# Bureaucracy limits the impact of social enterprises Research finds complex policies and resource shortages hinder social businesses. - **Source:** [Phys.org - latest science and technology news stories](https://brifing.si/source/8b0f98da-d179-4c93-871f-7ac460bf9c61) - **Published:** 2026-07-20 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/0f1d6333-3bab-4551-b12d-d497780381a9 ## Barriers facing social enterprises Durham University's research reveals factors preventing social enterprises from delivering lasting benefits to their regions. Complex policies, unclear guidance, and financial constraints top the list of these barriers. ## What is the social business model? Social enterprises aim to address societal or environmental challenges through commercial activities. They reinvest profits to support their mission. However, this model faces different challenges than traditional businesses. ## Bureaucratic complexity The research shows social enterprises lose effectiveness due to conflicting policies and excessive bureaucracy. Differing expectations from various institutions make it difficult for these businesses to maintain focus. ## Resource management issues One of the biggest challenges social enterprises face is inefficient resource use. In addition to limited funding, lack of human resources and expertise also reduces their performance. ## Impact of financial constraints Traditional investors' lack of interest in social enterprises hinders their growth. The research emphasizes the need to develop specialized funding models. ## Proposed solutions Experts recommend policy alignment, clear guidance, and specialized financing mechanisms to enhance the impact of social enterprises. These steps could help social businesses fully realize their potential. ## Sources covering this story - https://phys.org/news/2026-07-red-tape-conflicting-priorities-limit.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._