UC study reveals social enterprise wellbeing pressures

Social enterprises play an important role in supporting communities, creating jobs, encouraging ethical consumption and addressing social and environmental challenges.

But new Te Whare Wānanga o Waitaha | University of Canterbury (UC) research shows their long-term impact depends on more than good intentions. It also relies on the wellbeing of the people leading and managing them.

The study published in Social Enterprise Journal, Lived experience and well-being: implications for theory and practice in social enterprises, by UC Business School researchers Dr Nadeera Ranabahu and Professor Sussie Morrish, explores how lived experience shapes wellbeing within social enterprises and the communities they serve.

The researchers interviewed 21 founders and managers of social enterprises in Aotearoa New Zealand working across areas including health, disability employment, responsible sourcing, fair trade, sustainability, youth employment and volunteering. 

Dr Ranabahu says founders and managers are often driven by a strong sense of purpose, but the demands of running a mission-led organisation can create pressure, anxiety and burnout.

“Social enterprises are often focused on creating wellbeing for communities, but our research shows founder and manager wellbeing are also central to whether these organisations can sustain their impact,” she says.

“When founders are deeply connected to a social mission, that can create fulfilment, but it can also make it harder to switch off, set boundaries or accept that they cannot solve every issue at once.”

The study found that social enterprises need to balance community impact with strong internal company practices, including financial stability, safe working conditions, inclusive workplaces and realistic approaches to measuring impact. 

Professor Morrish says wellbeing should be built into how social enterprises operate, not treated only as an external outcome.

“Good intentions are not enough on their own. Social enterprises need the right support and systems to look after their people while delivering on their mission,” she says.

The researchers developed a framework showing how founder wellbeing, manager wellbeing, organisational practices and community wellbeing are interconnected.

Dr Ranabahu says the findings have practical implications for social entrepreneurs, funders, policymakers and support organisations. 

“If we want social enterprises to thrive, support needs to go beyond helping them deliver community impact. It also needs to help them build sustainable organisations and protect the wellbeing of the people doing the work.”