THE THIRD SECTOR S INFLUENCE ON BUSINESS PERFORMANCE TO JUSTIFY THE NEED FOR SOCIAL INNOVATION

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THE THIRD SECTOR S INFLUENCE ON BUSINESS PERFORMANCE TO JUSTIFY THE NEED FOR SOCIAL INNOVATION Authors María Alvarado Riquelme (IP) María Auxiliadora de Vicente Oliva Alejandro Agafanow Cordero Collaborating experts Ricardo García Vegas Jesús Llorente Márquez INAP INSTITUTO NACIONAL DE ADMINISTRACIÓN PÚBLICA

INNAP INVESTIGA (INNAP RESEARCH) Collection INNOVACIÓN SOCIAL Series CATALOGUE CARD FROM INAP PUBLICATION CENTRE ALVARADO RIQUELME, María The Third Sector s influence on business performance to justify the need for social innovation / authors, María Alvarado Riquelme, María Auxiliadora de Vicente Oliva, Alejandro Agafanow Cordero ; collaborating experts, Ricardo García Vegas, Jesús Llorente Márquez. 1ª ed. Madrid : Instituto Nacional de Administración Pública, 2016. 118 p. : gráf. ; 24 cm. (INNAP INVESTIGA Collection. INNOVACIÓN SOCIAL Series) Bibliografía: p. 99-103 ISBN 978-84-7351-531-3 (paper format). ISBN 978-84-7351-532-0 (electronic format). NIPO 635-16-022-0 (paper format). NIPO 635-16-025-7 (electronic format) 1. Empresas sociales-españa. 2. Innovaciones sociales-españa. 3. Servicios sociales- Aspectos económicos-españa. I. Agafanow Cordero, Alejandro. II. Vicente Oliva, María Auxiliadora de. III. García Vegas, Ricardo. IV. Llorente Márquez, Jesús. V. Instituto Nacional de Administración Pública (España). VI. Título. VII. Serie 331.484(460) 330.342.146(460) First edition: October 2016 General catalogue of official publications: http://publicacionesoficiales.boe.es The Instituto Nacional de Administración Pública's editorial activity is recognised by Scholary Publishers Indicators in Humanities and Social Sciences (SPI) in Political Science and Law disciplines. The SPI list is accepted as a point of reference by the Agencia Nacional de Evaluación de Calidad y Acreditación (National Quality and Accreditation Evaluation Agency), by the Comisión Nacional Evaluadora de la Actividad Investigadora (National Research Activity Evaluation Commission) (CNEAI) and by the Agencia Nacional de Evaluación y Prospectiva (National Evaluation and Foresight Agency) (ANEP). Unless otherwise stipulated by the law, it is forbidden to reproduce, distribute, publicly communicate and transform this work in any fashion without authorisation from the intellectual property owners. Infringing upon these aforementioned rights may constitute a crime against intellectual property (arts. 270 and following in the Penal Code). Editor: INSTITUTO NACIONAL DE ADMINISTRACIÓN PÚBLICA (NATIONAL PUBLIC ADMINIS- TRATION INSTITUTE) www.inap.es ISBN: 978-84-7351-531-3 (paper format); 978-84-7351-532-0 (electronic format) NIPO: 635-16-022-0 (paper format); 635-16-025-7 (electronic format) Legal deposit: M-14634-2016 Preimpresión: Contenidos y Proyectos ISLIZ Impresión: Ulzama Digital Recycled, chlorine-free paper was used for this publication, as per public procurement environmental criteria.

The third sector s influence on business performance CONTENT 1. REPORT OBJECTIVES... 7 2. INTRODUCTION... 9 3. THE CONCEPT OF SOCIAL ENTERPRISE... 11 3.1. Differentiating elements of social enterprises... 14 3.1.1. Compared with private companies... 14 3.1.2. Compared with non-profit organisations... 15 3.1.3. Compared with social economy enterprises... 16 4. TOWARD A TYPE OF SOCIAL ENTERPRISE... 19 5. APPROACHES TO STUDY SOCIAL ENTERPRISES... 21 6. SPANISH LEGAL FRAMEWORK FOR THE SOCIAL ECONOMY AND SOCIAL ENTERPRISES... 23 7. SOCIAL ENTERPRISES AND SOCIAL INNOVATION... 25 8. VARIABLE SYSTEM FOR THE STUDY OF SOCIAL INNOVATION... 27 8.1. Environment... 28 8.1.1. Generic... 28 8.1.2. Specific... 29 8.1.3. Strategic networks... 29 8.2. Organisational model... 30 8.2.1. Strategic framework... 30 8.2.2. Organisational structure... 31 8.2.3. Resources... 32 8.2.4. Management procedures... 32 8.2.5. Organisational culture... 32 8.3. Human resources... 33 3

Investiga 9. STUDY POPULATION... 35 9.1. Explanation of the selection of the study population... 35 9.2. Definition of the population... 40 10. METHODOLOGY... 45 10.1. Phase 1. A literature and documentary review... 45 10.2. Phase 2. Qualitative approach... 46 10.3. Phase 3. Quantitative approach... 46 10.4. Phase 4. Statistical analysis and extrapolation of survey results... 47 10.5. Phase 5. Development of an integrated identification, measurement and assessment model and management of social innovation indicators... 47 11. SURVEY RESULTS... 49 11.1. Type of innovation... 50 11.2. Governance model... 54 11.3. Impact... 55 11.4. Environment... 56 11.5. Organisation level... 62 11.6. Individual level... 75 12. EVALUATION OF SURVEY RESULTS... 79 13. SCORECARD FOR ASSESSING INNOVATION FACILITATORS IN ORGANISATIONS... 89 14. CONCLUSIONS... 95 REFERENCES... 99 APPENDIX I. SOCIAL INNOVATION SURVEY... 105 APPENDIX II. LEGAL FRAMEWORK OF THE SOCIAL ECONOMY IN SPAIN... 113 4

The third sector s influence on business performance INDEX OF ILLUSTRATIONS Figure 1. Characteristics of the social economy company compared with the social enterprise... 17 Figure 2. Typology of social enterprises... 19 Figure 3. Incidence of unemployment on groups at risk of social exclusion... 39 Figure 4. Technical details of the statistical analysis... 50 Figure 5. Characterisation of the innovation... 90 Figure 6. Innovation facilitators... 92 Figure 7. Variables system... 96 LIST OF FIGURES Chart 1. Percentage of unemployed population... 36 Chart 2. Evolution of the unemployment rate in Spain... 37 Chart 3. People at risk of poverty or social exclusion... 39 Chart 4. Percentage of population at risk of social exclusion in Spain... 40 Chart 5. Number of CEPES social economy entities... 42 5