Professors Sheila Cannon, Director of Engagement at the Trinity Centre for Social Innovation, Trinity Business School, and Concépcion Galdón, Vice Dean of Sustainability at IE University, co-authors of the recently published and AOM SIM 2025 shortlisted book Promise, Pitfalls, and Potential of Social Entrepreneurship: Positive Change Unleashed, explore some of the fundamental challenges facing social entrepreneurs as they venture into impact for the common good.    

Into the Lives of Social Entrepreneurs: Commitment, challenges, and solutions by Sheila Cannon, Concépcion Galdón, Tom Gamble, from an interview by Michelle Diaz.

Social Enterprise: Disagreement and difference in defining a complex concept

Different people and organizations approach social entrepreneurship from various angles, and the discrepancy in defining what constitutes social entrepreneurship is indeed a challenge. Should an alignment in criteria be made? “Not necessarily,” states Trinity Prof. Sheila Cannon, “the challenge of defining social entrepreneurship is one that we need to accept as inherently complex.” Indeed, both Profs. Cannon and Galdón agree that diversity is actually a strength of the field. “Rather than forcing a single, rigid definition,” adds Cannon, “it’s important to embrace a broad and inclusive approach that recognizes the value of different perspectives.”

For Profs. Cannon and Galdón, ultimately, the diversity of definitions can coexist and even complement one another as they allow for a richer understanding of the many ways social entrepreneurship can create positive change. “Rather than seeking a strict alignment, the focus could be on recognizing and respecting these diverse approaches while ensuring that they all contribute meaningfully to the broader mission of social impact.”

The pressure of the role and the ecosystems to support social entrepreneurs

The recently published book Promise, Pitfalls, and Potential of Social Entrepreneurship: Positive Change Unleashed features several chapters focusing on the challenges that would-be or established social entrepreneurs can face in their roles whom many refer to – for better or for worse – as “superheroes” in their own right. One of the key pressures that aspiring founders and startups face is the bias towards macro-level impact that can create transformational change. Is this bias justified or should there be more balance?  

For Prof. Concépcion Galdón at IE University, the bias towards macro-level impact, which seeks to create transformational change, is certainly well intentioned and often valuable, but it can sometimes overlook the value of incremental, localized efforts. “Social entrepreneurship is a diverse field, and while systemic change is important,” she says, “it’s crucial to recognize that not all ventures are positioned to drive macro-level transformations. As we discuss in Promise, Pitfalls, and Potential of Social Entrepreneurship: Positive Change Unleashed, there’s a need for balance. Founders should feel empowered to pursue the level of change that aligns with their mission, whether that’s at a local, national, or global scale. The pressure to always aim for macro-level impact,” adds Galdón, raising a red flag to would-be social entrepreneurs, “can stifle innovation at other levels and lead to burnout among social entrepreneurs.” In this context, support is vital. “A truly supportive ecosystem must be inclusive of all types of social enterprises, regardless of their legal form, scale or focus,” asserts Prof. Sheila Cannon.

In their book, Profs. Cannon and Galdón emphasize that different actors in the ecosystem are better suited to support different types of social enterprises. “To create a comprehensively supportive ecosystem, we need interventions and platforms that facilitate better collaboration and knowledge sharing between these actors,” says Prof. Cannon. “This includes providing tailored resources aimed at supporting collaboration, fostering partnerships that span different approaches to social entrepreneurship, and creating platforms various actors can engage with each other. The goal should be to ensure that all social enterprises, regardless of their size or mission, have access to the support they need to thrive.”

Social entrepreneurship and the funding funnel

Promise, Pitfalls, and Potential of Social Entrepreneurship identifies a further challenge to startups in that of funding their social enterprises. Often, the issue arises of funnelling for the same type of social enterprise, with funds missing out on other impact startups or social issues. Given this, what causes would the authors choose to funnel for funding?

“The concentration of funding towards certain types of social enterprises often leads to a narrow focus on a limited range of social issues,” asserts Concépcion Galdón. “To diversify impact, we need to broaden the scope of funding to include underrepresented causes. If we could choose a couple of causes to funnel more funding towards, they would be education and the creation of job/economic development opportunities driven by environmental sustainability, particularly in under-served regions.”

“These areas have far-reaching impacts,” adds Sheila Cannon, “influencing everything from economic development to public health. In our book, we argue that by expanding the funding landscape to support a wider variety of social enterprises, we can address more of the pressing challenges our world faces today.”

Perfection can come at a (human) price

One of the critiques mentioned in the book is that social entrepreneurship often tries to do too much, which can dilute impact and create confusion among stakeholders. “In Promise, Pitfalls, and Potential of Social Entrepreneurship,” states co-author Sheila Cannon, “we suggest that greater coherence can be achieved by focusing on alignment and collaboration. One approach is to streamline efforts around clearly defined missions and to prioritize partnerships that enhance collective impact. That said, simplification doesn’t mean reducing the scope of ambition – rather, it’s about ensuring that all efforts are strategically aligned and that resources are effectively utilized. By fostering more focused collaboration among social enterprises, we can create a more coherent and impactful ecosystem.”

Would it make sense to encourage a culture of less perfection, and more of learning from mistakes? Concépcion Galdón thinks yes. “Indeed, the tendency towards perfection in social entrepreneurship can be counterproductive, often leading to burnout and missed opportunities for impact,” she affirms. “In our book we advocate for a shift towards a culture that values learning from mistakes. Moreover, to foster this culture, it’s important to create safe spaces where entrepreneurs can share their failures and learn from each other without fear of judgment. Our advice to founders is to embrace imperfection as part of the journey.”

For Sheila Cannon, perfection is an illusion. “What truly matters,” she adds, “is resilience and the willingness to adapt and learn. By focusing on continuous improvement rather than perfection, social entrepreneurs can sustain their efforts and ultimately achieve greater impact.”

Useful links:

• Link up with Profs. Sheila Cannon and Concépcion Galdón on LinkedIn
• Join the 2025 AOM Copenhagen workshop The Social Impact of Academia and meet with Prof. Concépcion Galdón.
• Read the article The Paradox of our Times and a Key Role for Social Enterprise 
• Discover and buy the book Promise, Pitfalls, and Potential of Social Entrepreneurship: Positive Change Unleashed
• Visit the Trinity Business School and IE Business School websites.

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