Title: Sharing a passion for the mission? Angel investing in social enterprises

Authors: Sallamaria Ala-Jääski; Kaisu Puumalainen

Addresses: School of Business and Management, Lappeenranta-Lahti University of Technology LUT, Lappeenranta FI-53851, Finland ' School of Business and Management, Lappeenranta-Lahti University of Technology LUT, Lappeenranta FI-53851, Finland

Abstract: Passion for a mission is an important factor for social entrepreneurs, but how do angel investors perceive passionate social entrepreneurs looking for funding? The opportunity nexus in social entrepreneurship and our propositions highlight the role and nature of passion when mission-driven social entrepreneurs are trying to secure funding from angel investors. To develop propositions, we build on previous studies in social entrepreneurship, business angel funding, and entrepreneurial passion complemented with qualitative data from eight field interviews. The results indicate angel investors recognise the opportunities in social entrepreneurship, but the mission can never replace the financial return. Without a functioning business model, accomplishing a social mission becomes impossible.

Keywords: angel investing; business angels; social entrepreneurship; entrepreneurial passion; social mission; social enterprise; venturing; passion for mission; entrepreneurial finance; field interviews.

DOI: 10.1504/IJEV.2021.114407

International Journal of Entrepreneurial Venturing, 2021 Vol.13 No.2, pp.165 - 185

Received: 14 Nov 2019
Accepted: 24 Jun 2020
Published online: 20 Apr 2021 *

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