Principal Topic

Community-based enterprises (CBEs) are entrepreneurial initiatives which enhance the quality of life and economic development of a particular region or common interest group. Often they are held together by a mutual bond such as crafts, skills, geography, or underemployment. While CBEs may be found in diverse regions of the world, very little is known about how such groups operate from the perspectives of the field of entrepreneurship. The present study begins to explore the processes, origins, and operations of CBEs.

Method

Because so little is known about how CBEs originate or operate, a number of questions were developed as guidelines to pursue case study analyses of such enterprises. What factors contribute to the birth of these types of organizations? What structural characteristics do they possess and how do these change over time? What is the funding mechanism which provides the springboard for their start? What is the role of religious or government organizations at the onset of their operations? How do CBEs grow and evolve as private enterprises? These questions are investigated through case studies developed from interviews with representatives of CBEs. This exploratory study is thus an early attempt to identify commonalities among the organizations as well as the differentiating characteristics which make them uniquely suited to their particular environment.

Results and Implications

Initial analyses of case studies developed from interviews conducted in Chile during Phase I suggest that CBEs contribute to positive outcomes for families and communities. Employment opportunities, stable income, positive role models, enhanced personal initiatives, and reduced dependence on governmental financial assistance were found to benefit families in the first cases analyzed. Nascent entrepreneurship, profitability, business growth, and contributions to an area’s economic development were also associated with CBEs. Phase II interviews will be conducted with representatives of various community-based enterprises identified in the United States.

CONTACT: Barbara A. Kuhns, DePaul University, 1 E. Jackson Blvd., Ste. 7000, Chicago, IL 60604; (T) 312-362-8113; (F) 312-362-6973; bkuhns@wppost.depaul.edu