Barriers and challenges can occur in different ways, for example in terms of capacity, leadership, planning, and product branding.

Capacity

Organisational capacity can pose challenges for the internationalisation of social businesses. In terms of staffing capacity, social enterprises are often unable to hire experts in the field of social entrepreneurship, let alone experts in international business, as financial resources are scarce.

Limited staffing capacity also affects production capacity. Social businesses may struggle to produce a certain about of products. Especially, when they are handmade. In terms of financial capacity, social enterprises are often unable to hire experts in the field of social entrepreneurship, let alone experts in international business.

Beside, social businesses may struggle to produce a certain amount of products. Especially, when their products are handmade. In many cases, products are manufactured by people with disabilities.

As social enterprises have limited resources, in many cases they have not enough resources to expand or go for internationalisation. So many social businesses are focused on local market with idea „Think globally, act locally“

Leadership

Operating a social enterprise internationally can also result in additional stress to the team members, but, particularly to the leader. Sometimes the founder / leader has to endure periods when he / she is not paid by the enterprise. This can also affect the staff because of the lack of financial motivation.

Planning and strategy

It is essential that an organisation plans how to internationalise its business before it takes actions. Despite that, many felt that entrepreneurial focus and entering international market was a result of opportunities, not planning or strategizing the advantages and disadvantages of such a step. In order to succeed one organisation noted that the internationalisation needs to be aligned within the core business of the organisation.

Products and Branding

Social enterprises face a series of barriers and challenges regarding branding that are not necessarily different from those other businesses are confronted with. For instance, it may take time for a new product to be accepted in the mainstream market, or the need to reach a very specific market. Beside this, branding requires high marketing investments, especially international branding that requires different brand messages in different countries.

A challenge which particularly applies for social enterprises in terms of branding, is the need to maintain their ethical and environmental stance.

Different legal frameworks

Particular attention needs to be paid to legal issues, as social enterprises do not have legal status in every country. This needs to be identified before entering overseas markets.  There can be legal challenges relating to Social Enterprises. Recognition and regulation of Social Enterprises is in its infancy in a number of countries.  Lack of knowledge and understanding of these legal issues before commencing a Social Enterprise in another country can cause time delays and bureaucratic challenges. It is, therefore, important to understand the legal frameworks of the country you are thinking of setting up in.