GSOM SPbU experts have completed the research Sustainable Innovations Through the Lens of Partnership Between Large Corporations and Social Entrepreneurs. The report was supported by Impact Hub Moscow. 

The research team also comprises Master in Management program students Elena Klimova, Svetlana Troshneva, Denis Borodin and Nikita Paykin. The project is aimed at identification, study and analysis of factors influencing partnership relations between large corporations and social entrepreneurs. Research lead is Ioannis Christodoulou, Associate Professor at the Department of Strategic and International Management; research co-lead is Yulia Aray, Associate Professor at the Department of Strategic and International Management.

"We consider Social entrepreneurship, especially in emerging markets, as the most challenging form of entrepreneurship. It is deemed that the ability to be a social entrepreneur in emerging markets allows him/her to prepare to be an entrepreneur in any other context. The challenges of setting up a social enterprise, develop it in financially viable manner within emerging market complexities makes it a herculean feat. Overcoming these challenges is in itself an innovation process requiring the creation of a new business model. For this reason, social entrepreneurship is directly connected with sustainable innovation. However, sustainability is not only connected with the green and ethical perspective but also with the financial perspective in the long run", — noted the authors in the research report.  

Experts interviewed representatives of non-profit sector and commercial companies and analyzed successful international cases of collaborations between Social Entrepreneurs and Large Corporations. Social entrepreneurs have no motivation to get a legal status. This can be related to fear of making less revenues, lack of knowledge, complexity of procedure, or stereotypes. Although representatives of corporations believe that a legal status could increase the legitimacy of such organizations and contribute to the development of joint projects. The social aspect is an added benefit. It could add some value and give opportunities in some grants and competitions and during the process of compliance procedures with large corporations.

Social entrepreneurs’ resilience and commitment result in initiative and leadership that large corporations appreciate during further close collaboration. Social entrepreneurs attach more importance to nurturing non- tangible resources than the tangible ones. The most frequently mentioned ones: “result-orientation” and “devotion to deliver a top quality product”. Experts consider that most partnerships are happening on the very low level of resource engagement and are bringing only a limited value. There is a lack of sustainable practices integrated in the business models of LC and lack of business knowledge in SE organizations. More integrated partnerships can bring a variety of benefits for both parties.