Successful Finnish Social Enterprises: A Case Study of Foundation-Based Social Enterprises in the Nordic Welfare Context

Abstract

Research on social enterprises in the Finnish context remains scarce, especially regarding large, foundation-based welfare actors. This study examines how foundation-based social enterprises in Finland articulate and operationalise social responsibility within the Nordic welfare-state context. Social enterprises in Finland operate within a distinctive Nordic welfare framework, where their primary purpose is to generate social value while maintaining economic viability. Despite their growing relevance in addressing societal needs, Finnish examples have received little attention in the international literature. Thus, this study contributes to addressing this gab. Specifically, the study presents and discusses the concept of social enterprise as defined in the Finnish context while focusing on its legal and operational characteristics. Drawing on publicly available organisational communications and a qualitative, interpretive analysis, we analyse three prominent influential Finnish foundation-based social enterprises selected for their scale, longevity and social impact. Each case is described in detail, covering their origins, mission, core activities, and the social challenges they aim to address.

The findings show how foundation ownership supports the institutionalisation of social responsibility through long-term governance arrangements that limit profit distribution and routinise reinvestment for community benefit, while also revealing variation in size, sectoral focus, and sustainability strategies within the Finnish model. The analysis focuses on their operation model and how social responsibility becomes institutionalised over time. Therefore, rather than aiming to represent all social enterprises in Finland, this study offers an in-depth examination of specific cases. By situating these cases in the Nordic welfare-state setting, the article contributes to discussions on social entrepreneurship, hybrid welfare arrangements, and the evolving division of responsibility between public institutions and foundation-based actors.