How does the development of the social enterprise sector affect entrepreneurial behavior? An empirical analysis

Abstract

Research on social entrepreneurship (SE) has increased exponentially during the past decade. Even though this social phenomenon has aroused the interest of researchers, many aspects have not yet been fully studied. In this study, the goal is to analyze how the factors that define the behavior of social entrepreneurs are affected by the perception that they have about the development of the social enterprise sector (SES development). We perform an empirical multivariable analysis using 2015 Global Entrepreneurship Monitor (GEM) data related to SE, with an international sample that contains information of 17,778 entrepreneurs, of which 6470 are social entrepreneurs. The empirical analysis is carried out applying binary response models, introducing interaction terms to analyze the moderating effect of SES development. Our results show that the entrepreneurs' perception of the SES development exerts a moderating effect over three different groups of factors: 1) factors related to self-perception about entrepreneurship (including values, perceptions, and entrepreneurial skills); 2) demographic factors (gender, age, and education level), and 3) context and entrepreneurial environment (including factors related to entrepreneurs' perception of societal values, entrepreneurship environment, and economic development). This moderating effect has very important implications, especially for policymakers. Our results show that SES development could amplify some effects, both positively and negatively. Therefore, the design and implementation of policies to support SE must consider the moderating role of this variable on the entrepreneurial behavior, because it could affect the effectiveness of such policies.