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Purpose– Sweden, and many other countries, has, during the twentieth century, developed a rather large public sector providing social welfare services to citizens. Only to a small extent were private for- or nonprofit organizations providing these services. During the last decade we have seen a shift towards more services being provided by private for- and nonprofit actors. This shift means that roles are reconsidered, renegotiated and reconstructed. In this debate social entrepreneurship, social enterprises and innovation are emphasized. The aim of this paper is to problematize and analyze how social entrepreneurship and social enterprises relate to public sector management and governance.Design/methodology/approach– In the paper theories on (social) entrepreneurship and innovation is combined with theories focusing on welfare structures. Empirically, the analysis is based on the current policy development in Sweden and five social entrepreneurship initiatives.Findings– The analysis discloses the relationship between the public sector and social entrepreneurship as negotiation of emerging social enterprise markets in which aspects as the creation of value, dependencies and innovation are emphasized. Even if the study has a geographical focus both theoretical contributions and implications for policy and practice can be of use also in other contexts.Originality/value– Through combining social entrepreneurship with welfare services and public management this empirically based study contributes both to problematize and align the emerging field of social innovation.

PurposeSocial entrepreneurial initiatives are often ascribed innovative roles for the public good. However, it is also argued that the same initiatives react to conditions in different contexts as well as to local or global trends. But, what roles and values are brought into practice by initiatives today and how can these be conceptualised as innovative? The aim of this paper is to empirically describe and analyse social entrepreneurship initiatives and contribute to the understanding of their role in the development of society.Design/methodology/approachThe paper is based on a framework focusing on entrepreneurial dynamics, organisations and institutions. Empirically, it is grounded in four studies of social enterprises and their entrepreneurial initiatives in Sweden.Findings– The results reveal an intricate interplay between innovative challenges and institutional inertia as well as a combined role for social entrepreneurship initiatives in which innovative aspects can be more or less extensive.Originality/valueThe study contributes to problemising and nuancing the understanding of social entrepreneurship and social enterprises in relation to innovation in society.

ABSTRACT: By entrepreneurial combinations of voluntary resources, project means from public and private sources, commissions on contracts and other ways of financing, the youth house Fryshuset, with a great number of social activities for primarily young people in Stockholm, Sweden, has been able to allocate resources for establishing and expanding its activities. This development would not have been possible without struggle against established norms, values, traditions and institutions, not least the 'close to monopoly' that the public sector in practice was having on the fields in which Fryshuset emerged. Step by step, Fryshuset has built partnerships and alliances with public, private as well as civil actors. Expressed in a general way, Fryshuset has built a new social capital and created new norms and values.The aim of the paper is to investigate how Fryshuset has managed to build social capital through, and for entrepreneurial efforts aiming to facilitate young peoples' development.

Foreword / by Lars Hulgaard -- Preface -- Acknowledgments -- Social entrepreneurship and social enterprises in the Nordics : narratives emerging from -- Social movements and welfare dynamics / Linda Lundgaard Andersen, Malin Gawell, and Roger Spear -- Social entrepreneurship demolition of the welfare state or an arena for solidarity? / Linda Lundgaard Andersen and Lars Hulgaard -- Social entrepreneurship and social enterprises : chameleons through times and values / Malin Gawell -- Evolution of the social enterprise concept in Finland / Harri Kostilainen and Pekka Pottiniemi -- Social enterprise as a contested terrain for definitions and practice : the case of Norway / Hans Abraham Hauge and Tora Mathea Wasvik -- Practicing entrepreneuring and citizenship : social venturing as a learning context for university students / Bengt Johannisson -- Employees as social intrapreneurs : active employee participation in social innovation / Catharina Juul Kristensen -- The added value of social entrepreneurship in contemporary social design in Norway / Brita Fladvad Nielsen and Jonas Asheim -- Social entrepreneurship : between Odysseus' scar and Abraham's sacrifice / Daniel Ericsson -- Social entrepreneurship as collaborative processes in rural Sweden / Yvonne von Friedrichs and Anders Lundstrom -- Microfinance as a case study of social entrepreneurship in Norway / Unni Beate Sekkesoeter -- Social change through temporary short-term interventions : the role of legitimacy in organizing social innovation / Anders Edvik and Fredrik Bjork -- Entrepreneurship invited into the (social) welfare arena / Malin Gawell, Elisabeth Sundin, and Malin Tillmar -- Narratives of social enterprises : its construction, contradictions and implications in the Swedish debate / Ulrika Levander -- Democratic innovations : exploring synergies between three key post-NPM concepts in public sector reforms / Victor Pestoff -- About the authors -- Index

This paper is based on results from the findings in the cross-disciplinary project on societal entrepreneurship in sparsely populated areas (SESPA). Studies within this project that take their point of departure in the societal or community-based entrepreneurship literature demonstrate how different contextual aspects as well as different perspectives enhance the understanding of why societal entrepreneurship is important for regional and local surroundings and development. The analysis of the studies within the SESPA project reveals societal entrepreneurship as a multifaceted and complex phenomenon interrelated with the local context as well as with national and even global developments. It is a cross-boundary force for local and regional development. The sub studies emphasize different aspects in which societal entrepreneurship in conclusion can be understood as local responses to local challenges, the multiplication of organizational missions, as well as collective solutions to diverse goals. The analysis emphasizes an intertextual vision of a 'positive development' in which societal entrepreneurship combines entrepreneurial drives with societal aims. Furthermore, the analysis reveals different, even multiple, reasons why societal entrepreneurship is cherished by different actors engaged in or related to the development – in this case of a sparsely populated region.