The Spirit of Social Entrepreneurship and Institutional Environment as Drives of Sustainable Economic Growth

Abstract

The impact of the COVID-19 pandemic is widely spread, not only multi-sectoral, but also across many fields, especially in socio-economic life and institutions of the communities. The purpose of this paper is to explain the importance of building a spirit of social entrepreneurship and the institutional environment to accelerate economic recovery and growth caused by the impact of the COVID-19 pandemic. The research method used a mixed methods research design. Qualitative and quantitative descriptive analysis was used through exploratory and explanatory designs. The main data source is primary data obtained through a survey of social entrepreneurship actors in various regions in Indonesia. The main contribution is to provide a conceptual model that integrates the spirit of social entrepreneurship (SSE) into new institutional economic theory (NIE). The results of the study concluded that the role of social entrepreneurship (SE) and the institutional environment has not been optimized to support economic growth. Hence, there is a need for a spirit and existing institutional environment quality to encourage sustainable economic growth. Without a strong spirit and encouragement from the quality of the institutional environment which has political authority, the SE will be difficult to become a formal and strong entrepreneurial and cultural economic movement.

The Impact of Social and Political Capital on the Sustainability of MSMEs in the Era of Economic and Digital Disruption

“…Economic growth is a condition where the people of a country or region experience an increase in income which can be caused by an increase in the production of goods and services. The following developments in production quantities are generally caused by increasingly advanced technology, efficient business innovations and escalation of consumer interest in certain trends [17]. Apart from that, another definition of economic growth is a financial transfiguration procedure that is identical to natural resources, the number of commodities and the financial condition of a country.…”

“…In this regard, one of the benefits that the government feels when economic growth occurs is that development and equitable distribution of community infrastructure can be implemented quickly because per capita income has soared. Apart from that, for MSMEs, economic growth is the first step to planning business expansion and sustainable resource development in the future [19].…”

The Potential of Informal Institutions in Promoting Green Enterpreneurship (Ge) and Sustainable Socio-Economic Development

“…For instance, the results stated that Green Enterpreneurship (GE) influences green product development, which subsequently affects marketing performance (Alamsyah et al, 2023). Several models have not explored the potential of institutional capacity concerning the symbiosis of GE with sustainable development, both theoretically and practically (Prasetyo et al, 2022a). Green Enterpreneurship (GE) is fundamentally a component of social entrepreneurship, driven by the objective of mitigating environmental impacts to attain sustainable goals (Neumann, 2022).…”

“…Green Enterpreneurship (GE) is fundamentally a component of social entrepreneurship, driven by the objective of mitigating environmental impacts to attain sustainable goals (Neumann, 2022). Meanwhile, the theoretical foundation of Sustainable Development Goals (SDGs) remains underdeveloped (Prasetyo et al, 2022a;Wang et al, 2023). and there is no standardized theory of sustainable development that encompasses all aspects.…”

“…The process of fostering Green Enterpreneurship (GE) and establishing new institutional resource-based environments are indispensable drivers of sustainable socio-economic development. The innovative capacity and awareness of the millennial generation are key Pages 1 -20 Prasetyo et al / Economics -Innovative andEconomics Research Journal, doi: 10.2478/eoik-2023-0061 2 factors in this endeavor (Nikolaou et al, 2018;Prasetyo et al, 2022a;Genoveva and Tanardi, 2022;Rudaku et al, 2023). Prior research has drawn attention to institutional gaps, particularly in supporting female entrepreneurs to mitigate gender disparities in Green Enterpreneurship (GE) (Prasetyo et al, 2023;Pindado et al, 2023).…”