SOCIAL BUSINESS SECTOR DYNAMICS: THE COMPERATIVE ANALYSIS OF TURKEY AND DEVELOPING COUNTRIES

Abstract

This study aims to conduct a comparative analysis of social business sector dynamics in Türkiye and other developing countries. The study focuses on social business sector dynamics, including legal frameworks, financial ecosystems, countries' social innovation capacity, demographic participation, and cultural-contextual factors, across 20 countries.

The social business sector is characterized by responsible approaches to products and services. However, there is limited research in the literature on the mechanisms supporting these responsible approaches, the strategies necessary for long-term sustainability, and the dynamics driving the sector's development. While governments and sector players express short-term support for the social business sector, the lack of long-term planning and sustainability goals for this sector is striking. Social business sector players generally respond reactively to environmental changes rather than proactively supporting existing conditions in almost all countries under study.

In summary, the study aims to examine the dynamics of the social business sector in Turkey and other developing countries and to highlight the need for strategic policies and institutional frameworks that foster innovation and ensure long-term sustainability. The research examines the responses of 180 experts from 20 countries who participated in the International Academic Social Business Sector Workshop (2020) held in Turkey.

In this context, factor analysis is used to compare social business sector dynamics across regions. The research findings highlight the importance of responsible business practices and social inclusion in promoting economic and social development. Through comparative analysis, factors that support or hinder the sustainable growth of the social enterprise sector are identified, and it is concluded that government policies and institutional support are important in shaping social entrepreneurship potential.

Although some countries have initiated some studies for the development of this social business sector and taken steps on a macro scale, it cannot be said that they have reached the targeted point yet. For example, when country experts were asked about their opinions on whether the human resources in their countries were sufficient to sustain social investments in the social business sector, more than half of the country participants stated that the human resources were insufficient in this sector. They suggested that trainings be planned to increase qualified human resources.

When the same experts were asked about their opinions on whether the social business sector was sufficiently full of social initiatives and social innovations, they stated that there were not enough social initiatives and social innovations; there were serious gaps and deficiencies in this area. In fact, out of the 20 participating countries, only 2, excluding Turkey, stated that there were sufficient social enterprises and social innovations in their countries.

The findings highlight the importance of responsible business practices and social participation in fostering economic and social development. Through comparative analysis, the study seeks to uncover the factors that either support or hinder the sustainable growth of the social business sector, emphasizing the role of government policies and institutional support in shaping its entrepreneurial potential.

To sum up, while Turkey’s social business sector shows immense promise, its long-term success will depend on the alignment of institutional reforms, entrepreneurial mindsets, and strategic planning. For this sector to transition from reactive to proactive responses, a more structured, sustainable ecosystem must emerge—one that combines innovation with long-term vision and leverages both social and financial capital. Further research in this area will contribute significantly to both the academic literature and policy-making, ensuring that social businesses are adequately supported in their journey toward achieving systemic and transformative social change.