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Solving ‘Social Market Failures’ with Social Enterprises? Grameen Shakti (Village Energy) in Bangladesh

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  • Michelle T. Hackett

Abstract

Addressing a gap in the social entrepreneurship literature, this paper explores the combined economic and socio-cultural and political difficulties inherent in addressing ‘social market failures’ by social enterprises in developing countries. Statistical analysis, interviews and observations of Grameen Shakti (Village Energy) are used to explore its approach to addressing energy market failures in rural Bangladesh. The paper finds that while Grameen Shakti is exceeding expectations in rural energy technology sales, it has had difficulties reaching the poorest for both financial and socio-cultural reasons. Political reflections, drawing from the broader ‘development literature’, suggest, further, that product-focused social enterprises are generally not well equipped to deal with the complex socio-political issues underlying energy poverty.

Suggested Citation

  • Michelle T. Hackett, 2016. "Solving ‘Social Market Failures’ with Social Enterprises? Grameen Shakti (Village Energy) in Bangladesh," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 7(3), pages 312-341, September.
    • Handle: RePEc:taf:jsocen:v:7:y:2016:i:3:p:312-341
    DOI: 10.1080/19420676.2016.1188324
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    References listed on IDEAS

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    1. World Bank, 2010. "Improved Cookstoves and Better Health in Bangladesh," World Bank Publications - Reports 27594, The World Bank Group.
    2. Sriram, M S, 2011. "Profit or Purpose: The Dilemma of Social Enterprises," IIMA Working Papers WP2011-08-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
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    Cited by:

    1. Praveen Kumar & Nishant Tiwary, 2020. "Role of Social Enterprises in Addressing Energy Poverty: Making the Case for Refined Understanding through Theory of Co-Production of Knowledge and Theory of Social Capital," Sustainability, MDPI, vol. 12(20), pages 1-13, October.

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