Are There Really Differences Between Social and Commercial Entrepreneurship in Developing Countries?: An Institutional Approach (Chapter 17)

Year: 2019
Published in: Handbook of Research on Smart Territories and Entrepreneurial Ecosystems for Social Innovation and Sustainable Growth
Cited as: Hidalgo, L. F., Rialp, J., & Urbano, D. (2020). Are There Really Differences Between Social and Commercial Entrepreneurship in Developing Countries?: An Institutional Approach. In Palma-Ruiz, J. M., Saiz-Álvarez, J., & Herrero-Crespo, Á. (Ed.), Handbook of Research on Smart Territories and Entrepreneurial Ecosystems for Social Innovation and Sustainable Growth (pp. 306-325). IGI Global. http://doi:10.4018/978-1-7998-2097-0.ch017

The objective of this chapter is to determine the probability of starting social or commercial entrepreneurship in developing countries using the institutional approach as the theoretical framework. The study tests the hypotheses through a binomial logistic regression based on a sample of 10,598 entrepreneurs obtained from the Global Entrepreneurship Monitor (GEM). The main findings demonstrate that a higher level of education (formal institution) and a positive perception of personal values (informal institution) increase the probability of being a social entrepreneur. Also, the study shows that the interaction between informal institutions causes changes in the likelihood of being a social or commercial entrepreneur. This research advances the discipline by providing new information on the institutional environmental factors that influence social entrepreneurial activity.