The Effect of Economic Development and Political-Economic Institutions on the Probability of Starting Social Enterprises

• In Event: 2451 - Section on Organizations, Occupations, and Work Refereed Roundtables (1 hour)
  In Refereed Roundtable 60min: Table 15. Public and Non-Profit Organizations and Social Enterprise

Abstract

This study explores the impact of contextual factors that facilitate the likelihood of starting social enterprises. Based on the GEM 2009 dataset, the study investigates the effect of economic development, government effectiveness, and economic freedom on the probability of starting a social enterprise. Using the method of multilevel logistic regression analysis with more than 140000 cases in 41 countries, the study found a U-shaped relationship between economic development and probability of starting social enterprises. It found no support for economic freedom and government effectiveness theory, which was supported by the previous research. Besides theoretical contributions, especially related to Economic development, the research contributes to the existing research with a use of new contextual variable, Economic freedom.

Author

• Marta Mamyan, University of Nevada, Reno