THE ROLE OF PARTNERSHIPS ON THE LEGAL STRUCTURE AND LOCATION CHOICE OF NASCENT SOCIAL VENTURES

Abstract

Social ventures are organized as nonprofit, for-profit or hybrid organizations whose primary purpose is to address unmet social needs and create social value. Partnerships are one of the key strategies employed by social ventures to gain resources. This study focuses on evaluating the role of partnerships on nascent social ventures participating in business plan competitions. The results suggest that partnerships are more important for nonprofit and hybrid social ventures than for for-profit social ventures. Findings also suggest that partnerships are more essential for social ventures operating in developing regions such as Africa, Asia and Latin America where institutional constraints are greater than in the United States or Canada. This study provides some empirical insight into how partnerships impact nascent social ventures operating with distinct legal structures and in different locations of operation.

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