Consumer response to social entrepreneurship: the case of the Big Issue in Scotland

The Big Issue is the most prominent example of social entrepreneurship in the UK. Initially started as a nonprofit organisation, it is now a limited company that provides homeless individuals with the opportunity to earn an income and donates its profits to a charity that addresses problems of homelessness. The paper explores how consumer response to the Big Issue is influenced by the fact that the magazine is sold by homeless people themselves. The findings suggest that consumers buy it both because they like the magazine and because they believe that they are helping the homeless, often paying more than the magazine cover price for the latter reason. The results also reveal that consumers see the direct involvement of homeless people in the exchange positively, recognising it as an empowering process.