Iza Gigauri

School of Business, Computing and Social Sciences, 

Saint Andrew The First-Called Georgian University, 

Tbilisi, Georgia

E-mail: i.gigauri@sangu.edu.ge 

ORCID 0000-0001-6394-6416

Effects of the pandemic crisis on social enterprise: A case study from Georgia

Ewa Bogacz-Wojtanowska

Faculty of Management and Social Communication,

Jagiellonian University, 

Krakow, Poland

E-mail: ewa.bogacz-wojtanowska@uj.edu.pl 

ORCID 0000-0002-4432-3560

Abstract. Social entrepreneurship is an important area of research when it comes to considering the role of business in society and how entrepreneurs solve social problems. The concept has spread not only in developing, but also in developed countries. The recent Covid-19 pandemic has demonstrated that crises can be addressed with entrepreneurial innovation and creativity. This paper attempts to outline a way for social enterprises to overcome the current pandemic crisis, as well as to emphasize the challenges and opportunities the crisis presents social entrepreneurs with. This paper discusses how social enterprises in Georgia have been affected and strategies that have been applied. In order to achieve the research goal, relevant literature has been analyzed and systematized. The qualitative research method has been applied to answer the study questions. The paper concludes with an interpretation of the results and highlights implications for theory and practice. This study finds that Georgian social enterprises are negatively affected by the pandemic crisis due to increased operational costs, interruption of business processes, sales decline, customer loss, and supply chain disruptions. Social enterprises responded to the challenges by changing strategies, re-allocating resources, diversifying funding sources, intensifying communication efforts, introducing new technologies, and moving online. However, government support is essential for Georgian social enterprises to survive and grow. Finally, directions for future research are also proposed.

Received: March, 2021

1st Revision: April, 2022

Accepted: June, 2022

DOI: 10.14254/2071-789X.2022/15-2/19

JEL Classification: L31, L26

Keywords: social entrepreneurship, social enterprise, entrepreneur, nonprofit, pandemic, crisis