Modeling the influence of the formal institutional environment on the social entrepreneurship development in the regions of russia

Abstract

Social entrepreneurship contributes to society's sustainable development, focused on meeting people's needs, the practical solution of social problems, including in times of crises, and the creation of innovative socio-economic solutions. However, to develop this phenomenon, the relevant institutions' functioning is necessary from society and the state. Government initiatives directly impact social entrepreneurship development both from above-through bills and supporting institutions, and from below, promoting mass initiatives in society. This study aims to determine the formal institutional environment's influence on Russia's regions' social entrepreneurship development. It has been determined that socially-oriented activity is distributed unevenly in different Russian regions, which became the reason for analyzing the supportive institutional environment's influence on developing social entrepreneurship. In the course of identifying the patterns of development of social entrepreneurship in Russia's regions, hypotheses about the influence of GRP, the average level of wages in the region, the level of investment attractiveness, the presence of a regional program for the development of the joint venture, and the amount of financing in the social sphere were tested. A model was built in the conducted regression analysis showing that social entrepreneurship development in the region depends on economic development and support programs' availability. The general trends in the development of social entrepreneurship in Russian and international practice are revealed, particularly the influence of economic development and supporting institutions on social entrepreneurship development. Simultaneously, in the Russian regions for the development of social entrepreneurship, the availability of support measures is more important than the region's investment attractiveness, which indicates the need for regulation by the state.