Revolution or Modernization? Social Enterprises and the German Welfare Arrangement

The paper investigates the role of social enterprises in the German welfare arrangement. It asks whether social enterprises are drivers of a paradigmatic shift, revolutionizing the welfare arrangement, or whether they play a more modest role, contributing to adaptation to changed societal demands. Two case studies of social enterprises are analyzed through the theoretical lens of neo-institutionalism. Results show that the German welfare arrangement is not revolutionized by social enterprises as the predominance of established non-profit organizations persists. Social enterprises integrate themselves into the existing system by drawing on public funding and providing services similar to those of established providers.