Social entrepreneurship practices integrate aspects from the private, public, and non-profit sectors into a cohesive practice. This paper advocates for the integration of human resource development (HRD) research and practices into social entrepreneurship initiatives to drive progress and build effective organizations committed to positive social change and value creation. By exploring HRD insights on ethical organizational strategies, initiatives for workforce development, and their impact on employee engagement and attitudes, we contend that HRD professionals can significantly contribute to the success of social entrepreneurship.

Muhammad Yunus founded the microfinance organization Grameen Bank in 1983 to provide business loans to marginalized parties in Bangladesh who were excluded from traditional banking institutions. This endeavor gained international acclaim and led Yunus to adopt the moniker of a social entrepreneur and the recipient of the Nobel Peace Prize in 2006. However, Grameen Bank has faced numerous challenges throughout its four decades of operation, including accusations that it has strayed from its original social mission and engaged in exploitative practices such as charging high interest rates (Bangladesh Ministry of Finance, 2013). The criticisms ultimately led to the removal of Yunus as Managing Director in 2011. Yunus attributes the issues to political motives and cites differing ethical perspectives on the organizational purpose of Grameen Bank (Yunus Centre, 2022). With further probes by the Bangladesh government in 2022, the ongoing controversy surrounding Grameen Bank highlights the complexities of implementing social entrepreneurship initiatives.

Social entrepreneurship involves the use of business strategies and processes to mitigate societal problems and generate social impact that extends beyond economic value (Bacq & Janssen, 2011; Dees, 2007). Social entrepreneurship is practiced across various sectors, including education, healthcare, housing, and financial services (Morris et al., 2021). There are three main organizational models that can serve as examples of social entrepreneurship. These are (1) a social purpose venture, with a primary focus on social impact along with generating economic outcomes; (2) a non-profit enterprise, solely dedicated to a social mission without any financial expectations; and (3) hybrid models, that may prioritize social objectives but lack definitive organizational outcomes (Neck et al., 2009). At the organizational level, social entrepreneurship practices seek to address societal needs that have been overlooked or inadequately addressed by traditional institutions and government bodies (Saebi et al., 2019; Zahra et al., 2009). Organizations practicing social entrepreneurship straddle the divide between the private, public, and non-profit sectors, blurring the lines of traditional boundaries and stakeholder expectations of such organizations (Doherty et al., 2009).

Increasingly, organizations are expected to fulfill diverse roles beyond traditional business functions (Drucker, 2007), including advocating for human rights, addressing environmental concerns, and tackling global social challenges (Garavan & McGuire, 2010). Furthermore, organizations are tasked to foster ongoing learning and growth among their employees, promote ethical behavior, cultivate capable leaders who can drive strategic change, and communicate effectively with stakeholders to mobilize support (Fenwick, 2014; Garavan & McGuire, 2010). In most organizations, these expectations typically fall within the responsibilities of adult education and human resource development (HRD) professionals (Garavan & McGuire, 2010; Nadler, 1984; Sambrook, 2014).

HRD is any process intended to enhance an individual’s knowledge and abilities for his or her long-term growth, which may, without expectation, benefit the organization or, ultimately, humanity (McLean & McLean, 2001; Nadler, 1984). HRD has evolved with two main perspectives among practitioners: a functionalist approach concentrating on performance, and another centered on human learning and growth (Lee, 2014). Yet, as organizations continue to evolve with the emergence of new models, such as social entrepreneurship, HRD professionals must confront the task of supporting the contrarian forms of organizational structures (Wang, 2019).

We assert that the characterization of social entrepreneurship makes it an ideal focus for HRD. While Chalofsky (2019) emphasized the need for HRD to support organizations practicing social entrepreneurship in understanding the impact of their organizations on wider society and Wang (2012) has called for more research in this domain, responses to these suggestions have been notably muted. Callahan (2012) offered valuable insights into HRD’s role in supporting alternative organizational forms. Yet, there remains a gap in understanding exactly how HRD practices can support initiatives such as social entrepreneurship. We find this intriguing, given the strong synergy between the objectives of HRD and social entrepreneurship, both of which aspire to empower individuals, uplift communities, and foster societal progress. In the following section, we first discuss the complexities associated with characterizing social entrepreneurship that may explain the lack of attention by HRD. Afterward, we provide a perspective on how research and practice in HRD can add value to this multifaceted concept.