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Exploring How Institutions Influence Social and Commercial Entrepreneurship: An International Study
Abstract
The purpose of this chapter is to analyse the institutional factors that condition entrepreneurial activity, distinguishing between social and commercial entrepreneurship and using institutional theory as conceptual framework. We statistically test our hypotheses through linear regression models in a global setting using a sample of 43 countries and data from Global Entrepreneurship Monitor, Doing Business, and Worldwide Governance Indicators (2009). Compared with commercial entrepreneurship we find that social entrepreneurship is positively influenced by education level whereas the minimum capital requirements do not affect the social entrepreneurial process in contrast to commercial entrepreneurship. In addition, the results suggest that role models and fear of failure influence social entrepreneurship. This study contributes theoretically (advancing in the literature with an integrated model that relates institutions and entrepreneurial activity considering the relationship between social and commercial entrepreneurial activity) and practically (for the design of policies to foster both social and commercial entrepreneurship).
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