Montenegrin Journal of Economics

Social Entrepreneurship – One Of The Responses To Market Imperfections

Dragan Lajovic

2012, vol. 8, no. 3, p. 85-104

Development of organizations driven by entrepreneurial spirit, but concentrated on social needs, occurred in many countries with different levels of economic development, different social policies and legal frameworks. There are several reasons for this, all of which concern the providers and users of social services. As for the beneficiaries of social services, in recent years, we can notice expansion of growth and diversity of needs. It was due to the transformation of the previous social welfare system. On the providers' side, public finance restrictions and bureaucratic obstacles make the expansion difficult, and even the maintenance of social services. Social entrepreneurship to a large extent encourages recognition and solving of social problems. This paper starts from the hypothesis that in dynamic and modern societies social entrepreneurship emerges as an important driver of innovation and social transformation of various activities (health, environment, education, entrepreneurship development, sports, culture, etc..), which enables it to take over and use the opportunities that others missed, in order to improve systems, to design and expand new approaches and advanced sustainable solutions that create social value.

suggested citation:

Dragan Lajovic. "Social Entrepreneurship – One Of The Responses To Market Imperfections." Montenegrin Journal of Economics. vol. 8, no. 3, 2012, p. 85-104

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