Has Social Entrepreneurship Reduced Economic Inequality Among Non-state Actors? A Systematic Review

Abstract

This paper explores the relationship between social entrepreneurship (SE) and economic inequality, aiming to
understand SE’s potential in addressing economic disparities among non-state actors. Social entrepreneurship, often
recognised for its capacity to create social value and drive social change, offers unique opportunities to tackle pressing
societal issues, including economic inequality. By leveraging innovative business models, SE can bridge gaps in income
distribution and create sustainable livelihoods for marginalised communities. However, understanding the extent of this
impact requires a closer examination of SE’s contributions to economic inclusion and equity. Through a systematic literature
review, as well as a bibliometric and content analysis of the selected studies, this paper investigates the growing body of
research on SE, identifying key themes, trends, and research gaps. The analysis reveals a global interest in SE, as evidenced
by an increasing number of publications over the past two and a half decades. This rise in academic attention reflects the
recognition of SE’s potential to address various social challenges. Despite this progress, the direct relationship between SE
and economic inequality remains underexplored. Most research has focused on SE’s social impact—such as community
development, poverty alleviation, and environmental sustainability—rather than its economic implications. The paper also
identifies core concepts associated with SE, including social entrepreneur, social enterprise, social innovation, social capital,
economic development, work and employment, and sustainable entrepreneurship. However, references to economic
inequality are often implicit rather than explicit, highlighting a gap in the literature. This suggests a need for more focused
research that examines how SE can effectively reduce economic disparities, particularly through income redistribution,
wealth creation, and access to economic opportunities for marginalised communities. Whilst SE has the potential to be a
powerful tool for reducing economic inequality, realising this potential requires addressing persistent challenges. Among
these challenges is the widening gap between low- and high-income sectors, which complicates SE interventions and limits
their transformative impact.