Social Entrepreneurship Versus Intrapreneurship in the German Social Welfare State

Germany is a classic example of a conservative welfare state. The production of social services is characterized by a deeply rooted tradition of corporatist governance, in which the “market” has wielded only marginal influence. Since the late 1990s, these corporatist arrangements have been challenged by the growing pressure for marketization; at the same time, a new discourse on social entrepreneurship and innovation has gained importance. This article examines the empirical impact of the social entrepreneurship movement in two domains: old-age care and youth welfare. We discuss the potential role of social entrepreneurship in these fields and argue for a realistic view of the potential for new actors in established governance arrangements. Our observations lead us to conclude that social innovation has developed not primarily as the result of challenges from new actors but rather from intrapreneurship: social innovations originating from within the established organizational field.