Financial Sustainability Strategies for Social Enterprises with an Urban Regeneration Mission: The Case of MOLIT Preliminary Social Enterprises Amid Declining Public Funding

• Published in: 한국비교정부학보, 29(2) pp. 49 - 84
• Main Author: 두민수
• Format: Journal Article
• Language: English
• Published: 한국비교정부학회 01.06.2025
• Subjects: 행정학
• ISSN: 1598-964X; 2713-5357
• DOI: 10.18397/kcgr.2025.29.2.49

(Purpose) This study investigates how the financial sustainability strategies of Korean social enterprises with a mission of urban regeneration—in focus of the Ministry of Land, Infrastructure and Transport (MOLIT)-certified preliminary social enterprises. The focus is on their strategies of balancing the dual objectives of social value creation and profit generation in the face of declining public funding. (Methodology) A qualitative case study approach was employed, analyzing three Korean enterprises—TheMong, WingWing, and Hope Nest Cooperative. The selected enterprises successfully explored strategies for business sustainability despite reductions of the governmental funding which they were once benefited. Data were collected through in-depth interviews, the internal documents of the companies, and official policy reports from the relevant public organizations; they were analyzed in six key dimensions: leadership, social networks, governmental support, sustainable business models, organizational capacity, and social value creation. (Findings) Initial public support—particularly in terms of financial and human resources—was crucial in enabling the experimentation with diverse business models, which in turn enhanced the organizations’ resilience and income diversification post-subsidy. The presence of robust community networks and the retention of core human resources further contributed to maintaining their social missions while progressively integrating market-oriented strategies. (Discussion and Conclusion) By illustrating adaptive strategies in response to the reduction of public funding, this study contributes to the broader understanding of sustainability of the social enterprises in a field of urban regeneration. The findings propose that business strategies such as selective utilization of the public-sector resources, coupled with cooperative relationships with the community and autonomous business development, can foster long-term, self-sustaining growth—even amid the retrenchment of public sector support. KCI Citation Count: 0