Interrelationships amongst critical success factors and rural social enterprises’ performance in a developing country context

• Published in: Journal of rural studies 2023-05, Vol.100, p.102995, Article 102995
• Main Authors: Musinguzi, Peter, Baker, Derek, Villano, Renato A.
• Format: Article
• Language: English
• Subjects: Business planning; Critical success factors; Financial and training support; Rural development; Rural social enterprise; Social enterprise performance; Structural equation modelling; Uganda
• ISSN: 0743-0167; 1873-1392
• DOI: 10.1016/j.jrurstud.2023.03.003

Rural social enterprises (RSEs) are an emerging actor that applies market-based approaches to implement a social mission: steering social and economic development. They thus contribute to addressing intractable challenges such as poverty and inequality disproportionately faced in rural areas. However, there is limited empirical evidence of their performance particularly regarding critical success factors (CSFs) and their interdependencies in influencing RSE performance in developing countries’ rural contexts. Our study aims to contribute to closing this gap by examining the interrelationships between internal (e.g., business planning) and external (e.g., financial and training supports) critical success factors (CSFs), and the performance of RSEs. The study uses survey data from 521 rural Ugandan RSEs, which is analysed using structural equation modelling and importance performance map analysis. Results show business planning and training support as key influencing CSFs for improving RSE performance. These results offer guidance for improving RSE performance to Ugandan RSE practitioners, supporters and policymakers as well as those in related developing country rural context. The study also provides initial findings valuable to researchers interested in advancing RSE performance. •Rural Social enterprises (RSEs) have been identified as key development strategies.•RSEs are vital in developing countries that disproportionately face poverty and inequality.•Empirical evidence of RSEs’ performance is sparse mainly in developing countries.•We unravel critical success factors and their influence on RSE performance.•Business planning and training support are key to improving RSE performance.