Institutions, social entrepreneurship, and individual economic well-being: an exploratory study

Purpose: This study aims to evaluate the influence of institutions on the probability of becoming a social entrepreneur and the effect of this choice on individual economic well-being. The authors also analyze the effects of gender (male versus female entrepreneurism) and type (traditional versus social entrepreneurism). Design/methodology/approach: Institutional economics framed the analysis, and hypotheses were tested using two-stage probit least squares models in a sample of 69,236 individuals from 57 countries during the 2010–2014 wave from the World Values Survey. Findings: The results showed that, for most variables, institutions significantly explained the probability of becoming a social entrepreneur. The analyses also indicated that social entrepreneurship is highly associated with individual economic well-being. Originality/value: This research brings insights into the discussion of the social and economic benefits of socially oriented entrepreneurs. Likewise, the modeling approach overcomes the interplay between entrepreneurship and economic outcomes, in which institutions become key factors.