Resource dependence and the survival of government-created social enterprises

Local governments increasingly use social enterprises for public service delivery, but the sustainability of this approach is likely to be influenced by a range of resource dependencies. Drawing on the Resource Dependence Theory, we investigate the resources social enterprises must acquire and maintain for their survival among nearly 100 social enterprises created by English local governments to provide leisure services. Using survival analysis, we find that government-owned and more profitable social enterprises are less likely to be dissolved, as are those with a larger board of directors. We also find that board diversity is beneficial for enterprises with larger boards.