Hoogendoorn_2016_Prevalence and determinants of SEship in Macro Level.pdf

Hoogendoorn_2016_Prevalence and determinants of SEship in Macro Level.pdf

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The Prevalence and Determinants of Social Entrepreneurship at the Macro Level by Brigitte Hoogendoorn The present cross-national study aims to explore the factors that are associated with a coun- try’s share of social start-ups in the total number of start-ups and contributes to the emerging stream of literature that explores the contextual drivers of different types of entrepreneurship. Based on data from the Global Entrepreneurship Monitor (GEM) 2009, covering 49 countries, we test several theoretical perspectives, including the failure thesis/institutional void perspective, the interdependence theory/institutional support perspective, welfare state theory and supply- side theory. Multiple regression analyses are applied testing the influence of institutional factors and cultural values on the incidence of social entrepreneurial start-ups relative to other types of start-ups. Our results seem to support the institutional support perspective: the share of social start-ups in all start-ups seems to benefit from favorable institutional circumstances, in particu- lar public sector expenditure and regulatory quality. With respect to cultural values, our results suggest that a society’s level of self-expression values benefits start-up diversity in favor of a higher share of social start-ups. Introduction Social entrepreneurs are increasingly acknowledged for offering solutions to complex and persistent social problems across the globe (Kerlin 2009; Shaw and Carter 2007; Zahra et al. 2009). Despite this growing recognition, there is a surprising lack of understanding of the preva- lence and drivers of this type of entrepreneurial activity (Estrin, Mickiewicz, and Stephan 2013; Stephan, Uhlaner, and Stride, 2014), which holds at the micro level (individual) and at the macro level (country). The present paper aims to fill the latter gap. This gap at the macro level can be explained by conceptual ambiguity (Mair and Mart ± ı 2006; Short, Moss, and Lumpkin 2009; Zahra et al. 2009) and a lack of har- monized and internationally comparable data (Lepoutre et al. 2013; Short, Moss, and Lumpkin 2009). We aim to explore the drivers that turn peo- ple into social entrepreneurs, as opposed to reg- ular entrepreneurs, and increase the share of social start-ups in the total number of start-ups. Understanding which factors drive the diversity of a country’s entrepreneurial entry is increas- ingly relevant to policymakers. Although initia- tives for social and environmental change are traditionally undertaken in the public sector, governments have been decreasing their fund- ing in the face of free market ideology and increasing their reliance on self-organization. Initiatives such as the “Big Society” launched by British Prime Minister David Cameron in the UK and “The Social Business Initiative” launched by the European Commission are illustrative. How- ever, which factors tip the balance in favor of entrepreneurship with a primarily social goal remains underexplored. Therefore, we focus on
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