of social enterprises while contributing to the Sustainable Development Goals (SDGs) by fostering inclusive growth.
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