Efficient Fund Management in Romanian Social Enterprises a Determining Factor of Community Social Change
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| Pages: | 67 : 94 |
| Abstract: | The social economy has become an increasingly important component of sustainable development and socio-economic inclusion strategies due to its capacity to address economic and social objectives simultaneously. Within this framework, social enterprises contribute to the labour market integration of vulnerable groups, the provision of social services, and the strengthening of local communities. However, the extent to which these organisations generate measurable community outcomes depends largely on how effectively they manage available financial resources. This study examines the relationship between fund management efficiency and the capacity of Romanian social enterprises to generate community-level social change. A quantitative research design was employed, combining descriptive statistical techniques with panel econometric modelling based on data collected from active Romanian social enterprises during the period 2020–2025. The analysis focuses on the influence of financial resource efficiency, profit reinvestment practices, the employment of vulnerable persons, and funding diversification on community social performance. The research develops an integrated analytical framework that combines financial and social dimensions within a single empirical model. By linking indicators of organisational sustainability with measures of community outcomes, the study provides evidence regarding the mechanisms through which financial resource management contributes to the achievement of social objectives. The findings indicate that efficient resource allocation, the reinvestment of financial surpluses, and diversified funding structures are associated with stronger community-level results and greater organisational sustainability. The study contributes to the growing literature on the social economy and social entrepreneurship by providing empirical evidence on the relationship between fund management practices and community development outcomes. Beyond its academic contribution, the research offers practical insights for managers, policymakers, and practitioners involved in designing strategies aimed at strengthening the long-term sustainability and effectiveness of social enterprises in Romania. |
| JEL classification: | L31; D24; H43; O15; R11 |
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L31; D24; H43; O15; R11
