Understanding the Function of a Social Business Ecosystem

Social entrepreneurs face challenging situations in trying to expand and grow businesses with little investment limited resources. Interactions networks between social entrepreneurs, investors, other stakeholders are indispensable promoting entrepreneurship. Together, they come form a cyclical “social business ecosystem” (SBE), which can finance their projects by paying “share transfer fees.” By using theoretical/mathematical model our method, this study examines the fundamental role of share fees an SBE. In particular, it establishes moral hazard that explain important characteristics As main results, identifies conditions under SBE mitigate entrepreneurs. The results suggest SBEs work efficiently for relatively small projects. This is consistent actual cases business. Within framework, also explores practical implications knowledge spillover; conduct more if take advantage spillover.