NU Bulacan Acceptance of Philanthropy's Role in Scaling Social Enterprises PDF
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NU Baliwag Incorporated
2024
Cruz, Jamil Ashby DG., Guerrero, Khristien Rose S., Lopez, Hazel Anne DC., Perez, Cassandra Lorraine C., Umali, Eunice Elrich Ivy P.
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This research study explores the attitudes of senior high school students at NU Bulacan Incorporated regarding the role of philanthropy in scaling social enterprises. The study aims to understand how philanthropic efforts can contribute to social enterprise growth and sustainability.
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ACCEPTABILITY OF PHILANTHROPY’S ROLE IN SCALING SOCIAL ENTERPRISES AMONG SBA STUDENTS AT NU BULACAN INCORPORATED A Research Study Presented to the Faculty of NU Bulacan Incorporated – Senior High School Baliwag City, Bula...
ACCEPTABILITY OF PHILANTHROPY’S ROLE IN SCALING SOCIAL ENTERPRISES AMONG SBA STUDENTS AT NU BULACAN INCORPORATED A Research Study Presented to the Faculty of NU Bulacan Incorporated – Senior High School Baliwag City, Bulacan By: Cruz, Jamil Ashby DG. Guerrero, Khristien Rose S. Lopez, Hazel Anne DC. Perez, Cassandra Lorraine C. Umali, Eunice Elrich Ivy P. September 2024 1 CHAPTER 1: INTRODUCTION Background of the Study In recent years, the role of philanthropy in supporting the growth of social enterprises has gained significant attention globally. Social enterprises, which combine social missions with business approaches, often struggle to scale due to limited financial resources (Schätzlein, Schlütter, & Hahn, 2022). Philanthropy, in the form of grants, donations, and impact investing, has emerged as a key enabler, providing much-needed capital for growth and expansion (Lall & Park, 2020; Nachyla & Justo, 2024). This trend has been particularly evident in developing countries, where philanthropic organizations are increasingly collaborating with social enterprises to address pressing social issues, such as poverty, education, and healthcare (Horoszowski, 2022; Quaye et al., 2024) The growing convergence of philanthropy and social entrepreneurship reflects an increasing acknowledgment that these sectors can collaborate to address larger social challenges. Philanthropic grants can provide social enterprises with the opportunity to focus on developing their workforce and capabilities, without the pressure to prioritize immediate financial gains (Lall & Park, 2020). This support can help social enterprises reach broader markets, scale their impact, and build long-term sustainability. Philanthropic support goes beyond funding, often offering mentorship, strategic advice, and access to networks that help social enterprises become sustainable and scale their impact (Barresi, 2023). By strategically investing in social enterprises, philanthropic efforts can play a pivotal role in amplifying the social outcomes these ventures seek to achieve (Roberts, 2022). Building on this, the study seeks to assess the acceptability of philanthropy's role in scaling social enterprises among SBA students at NU Bulacan Incorporated. It aims to explore students' attitudes, and awareness of how philanthropic efforts can contribute to the growth and sustainability of social enterprises. Specifically, it seeks to determine the extent to which these students believe philanthropy contributes to scaling social enterprises in various areas such as capital, networks of relationships, mutual exchange and reciprocity, collective action, and social cohesion and inclusion. Additionally, the study aims to formulate possible recommendations based on the 2 findings to enhance understanding and engagement with philanthropic support in social entrepreneurship. The findings of this research will benefit several key entities. Social entrepreneurs will gain insights from the attitudes of SBA students at NU Bulacan Incorporated, enabling them to refine their strategies for social betterment. Philanthropic organizations can tailor their funding programs based on students' attitude for more impactful contributions to social enterprises. SBA students will enhance their understanding of how philanthropy supports social venture growth, aiding their future business strategies. Non-Governmental Organizations (NGOs) will refine their project strategies through student perspectives, improving their initiatives. Investors will use the study's insights to make informed decisions and adjust their investment strategies. Policy makers will apply insights from student attitudes to create effective policies that promote philanthropy. Additionally, the findings can help social enterprises and philanthropic organizations better address the needs of the underprivileged, leading to more effective outreach and support. Lastly, this research will serve as a reference for researchers and future researchers exploring the relationship between philanthropy and social entreprises. 3 Statement of the Problem This research aims to explore the attitudes of SBA students at NU Bulacan Incorporated towards philanthropy's role in scaling social enterprises. It will analyze students' viewpoints to gauge the extent of their agreement on how philanthropic activities drive the growth and development of social enterprises, and evaluate their consensus on their effectiveness. The study sought answers to the following questions: 1. What is the demographic profile of the respondents in terms of: a. Age b. Gender c. Course d. Year level they took Entrepreneurship Subject 2. To what extent do SBA students of NU Bulacan Incorporated believe that philanthropy contributes to scaling social enterprises in the following areas? a. Capital b. Network of Relationship c. Mutual Exchange and Reciprocity d. Collective Action e. Social Cohesion and Inclusion 3. What possible recommendations can be drawn from the findings of the study? 4 Theoretical Framework Social capital refers to the networks of relationships among people that facilitate cooperation and provide access to resources (Kelton, 2024). In this model, social entrepreneurship thrives through the interconnected influence of three key forms of social capital: bonding, bridging, and linking social capital. Bonding social capital refers to the strong ties within close-knit groups, such as family and close friends (Putnam, 2000 as cited in Tahlyan et al., 2022). These relationships are characterized by trust, emotional support, and shared norms. In the context of social entrepreneurship, bonding social capital provides the foundational support entrepreneurs need to develop their ideas and maintain resilience. This form of social capital helps build the trust and solidarity essential for launching and sustaining social ventures. On the other hand, bridging social capital connects individuals across different social groups or communities, promoting access to new information, diverse perspectives, and broader networks (Putnam, 2000 as cited in Tahlyan et al., 2022). For social entrepreneurs, bridging social capital fosters innovation and creativity by allowing them to tap into diverse knowledge and resources. These connections are crucial for overcoming the limitations of insular networks and enabling the flow of novel ideas and solutions. Lastly, linking social capital represents the vertical relationships between individuals and institutions or authorities, such as government agencies or financial organizations (Khalil, 2021). These connections enable entrepreneurs to access formal resources, such as funding, legal support, and policy advocacy. Linking social capital is particularly important for scaling social ventures and ensuring long-term sustainability, as it provides the necessary external resources to operate effectively in a broader system. The arrows connecting these forms of social capital suggest an ongoing, reciprocal interaction between bonding, bridging, and linking. Each type of social capital supports and enhances the others, creating a dynamic ecosystem where social enterprises can thrive. By leveraging these interconnected forms of social capital, 5 social entrepreneurs can mobilize the resources, trust, and networks needed to address social challenges and create lasting impact. INDIVIDUAL ( Social Entrepreneur) INSTITUTIONS GROUPS ( Entities, Supporters, ( Participants, Donors, NGOs, Cooperatives etc.) Volunteers etc. ) Figure 1. “Social Capital as a Factor Supporting the Development of Social Entrepreneurship.” By Hidalgo, Gisele & Monticelli, Jefferson & Bortolaso, Ingridi. (2021). The social capital theory will be used in the study to assess how philanthropy—as a key example of social capital—impact the success of social enterprises. The study will examine the interconnected forms of bonding, bridging, and linking social capital to understand their role in providing access to resources, innovation, and external support essential for social ventures. By integrating this theory, the research will evaluate how these relationships, with a particular focus on philanthropic contributions, enhance the resilience and development of social entrepreneurs. This analysis will highlight how philanthropy, as a form of social capital, collaborates with other social ties to create a dynamic ecosystem that drives social innovation. 6 Conceptual Framework The paper's conceptual framework is based on the Input-Process-Output (IPO) model, which is well-suited to the nature of the study. This conceptual framework grounds the research process by utilizing a systematic approach to explore entrepreneurial students’ attitudes towards philanthropy in scaling social enterprises. It achieves this by clearly illustrating each stage and element throughout the paper. Input Process Output General demographic Descriptive Research Contribution of the data of respondents according to: Study a. Age Data Collection a. Provide valuable b. Gender c. Course a. Survey of SBA insights into how d. Year they took Students at NU SBA students Entrepreneurship Bulacan subject. Incorporated views philanthropy as a SBA students view on how philanthropy Data Analysis and tool for creating contributes to scaling effective and Interpretation social enterprises in terms of: a. Statistical socially a. Capital conscious Analysis b. Network of Relationship business models, c. Mutual Exchange and Reciprocity Interpretation of demonstrating d. Collective Action Data how philanthropy e. Social Cohesion a. Finding and can benefit both and Inclusion Recognizing businesses and Possible significant underserved Recommendations factors. populations while b. Drawing helping social conclusions entrepreneurs enhance and expand their social impact. Figure 1. Conceptual Framework: IPO Model 7 The first phase, input (I), identifies the general demographic and key variables to be measured. In this initial stage, the study will explore students’ attitudes towards philanthropy's role in relation to social enterprises, specifically examining its importance, impact on sustainability, and potential for future growth. According to Giloth (2019), philanthropic support has increasingly influenced economic development. Thus, investigating SBA Students' viewpoints on philanthropy could provide valuable insights into its effectiveness as a tool for social and business impact. Having identified the data needed from the input stage, the process (P) involves the procedure for data collection and analysis. A survey will be disseminated to SBA students at NU Bulacan Incorporated. To gather measurable information, the survey will use a 4-point Likert scale. The collected data will then be thoroughly analyzed and interpreted using statistical methods to produce solid and objective findings. Lastly, the output (O) involves summarizing and synthesizing the results of the research. This stage provides a summary of the main findings and outlines recommendations for future research and practical applications. It serves as a foundation for the subsequent chapters, providing conclusions and recommendations for future researchers and the proponents of the study. Scope and Delimitations of the Study The purpose of this study is to investigate the attitudes of SBA students at NU Bulacan Incorporated towards philanthropy's role in scaling social enterprises. Using a 4-point Likert scale survey methodology, the study will gauge the extent of their agreement on how philanthropic activities influence the growth of social enterprises in terms of capital, networks of relationships, mutual exchange and reciprocity, collective action, and social cohesion and inclusion. Additionally, the study will assess the level of consensus among students regarding these attitudes and provide possible recommendations to enhance understanding and engagement with philanthropic support in social entrepreneurship. This research is limited to SBA students from NU Bulacan Incorporated, specifically focusing on those who have already taken their entrepreneurship subject 8 and their attitudes towards philanthropy’s role in scaling social enterprises. The study excludes perspectives from social enterprise founders, donors, or other entities, as it is specifically concerned with the views of students. The geographical scope is restricted to NU Bulacan Incorporated, which may limit the applicability and generalizability of the findings to entrepreneurial students outside this institution or region. Additionally, this study concentrates on students' attitudes, rather than actual philanthropic practices or behaviors, providing insight into their beliefs rather than their actions. The findings may not reflect the views of students from different fields of study, institutions, or backgrounds, and thus may not represent a wider entrepreneurial student population. Significance of the Study This study seeks to investigate the attitudes of entrepreneurial students towards the role of philanthropy in scaling social enterprises. By assessing the extent to which students agree on philanthropy’s contribution, the research will highlight how philanthropic activities are perceived not only as benefiting underprivileged communities but also as enhancing the growth, sustainability, and success of social enterprises. The findings of this research will prove beneficial to the following entities: Social Entrepreneurs. The attitudes of SBA students at NU Bulacan Incorporated towards philanthropy can provide social enterprises with valuable insights to improve their strategies and better achieve their goals for social betterment. The findings will highlight emerging trends, preferences, and expectations that social entrepreneurs can use to refine their approaches for addressing social issues more effectively. Additionally, social entrepreneurs will gain a deeper understanding of how philanthropic support can be leveraged to enhance both their social impact and organizational growth. Philanthropic Organizations. By understanding how entrepreneurial students perceive philanthropy and its role in scaling social enterprises, philanthropic organizations can tailor their strategies to create more targeted and impactful funding programs. This insight will enable them to refine their approaches to garner greater support for social enterprises. Additionally, by leveraging students' perspectives as future entrepreneurs, philanthropic organizations can 9 enhance their contributions and drive substantial social impact through more informed and strategic support initiatives. SBA Students. This research will provide students at NU Bulacan Incorporated with a deeper understanding of how philanthropy contributes to the growth and sustainability of social enterprises. By exploring their own attitudes and the consensus among their peers, students will gain insights into how philanthropic activities can be leveraged to drive the development of social ventures. This knowledge will be particularly valuable as they reflect on their future roles as business endeavors, helping them integrate philanthropy into their business strategies for greater social impact and financial success. Non-Governmental Organizations (NGO). Although social enterprises and NGOs differ in their funding mechanisms, they share the common goal of addressing social issues. Non-profit institutions have begun incorporating business strategies to achieve these social goals. By understanding entrepreneurial students' viewpoints on philanthropy, NGOs can refine their strategies and integrate these insights into their projects, leading to more appealing and large-scale projects that resonate with both the broader public and emerging entrepreneurs. Investors. Social enterprises often receive support and funding from investors. This study will offer valuable insights into the nature of social enterprises and how students view their philanthropic aspects. With this, investors can make more informed decisions, refine their investment strategies, and target promising institutions, ensuring that their investments contribute effectively to social change. Policy Makers. Insights into students' attitudes toward philanthropy and its role in scaling social enterprises can provide policy makers with valuable data for formulating policies. This information will enable policy makers to design policies that effectively promote philanthropy and support social entrepreneurs. The Underprivileged. The findings of this study can assist in improving how social enterprises and philanthropic organizations address the needs of 10 underprivileged communities. More tailored support programs can be developed, and outreach efforts can be enhanced based on this understanding, leading to more widespread and effective aid. Additionally, by highlighting social enterprise business models, this research can inspire and empower future entrepreneurs to advocate for and contribute to improving conditions for underprivileged populations. Researchers. This study offers valuable insights for the researchers by providing a detailed analysis of entrepreneurial students' attitudes towards philanthropy's role in scaling social enterprises. By examining students' agreement on the impact and effectiveness of philanthropic activities, researchers can gain a clearer understanding of these dynamics and their implications for social enterprise growth. This research serves as a reference point for refining existing theories, validating findings, and exploring further questions related to philanthropy and entrepreneurship. Future Researchers. The findings of this study provide a valuable foundation for future research. This study can serve as a key reference for exploring similar topics and can be adapted or expanded upon to further investigate the relationship between philanthropy and social entrepreneurship. Definition of Terms Bonding Social Capital - The trust, norms, and networks of support formed in close-knit groups like family and close friends. Bridging Social Capital - Social capital that connects people from diverse backgrounds, enabling access to new information and resources. Entrepreneurial Students - Students engaged in the study and practice of entrepreneurship, particularly those who aspire to start or manage businesses. Linking Social Capital - The relationships between individuals and institutions or authorities, such as governments or financial organizations, which provide formal resources like funding and support. Philanthropy - The act of donating money, goods, services, or time to support social causes and improve societal well-being. 11 Social Capital - The networks of relationships among people that enable society to function effectively, often divided into bonding, bridging, and linking social capital. Social Enterprises - Businesses that aim to solve social, cultural, or environmental problems while maintaining financial sustainability. Social Entrepreneurship - A form of entrepreneurship that focuses on developing solutions to social, cultural, or environmental issues while ensuring financial sustainability. Social Innovation - The process of developing and deploying effective solutions to challenging and often systemic social issues in support of social progress. Sustainability - The ability of an organization, particularly social enterprises, to maintain operations and impact over the long term through consistent financial and resource management. Acronyms SBA – School of Business and Accountancy IPO - Input-Process-Output Model NGO - Non-Governmental Organization 12 CHAPTER 2: REVIEW OF RELATED LITERATURE AND STUDIES This chapter reviews relevant literature related to the topic, specifically examining previous studies that inform the research titled "Acceptability of Philanthropy's Role in Scaling Social Enterprises Among SBA Students at NU Bulacan Incorporated." By identifying gaps in existing research, this chapter aims to provide a comprehensive synthesis that enhances understanding and contextualizes the investigation. Introduction to Philanthropy Philanthropy has a big and crucial role in providing social responsibility and community engagement among young people. According to Vallely (2020) the concept of philanthropy is closely tied with the idea of altruism, an unselfish motive in imparting welfare for others (Merriam-Webster, 2024), with the term having been coined by Augeste Comte in the nineteenth century. The notion of philanthropy existed way before the term was conceived with philanthropic groups existing in ancient civilizations of the Middle East, Greece, and Rome (Britannica, 2024). Acts of philanthropy stem from the interest of three parties according to Valleyly, the donor, recipient, and wider society. It poses the question of why donors give and what they gain from doing such noble acts. A circulating idea is that though philanthropists don’t gain material or economic benefits they continue to pursue this act due to the psychological benefits that are obtained from doing good service for others. Regardless of the motive, the impact and good done by philanthropy is undeniable, especially in the modern times. With various foundations reaching out and giving a hand to the unfortunate. Using philanthropy as a business tool for social entrepreneurship may seem contradictory, with the nature of philanthropy not prioritizing momentary gain seeming to clash with a business’ goal to achieve economic success. However stated by Harvey et al., (2019) entrepreneurial philanthropy focuses on the welfare aspect being pioneers for a not-for-profit enterprise but rather utilizing the profit garnered to further help in scaling the entity’s social impact, as the reward organizations with a philanthropic model seek cannot be monetized due to its social value. Philanthropy as 13 a tool for entrepreneurship allows businesses to not only reap profit but along with being another outlet to promote social change with its social influence having the potential to benefit those in need. Furthermore, when it comes to student entrepreneurship, philanthropy gives the opportunity for the new generation of entrepreneurs to participate in charitable giving whilst keeping a business savvy outlook. In 2023, a study conducted by Rozansky and Matthew, stated the school taught philanthropy in 33 courses supported by the Learning by Giving Foundation. The students who participated with the cocurricular philanthropy instruction successfully built a culture of giving (Campbell et al., 2023). With those students that volunteer leaving significant impact on their communities by addressing social concerns and making a positive difference. Introduction to Social Enterprises Social enterprises play a vital role in addressing pressing social challenges and fostering empowerment, particularly among marginalized groups such as women. Braulio Pareja-Cano, Carmen Valor, and Arturo Benito (2020) conducted an ethnographic case study in South Africa that illustrates how social enterprises can provide essential resources, including education, financial support, and networking opportunities. These resources empower women to pursue personal and collective goals, challenging traditional gender roles and societal norms that often restrict their potential. The study presents an empowerment model that highlights how social enterprises act as catalysts for social change, promoting gender equality and social justice. In light of recent global challenges, the significance of social enterprises has only intensified. Halsall et al. (2022) emphasize that social enterprises are uniquely positioned to tackle social inequalities and environmental issues exacerbated by the COVID-19 pandemic. By delivering tailored goods and services to meet local community needs, these enterprises create pathways for sustainable development. The authors propose an innovative educational framework that integrates social enterprise concepts across various disciplines—such as criminology, healthcare, and environmental studies—equipping students with the necessary knowledge and skills to think globally and act locally. This interdisciplinary approach underscores the 14 potential of social enterprises to drive systemic change and create a more equitable world. The emergence of youth-led social enterprises has further transformed the landscape of social entrepreneurship. Alzate et al. (2024) explore how young entrepreneurs are increasingly creating social enterprises to address economic and social challenges. Utilizing data from 2010 to 2022, the researchers found that youth social enterprises have become integral to the global economy, reflecting the creativity and drive of young people in navigating new markets. Key areas such as innovative business strategies and social change illustrate how these enterprises leverage entrepreneurial skills to effect positive societal change. The study also highlights the role of youth social enterprises in job creation and national development, indicating their importance for both economic and social progress. Research by Aruleba et al. (2024) focuses on the potential of student-led social enterprises, particularly through organizations like Enactus, which encourages students to apply their entrepreneurial skills to solve social problems. Interviews with students revealed that participation in these enterprises enhances leadership and communication skills, while also providing valuable insights into business opportunities and project management. The study advocates for greater collaboration between non-governmental organizations (NGOs) and social enterprises to expedite solutions to social issues. Overall, the integration of social enterprises into various sectors and the empowerment of youth and women demonstrate their transformative potential. By fostering innovation and addressing societal challenges, social enterprises not only contribute to individual empowerment but also promote broader social change and development. As the landscape of social entrepreneurship continues to evolve, understanding the mechanisms through which these enterprises operate becomes essential for maximizing their impact and sustainability. Philanthropy as a Catalyst for Scaling Social Enterprises According to Merriam-Webster, a catalyst is "something that arouses action or activity" (Merriam-Webster, n.d.). A catalyst, within the context of social enterprises, pertains to philanthropic support acting as the driving force in accelerating its market 15 development, by providing opportunities, resources, and connections to talented potential-filled social entrepreneurs more efficiently than would be possible without any support. According to a study conducted by Lall and Park (2020) philanthropic grants can help the enterprise through the improvement of their economic performance and either by attracting stakeholders to lend commercial capital through the exhibition of the organization’s legitimacy in addressing contemporary issues Social enterprises as per a paper written by Islam (2021), scale the business through two strategies, organizational growth and ecosystem growth. Scaling the enterprise in the means of organizational growth encompasses factors relating to that from the standpoint of a conventional business model, with product and geographic expansion in account to increase the size of beneficiaries and promote the products/services offered by the enterprise that addresses targeted social issues. On the other hand, ecosystem growth is more involved with the social impact aspect of the firm through networks (investment capital, institutions, mentors, policy and governance) to foster a supportive environment for the enterprise to strive in and attain the support needed. Philanthropy as a tool in scaling social enterprises opens new doors in the business sector, through philanthropic grants, that aligns well with the strategies utilized by social entrepreneurship. Though there is a vast market to reach out to for traditional enterprises to seek capital and funds for the business, 81% of these entities are denied the sponsor (Lall and Park, 2020). However, due to philanthropic means third-party foundations enter the social entrepreneurial landscape, providing the firm further opportunities to garner capital for business growth. Additionally, social enterprises may pursue fundings from third-party foundations that align with their social values, ensuring an ethically oriented relationship between the organizations. These fundings scale the impact of social ventures proving critical for the institution to expand its market and voice of advocacy. Beyond the Roadblocks: Exploring the Barriers to Social Enterprise Growth To contextualize growth in the business sector it is measured as an entity's capacity to generate sufficient economic gain to then expand the company and its market (Dang et al., 2019). Social enterprises, a philanthropic driven structure define growth not only through the augmentation of income generation but also in addition 16 with the firm’s pursuit in magnifying the enterprise’s social impact, with this factor outweighing the latter in terms of priority (Farhoud et al., 2019). Thus, the growth of a social enterprise could be viewed as development on social issues rather than merely the face value of commercial success. Impelled with the dual-mission to not only grow the enterprise economically and simultaneously work on social developments, social enterprises encounter an array of barriers that hinder the scaling of both the firm and its cause. Institutional Constraints: How the Norm Impede Social Enterprise Growth Social enterprises differ from firm to firm, each addressing a contemporary issue through integration of business models (Tykklainen and Ritala, 2019). Strategies that some enterprises employ involve the enlargement of job opportunities for those in need, prioritizing the minorities when hiring employees, fostering a community where applicants who are overlooked due to their disabilities are now recognized. In a study conducted by Gurlek et al. (2024) businesses with employees of that of a marginalized group garner traction from consumers due to empathy that the public hold for these underrepresented groups, however, on the flip side of the coin some consumers exhibit discriminatory behaviors towards said employees, opting to support more traditional entities disrupting the income that social enterprises generate due to the deficiency of a consistent pool of clients. For social enterprises with a commercial approach, making use of the market industry by selling products to earn a profit for a cause. The firm adopts a commercial outlook through the trade (Bull and Ridley- Duff, 2019). A drawback for this certain model is that in addition to encompassing both profitability to produce merchandise and raising funds for a social cause, this constrains social enterprises with this business model to opt for higher prices on the spectrum.The costly price though for a good purpose does not market well for consumers, as some lack the awareness of the specific nature of social enterprises due 17 to this type of model being a newer trend these types of entities with this strategy struggle to foster sturdy brand and consumer relationships, falling lackluster when scaling the business, struggle to identify the right audience. The Funding Gap: Economic Obstacles in Scaling Social Enterprises According to Steinare and Teasdale (2019), in a field where resources are catered for the masses of entities with the general goal of attaining economic success, social enterprises fall back prioritizing its social mission over earning a profit. Social enterprises with their distinctive nature are independently run and rely on fundings to pursue social value. This specific enterprise is akin to that of Non-governmental organizations (NGOs) with both operating for the purpose of societal betterment (Mikolajczak, 2020) with cash flow circulating from donations to support their cause. However, unlike NGOs that are non- profit and receive fundings from charities and similar foundations, the hybrid disposition of social enterprises, working towards social change and earning profit, infringes the policies of charitable lenders further minimizing the small pool of possible investors. Due to the firm’s niche initiative of social value over economic value, accumulating steady finance proves difficult. Though the concept of a business that earns profit while addressing social issues sounds promising, providing it with the perfect pitch to amass capital for a start-up, in reality social enterprises have been proven to lack the support to garner sufficient funds in order for the business to further grow, impeding the overall goal of aiding in community discourse. For this reason, the social organizations fall short in identifying willing venture capitalists, as investing in social enterprises are seen as not profitable and a risk for investors as they differ from traditional business models. Balancing Profit and Principles: The Value-Based Constraints of Social Enterprises 18 Based on a study conducted by Davies et al. (2019), the enterprise's ethical values itself tend to hinder the growth of the organization, as the entities purposely decline loans and funds from foundations that don’t align with the enterprise’s values. On top of this, social enterprises tend to be selective in factors that contribute to the operation of the business sourcing finance, raw materials, and other resources from outlets with similar moral codes, putting ethics above convenience, inherently, creating further hurdles to be tackled. Social enterprises ensure that their means of profits don’t breach the mission for social impact and that the commercial performance and operations of the business sticks with the firm’s ethical values through all levels. The growth of the enterprises is connected with its philosophy of attaining a broader reach and growth whilst preserving the social value of the business. Social enterprises maneuver the business sector through the motives of a philanthropist, guaranteeing that morality and the standards of the entity are not compromised in the pursuit of development. Due to this idealistic attitude, tackling the economic side of things poses great strain to the enterprise’s growth because of the small and finite sources that could support and fuel the growth of the organization. Lastly, ethical principles also have a hand in the workings of the enterprise. These principles impact the entity’s structure due to the basis of fairness for all elements, warranting that the activities of the business abides with the principles of social and environmental fairness. These principles simply state the significance of acknowledging the social and environmental externalities when it comes to economic decisions and matters of the firm. 19 Synthesis Philanthropy plays a vital role in fostering social responsibility and community engagement, particularly among younger generations. Vallely (2020) notes the deep connection between philanthropy and altruism, tracing its roots to ancient civilizations like Greece and Rome (Britannica, 2024). While philanthropy may not yield direct economic benefits for donors, the psychological rewards and positive social impact are significant. It helps bridge the gap between profit-making and social change, encouraging businesses to leverage their influence for the greater good (Harvey et al., 2019). Consequently, social enterprises increasingly rely on philanthropic support to enhance their social impact. The significance of social enterprises has grown as they address global challenges and promote social equity. These enterprises not only provide essential resources to marginalized groups, especially women, but also challenge traditional societal norms (Pareja-Cano et al., 2020). The COVID-19 pandemic has further underscored their importance in tackling inequalities and environmental issues (Halsall et al., 2022). By fostering innovation and empowerment, social enterprises contribute to sustainable development and systemic change. Youth-led social enterprises, in particular, are becoming integral to the global economy, employing entrepreneurial strategies to create jobs and drive national development (Alzate et al., 2024). Philanthropy serves as a catalyst for scaling social enterprises by providing vital resources, connections, and legitimacy. Lall and Park (2020) highlight that philanthropic grants can enhance the economic performance of social enterprises, attracting stakeholders and commercial capital. Social enterprises typically scale through organizational growth—expanding their product offerings and geographic reach—and ecosystem growth, which focuses on building supportive networks and institutional partnerships (Islam, 2021). This dual approach enables social enterprises to achieve both financial sustainability and increased social impact. Despite their growth potential, social enterprises encounter significant barriers, particularly related to societal norms and discrimination. Enterprises prioritizing the hiring of marginalized groups often face a mixture of empathy and prejudice from consumers (Gurlek et al., 2024). Moreover, those relying on commercial models 20 struggle with high costs as they balance profitability with their social mission (Bull & Ridley-Duff, 2019). These challenges hinder their ability to cultivate consistent relationships with their audience, complicating efforts to scale effectively. Economic challenges further impede social enterprises. Steinare and Teasdale (2019) argue that these organizations prioritize social value over profit, making it difficult to secure stable funding. Unlike NGOs, which receive donations from charitable foundations, social enterprises struggle to attract investors willing to support their dual mission. This financial scarcity limits their growth and expansion potential, as traditional venture capitalists often view social enterprises as too risky. Maintaining a balance between profit and principles is another significant challenge for social enterprises. According to Davies et al. (2019), these organizations often reject funding from sources that conflict with their ethical values and prioritize sourcing materials from aligned outlets. While this commitment to ethics strengthens their integrity, it also restricts access to resources necessary for expansion. The ongoing tension between economic growth and ethical values defines the operations of social enterprises, as they strive to scale while remaining committed to social justice and environmental sustainability (Farhoud et al., 2019). Thus, while philanthropy offers crucial support to navigate these challenges, the growth of social enterprises remains constrained by societal norms, economic barriers, and ethical considerations. 21 CHAPTER 3: METHODOLOGY OF THE STUDY This chapter outlines the methodology, research design, and research instruments to be used in the study. It includes a detailed discussion of the respondents and the sampling techniques employed for participant selection. Additionally, this section covers the statistical treatment and ethical considerations of the research, offering supplementary insights into the processes involved. Finally, the chapter elaborates on the data gathering procedures, providing clarity on the upcoming data collection efforts and setting expectations for the paper. Methods and Techniques Used Research Method This research will adopt a quantitative approach, employing methods such as surveys to objectively measure attitudes and their intensity using a Likert scale (Pandey et al., 2023; Tanujaya et al., 2023). This approach is essential as it provides numerical data that allows for precise analysis of trends and patterns, leading to valid conclusions. Research Design The descriptive research approach focuses on the "what" rather than the "why" of research, exploring the characteristics of the population or phenomenon being studied (Manjunatha, 2019). In conjunction with the quantitative research approach, the researchers will employ descriptive research to identify trends and patterns in the attitudes of SBA students toward philanthropy's role in scaling social enterprises. Sample and Sampling Design Respondents of the Study The participants in this study will be College Students from the School of Business and Accountancy (SBA) at National University (NU), Baliwag City, Bulacan. Given the sizable population of SBA College Students at NU Baliwag, this study will include [number] respondents, as this sample size will provide an adequate margin for error (Andrade, 2020). 22 Sampling Technique This paper will utilize a stratified sampling technique to gather respondents. According to Bisht (2024), stratified sampling is a probability sampling method that selects participants randomly while ensuring representation from each subgroup, or stratum, within the population. This method aims to eliminate bias and ensure that all relevant strata are included. The procedure involves dividing the population into specific subgroups based on characteristics relevant to the research objectives. From each stratum, respondents will be randomly selected to participate in the online survey, helping to avoid underrepresentation or overrepresentation of certain groups and ensuring reliable data. In implementing this technique, the researchers will categorize the SBA students of NU Baliwag into three subgroups: those in BS Business Administration Major in Financial Management, BS Business Administration in Marketing, and BS Accountancy, all of whom have taken or are taking entrepreneurship as a subject. From these strata, the researchers will randomly select a total of [total number] participants, with [number] respondents from each group. The sampling of respondents will be conducted systematically, adhering to established research guidelines. Data Gathering Procedure To gather the necessary data to achieve the paper's objectives, the researchers will develop comprehensive questionnaires aligned with the study's rationale. These survey questions will reflect the principles of the underlying theory, ensuring effective responses to the research questions and facilitating accurate findings. The questionnaires will be validated by the research adviser to ensure clarity and compliance with the academy's policies. The survey will be administered to [number] random respondents selected through the stratified sampling technique, and the researchers will monitor the response rate to ensure systematic data collection. To protect respondents' personal information, their identities will remain anonymous in accordance with privacy regulations. The collected data will be analyzed to identify significant elements such as the mean, median, and mode, aiding in the formulation of conclusions for the paper. 23 Research Instrument The researcher will employ survey questionnaires to collect data. This method offers cost-effectiveness, accessibility, and the ability to reach a broad and diverse population, enabling efficient gathering of comprehensive insights (Kuphanga, 2024). The questionnaires will be organized into six (6) parts, comprising a total of 24 questions. Part 1 will focus on gathering the demographic profile of the respondents, which will include their age, gender, course, and year level in the Entrepreneurship Subject. Part 2 will examine the extent to which SBA students at NU Bulacan Incorporated believe that philanthropy aids in scaling social enterprises, particularly in terms of capital. Part 3 will examine the extent to which SBA students at NU Bulacan Incorporated believe that philanthropy aids in scaling social enterprises, particularly in terms of network of relationships. Part 4 will examine the extent to which SBA students at NU Bulacan Incorporated believe that philanthropy aids in scaling social enterprises, particularly in terms of mutual exchange and reciprocity. Part 5 will examine the extent to which SBA students at NU Bulacan Incorporated believe that philanthropy aids in scaling social enterprises, particularly in terms of collective action. Part 6 will examine the extent to which SBA students at NU Bulacan Incorporated believe that philanthropy aids in scaling social enterprises, particularly in terms of social cohesion and inclusion. The questionnaire will consist of close-ended questions, and respondents will rate each statement based on their opinions. They will have four response options: strongly agree, agree, disagree, and strongly disagree, utilizing a 4-point Likert Scale. This format will enable respondents to express their views clearly, enhancing the understanding of their levels of agreement or disagreement. The mean responses will 24 be interpreted using a specified scale to extract meaningful conclusions from the gathered data. Range of Values Scale Value Interpretation 3.26 – 4.00 4 Strongly Agree 2.51 – 3.25 3 Agree 1.76 – 2.50 2 Disagree 1.00 – 1.75 1 Strongly Disagree Table 1. Value of the Rating Scale Table Statistical Treatment The researchers will employ two statistical methods to analyze and interpret the data that will be collected from the survey questionnaires distributed to respondents. Frequency and Percentage Distribution. This method will provide a structured graphical representation of data, highlighting the percentage of responses for each data point or grouping of data points. Frequency and percentage distribution will be a commonly used technique for summarizing survey responses, often presented in tables, bar graphs, or pie charts (Journal of Visualized Experiments, 2022). The formula below will be utilized in the study to illustrate the demographic profile of the respondents. Where in, P percentage 25 f = frequency n = number of respondents Weighted Mean. It will be instrumental in calculating a theoretically expected outcome, especially when each outcome has varying probabilities of occurrence. This will involve summing the products of the weights and events (Taylor,S. 2023). The formula will be presented below and will be utilized in the study to analyze the survey questionnaire results. ∑ ∑ Where in, x = mean x = measurement of value w = number of measurement Ethical Considerations The researchers will ensure the application of essential research ethics to uphold the credibility of the study and safeguard respondent welfare. Informed Consent. Before agreeing to participate, respondents will be fully informed about the study's purpose and procedures. An informed consent form will be provided before and after data collection to confirm their willingness to participate. Anonymity and Confidentiality. The information gathered from the survey will be handled with strict confidentiality and anonymity, in accordance with the Data Privacy Act of 2012. It will be used solely for research purposes. Non-Maleficence. The researchers commit to the principle of ―do no harm,‖ ensuring that their actions do not cause suffering to respondents. 26 Honesty and Transparency. Researchers will maintain honesty and transparency throughout the data collection and presentation process to uphold integrity and avoid conflicts. Objectivity. To ensure the validity and credibility of the findings, the researchers will commit to objectivity and impartiality, avoiding falsification, fabrication, or any misleading information. Respect. Ethical responsibility will extend not only to participants but also to colleagues. The researchers will acknowledge everyone’s contributions, give appropriate credit, and foster a supportive research environment. 27