Are some cultures more favourable for social entrepreneurship than others?

Irena Kedmenec,Sebastjan Strašek

doi:10.1080/1331677x.2017.1355251

Abstract

The goal of this paper is to examine whether certain national cultural dimensions facilitate or hamper social entrepreneurship. The paper offers a conceptualisation of the possible associations between Hofstede’s cultural dimensions and social entrepreneurial activity as defined by the Global Entrepreneurship Monitor, along with its empirical testing across more than 40 countries around the world. Based on correlation analysis that was controlled for the countries’ level of economic development, there appears to be a negative association between the national power distance level and social entrepreneurial activity. In addition, the rate of young social entrepreneurial ventures is associated with lower levels of masculinity. The cultural dimensions of individualism and uncertainty avoidance have no direct linear association with social entrepreneurial activities of any kind. In factor-driven economies, lower levels of masculinity appear to support the development of social entrepreneurship. On the other hand, in innovation-driven economies, social entrepreneurial ventures emerge more often in those cultures characterised by short-term orientation and indulgence.

Highlights

Social entrepreneurship is a fast-growing phenomenon and an emerging area of research within a variety of domains: business strategy, entrepreneurship, public sector management, community development, not-for-profit marketing, sociology, political science, economics and education (Short, Moss, & Lumpkin, 2009; Weerawardena & Sullivan Mort, 2006)
The data appear to support the negative relationship between the national level of power distance and social entrepreneurial activity, at least for the period under study and the countries examined
The rate of young social entrepreneurial ventures is associated with lower levels of masculinity

Summary

Introduction

Social entrepreneurship is a fast-growing phenomenon and an emerging area of research within a variety of domains: business strategy, entrepreneurship, public sector management, community development, not-for-profit marketing, sociology, political science, economics and education (Short, Moss, & Lumpkin, 2009; Weerawardena & Sullivan Mort, 2006). It is characterised by an absence of clear theoretical boundaries. Social entrepreneurship refers to the process of applying business expertise and market-based skills in the non-profit sector, such as when non-profits develop innovative approaches to earn income (Austin, Stevenson, & Wei-Skillern, 2006; Reis, 1999; Thompson, 2002). Third, when viewed as a process, social entrepreneurship involves the offering of services and products but can refer to the creation of new organisations

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