Exploring How Institutions Influence Social and Commercial Entrepreneurship

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).

Entrepreneurial Orientation of Professional Graduates in Autonomous States: The Case of Jammu & Kashmir (India)

“…Further, these economies are known to offer high interest rates because of strict monetary policy, which prevents new firm owners from generating capital (Bandelj, 2016). All of these circumstances concoct an environment that induces failure of firms as they lap up, state subsidies meant to increase production (Burawoy, 1996) In a study of the formal and informal factors that promote entrepreneurship, Ferri and Urbano (2010) have asserted that the governments have a role to play in fostering the entrepreneurial dynamism of the economy. According to a model by Manimala (2008), the two categories of entrepreneurship promotion practices have been classified as the 'General' (Thompson, 1967) and 'Task' (Khandwalla, 1977), the former helping the development of the enterprising individuals and the latter facilitating their entry into the business fields.…”