Development of a social business as a social innovation: the case of Lithuania

Abstract

Purpose of this article is to assess the first steps of development of social business in Lithuania. Research methodology − systematic analysis of the peculiarities of social business in the scientific literature; identification of the main social problems and possibilities for social business based on results of semi-structured interviews, expert assessment, data grouping and interpretation. Findings − social business development is slow compared to its need. The creation of a legal framework, validating a flexible model of social business and wider social advertising campaign can serve as catalysts for the breakthrough to pave the way for social business development. Research limitations − the main limitation – lack of official social business statistics. Another – factor of subjectivity, which could affect the results of the research, revealing only the main tendencies and problems. In the planning of further research, it is possible to seek greater objectivity of the evaluation by improving the survey questionnaire, to evaluate the social and economic efficiency of social business by the cost-benefit analysis method. Practical implications − the obtained results are useful for social and economic policy makers. Originality/Value − the study contributes to scientific literature by sufficient understanding of practical problems of social business development and fills the gap in research of possibilities of social business development.