ABSTRACT
The Brazilian Social Incubator model is also community-centred and adopts spin-out methodologies from the private sector to bring innovation into favelas, in partnership with local actors, the state and a mix of academics and students. These challenge the notion that high-growth enterprises must inevitably be stripped of their social base in order to survive in a competitive commercial environment. The market is regulated by the state in a way that shields some sectors from internal and external competition, blocks entrants or creates incentives for new markets to grow. The state and the market have the resources and the authority to impose such discipline, but self-assembled financial circuits that recycle wealth within and between social enterprise networks can challenge dominant financial formations and create more appropriate local models. Technical assistance and capacity building are related to skills and knowledge, in which finance is seen as a way of extracting social value and not just sourcing different pots of money.
