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Exploring How Institutions Influence Social and Commercial Entrepreneurship: An International Study

Exploring How Institutions Influence Social and Commercial Entrepreneurship: An International Study
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Author(s): Elisabeth Ferri (Unversitat Autònoma de Barcelona, Spain) and David Urbano (Unversitat Autònoma de Barcelona, Spain)
Copyright: 2015
Pages: 15
Source title: Handbook of Research on Global Competitive Advantage through Innovation and Entrepreneurship
Source Author(s)/Editor(s): Luís M. Carmo Farinha (Polytechnic Institute of Castelo Branco & NECE – Research Unit, Portugal), João J. M. Ferreira (University of Beira Interior & NECE – Research Unit, Portugal), Helen Lawton Smith (Birkbeck, University of London & Oxfordshire Economic Observatory, Oxford University, UK) and Sharmistha Bagchi-Sen (State University of New York – Buffalo, Buffalo, NY, USA)
DOI: 10.4018/978-1-4666-8348-8.ch026

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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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