Social entrepreneurship (SE) has become a rapidly advancing domain of enquiry and holds a place in policy makers consideration around the globe. Opportunities have been regarded as critical in SE, but are often portrayed in abstract and unspecified ways. Research on this topic remains relatively scarce, theory building is not yet established and integrated, and the dearth of empirical studies further constrains theoretical development in SE. Researchers have thus called for more exploration and a comprehensive theoretical understanding of SE opportunities. The purpose of this study is to explore SE opportunities through empirical investigation and theoretical development. As an exploratory study, this study addresses two broad research questions: (1) What are SE opportunities? And (2) How do they emerge? To answer these questions, I draw on the broader entrepreneurship literature which provides two main alternative explanations: opportunity discovery (nexus theory) and opportunity creation (effectuation theory). While the discovery/creation debate is still ongoing, recent theoretical advancement has shown a possible path of forwarding entrepreneurial opportunity research, suggesting that research should incorporate structure and agency simultaneously in studying opportunities. Following this path, this study contributes to SE opportunity research by providing a comprehensive understanding of SE opportunities, it also helps address the discovery/creation debate in the context of SE. To make this contribution, this study first adopts critical realism as a research philosophy as well as methodology. Critical realism incorporates the effects of both structure and agency through its ontological assumptions of three domains of reality, while providing an explanatory framework to assess competing theories. Second, this study selects China as a context for empirical study. As a relation-oriented society, China provides a useful context for studying the causal relations between the social structure (guanxi) and SE opportunity. China s institutional context and fast growing social enterprise sector also provides a promising setting for exploratory research on SE opportunities. Based on critical realism, I used a three-step qualitative multi-case study to develop an explanatory framework in which guanxi and social capital theory provide theoretical explanations of the social structure and its causal powers, which lead to SE opportunity emergence in China. Data were collected from 45 interviews with Chinese social entrepreneurs, their employees and other key stakeholders in 36 organisations in Beijing, Hunan Province and Shanghai. My research findings show that SE opportunities develop in all of the three domains defined by critical realism. In the domain of empirical a world of human experience of social events a SE opportunity can be described as discovered, created, or as both discovered and created. In the domain of actual the social events under study a SE opportunity consists of three internal and necessary constituents: unjust social equilibrium (USE), social entrepreneurs beliefs (SEB), and social feasibility (SF). In the domain of real deeper structures, causal powers and mechanism that produce the social event the emergence of SE opportunities can be seen as the result of a resource acquisition and mobilisation mechanism whereby USE, SEB and SF are identified or formed through social entrepreneurs social capital embedded in guanxi. Building on these findings, this study concludes with a theoretical framework that offers a comprehensive explanation of SE opportunity emergence in China. This study is the first attempt to apply critical realism to the study of opportunities in the context of SE in China. It contributes to the SE and general entrepreneurship literature by developing a theoretical framework of SE opportunity emergence that provides an alternative explanation for the existence of discovery and creation opportunities, and by extending our theoretical understandings of some key concepts of SE. This research further provides an example of the use of qualitative methods to apply critical realism in SE and general entrepreneurship research, which contributes to the development of relatively rigorous research design and research methods in studying complex social events.

Despite the past decade’s increased adoption of scientific methodologies by startups, most still fail to scale into large companies. The paralyzing plethora of advice, theory and models recommended to startups is poorly matched by practical advice on the applicability and implications of actually following the recommendations. In this action-based research I, an IT consultant for twelve years and founder/co-founder of several startups, try out and evaluate the applicability of methodologies for applying scientific management principles to innovation in early-stage startups. In the first part of my research, I use an naive explorative hands-on approach which results in insights into the limited applicability of popular methodologies such as Growth Hacking and The Lean Startup. These limitations are especially pronounced for early-stage startups who are yet to launch a minimum viable product (MVP), as well as those that have trouble to decide which hypotheses are the riskiest. Most actionable insights during this part stemmed from the engagement in various thought-experiments and reflections, and not from external customer feedback. To remedy this, and to thoroughly evaluate the applicability of a pre-launch market assessment method, I engage in market opportunity discovery following the recommendations set forth by Outcome-Driven Innovation (ODI). This hands-on in-depth approach yielded seemingly high-quality actionable insights with direct implications for the product and marketing strategy of the studied early-stage startup. In the discussion part, I reflect over the applicability of the evaluated methodologies and argue that the main difference between applicable and non-applicable methodologies is whether they are manufacturing-based or needs-based. Finally, I reflect over possible implications and suggest that a startup community wide change of mindset from manufacturing-based methodologies such as The Lean Startup to needs-based methodologies such as Outcome-Driven Innovation will minimize the startup innovation-process variability and increase startup efficiency dramatically on a global scale.

Abstract The rapid development of digital technology and software in recent years has created great variety of totally new business opportunities. Software startups are commonly considered to be the fastest in exploiting the new opportunities and the most innovative in creating new products and services. At the same time, software startups are often small, immature enterprises with limited resources and inexperienced teams. The initial team plays a key role in the early stages of a software startup. This research focuses on the initial team from the perspective of human capital – the knowledge, experiences, skills, and other cognitive abilities. It studies the initial team empirically, utilizing the multi-case study and triangulation methods applying the human capital, resource-based view, capability, and the opportunity discovery and creation theories. The empirical data were gathered from thirteen software startups in Italy, Norway and Finland, and from a student experiment. From the analysis of this data, a generic structure of a software startup’s initial team was identified, consisting of three different roles, with each having a specific human capital profile. This team structure sought a balance between the team’s human capital and problems and challenges to be solved. The level of the initial human capital of the team and the means to strengthen it varied, and affected the progress of the work in the studied startups. Though the components of the team’s human capital were not rare and inimitable in terms of the resource-based view, building a balanced startup team created a unique and task-specific setup, which is a key capability of a software startup. The balanced startup team structure is proposed to be the generic human capital model of a software startup’s initial team. / Tiivistelmä Digitaalitekniikan ja ohjelmistojen nopea kehitys viime vuosina on synnyttänyt suuren joukon kokonaan uusia liiketoimintamahdollisuuksia. Ohjelmistostartup-yrityksiä pidetään yleisesti nopeimpina hyödyntämään uusia mahdollisuuksia ja erityisen innovatiivisina luomaan uusia tuotteita ja palveluita. Kuitenkin samalla, ohjelmistostartup-yritykset ovat usein pieniä, kehityksensä alussa olevia yrityksiä, joilla on pienet resurssit ja kokematon henkilökunta. Varhaisen vaiheen ohjelmistostartup-yrityksissä alkutiimin merkitys on keskeinen. Tässä tutkimuksessa tarkastellaan alkutiimiä inhimillisen pääoman, osaamisen, kokemuksen ja taitojen, näkökulmasta. Tutkimuksessa tarkastellaan alkutiimiä kokeellisesti, käyttäen monitapaustutkimuksen ja triangulaation menetelmiä ja soveltaen inhimillisen pääoman, resurssipohjaisen näkemyksen, kyvykkyyden ja liiketoimintamahdollisuuksien hyödyntämisen teorioita. Kokeellinen tutkimusaineisto on kerätty kolmestatoista yrityksestä Italiasta, Norjasta ja Suomesta ja yhdestä opiskelijoilla tehdystä kokeellisesta tutkimuksesta. Tutkimuksessa löydettiin alkutiimin yleinen malli. Mallissa on kolme roolia, kullakin oma inhimillisen pääoman profiili. Mallissa on tiimin inhimillisen pääoman ja ratkaistavien ongelmien tasapaino. Tiimien inhimillisen pääoman määrä ja sen kehitystavat vaihtelivat, ja vaikuttivat tutkittavien yritysten edistymiseen. Vaikka alkutiimien inhimillisen pääoman komponentit eivät olleet ainutkertaisia resurssipohjaisen näkemyksen kannalta, tasapainossa olevan alkutiimin rakentaminen synnytti ainutkertaisen, tehtävänmukaisen tiimirakenteen, jota voidaan pitää yrityksen keskeisenä kyvykkyytenä. Havaittu tiimirakenne esitetään yrityksen alkutiimin inhimillisen pääoman yleiseksi malliksi.