The Impact of Social Enterprises on Individual Wellbeing in South Korea: The Moderating Roles of Social Capital in Multilevel Analysis

Various studies have proposed social enterprise as a potential policy intervention and a policy alternative to deal with the complex problem of wellbeing enhancement. However, the relationship between social enterprise and wellbeing has not been fully expounded, particularly its impact on the local community. This study aims to empirically examine the relationship between social enterprise and the wellbeing of individuals in the local community, utilizing a multilevel framework. It further explores whether social capital, measured as trust, network, and participation, plays a moderating role in the relationship between local social enterprise and the wellbeing of individuals in the community. The results indicate that social enterprise has a positive effect on the wellbeing of individuals in the community, and that social capital, particularly network and participation rather than trust, plays a moderating role in the relationship between local social enterprise and individual wellbeing. The results help explain how social enterprise improves the wellbeing of community residents as a whole, suggesting practical implications for policymakers and practitioners from governments and social enterprises.