A paradigm shift in non-profit management: exploring transition from philanthropy to social enterprise in NGOs
Date
2015-09-04
Authors
Huni, Chengetai Victor
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Abstract
This study explores the paradigm shift in non-profit management focusing on experiences of
non-governmental organisations (hereafter NGOs) that have transitioned from being donor
dependent and adopted the social enterprise form of operation. Several organisations have
prudently adopted social enterprise as a framework for non-profit management in an attempt
to attain financial stability and maintain the goal of addressing social problems. However,
little research has been done on the change management process of shifting from aid
dependency to self-sustainable management in NGOs. Beyond this, the adoption of social
enterprise principles in non-profit management has led to concerns of mission consistency
and entrepreneurial competence in maintaining the fundamental visions and strategies of
NGOs. This study adopted a qualitative approach. The data were gathered from a sample of 9
individuals who are of employees of the selected NGO and they were selected via purposive
sampling. A semi-structured interview schedule was used as the primary data collection tool
and data were gathered using in-depth interviews which were tape recorded. Additional data
was obtained from documents and records of the selected NGO. Thematic content analysis
was used to analyse the data. The findings show that dwindling donor aid, shifting donor
priorities and the desire to strengthen social impact account for NGO transition to social
entrepreneurship. Furthermore, the findings also indicate the key success factors for a
successful transition to social entrepreneurship. These include infusing an entrepreneurial
culture in the organisation, encouraging risk taking, effective communication and leadership
inter alia. The findings also reveal a number of challenges that are experienced during the
transition process pointing to the difficulty of selling mental health services, and breaking a
culture of donor aid dependency among other things. It is hoped that the findings of the study
will have both theoretical and practical value especially for NGOs transitioning to social
entrepreneurship.
Description
A research report presented to
The Department of Social Work
School of Human and Community Development
Faculty of Humanities
University of the Witwatersrand
In partial fulfilment of the requirements for the degree Master of
Arts in Social Development
January 2015