Social Cooperative Model Choices in the Socially Unsustainable Environment: Evidence from Lithuania

Abstract

This research analyses the establishment and development of social cooperatives exposed to adverse factors in socially unsustainable contexts. The study focuses on a Lithuanian case study, with participants having limited experience creating a socially resilient enterprise ecosystem. The study employed a qualitative approach using case study and comparative analysis methods. The study found that Lithuania’s opportunities to leverage the benefits of social cooperatives are held back by a weak cooperative movement, a socially unsustainable environment, and limited understanding among professionals. The involvement of public policy actors in debates on legalising social business models is also limited. The study participants had mixed opinions about the social cooperative model for business development. Some favoured its cooperative principles and profit-sharing advantages, while others preferred non-profit organisations or smaller communities. The study also found a contradiction in the concepts of social business. The researchers suggest that the conditions for establishing social cooperatives could be more favourable in Lithuania, but social business founders require help understanding cooperative companies’ organisation and finances, for which the current public and private resources available are insufficient. Lithuania’s current policy of support and regulation for social business prioritises several social business models, which complicates the decision-making process for prospective social cooperative founders.