Social entrepreneurship and institutional environment in an emerging economy

Abstract

Social entrepreneurship in India has progressed significantly over the last decade. Social entrepreneurs – those who bring an entrepreneurial approach to solving social problems – are a growing breed in India. There is a lack of studies related to social entrepreneurship in literature. Therefore, this study aims to investigate the association between the institutional environment and social entrepreneurial self-efficacy. Based on the existing literature and theories, we have first proposed a model, and then empirically tested it using the structural equation modelling technique. Data was collected using a structured questionnaire from a sample of 284 entrepreneurial students of Rajasthan based on quota sampling. Analysis resulted that regulatory, normative and cognitive environment positively influence the social entrepreneurial self-efficacy. Results suggested that financial assistance, social legitimacy and acknowledgement are the most important factors necessary to enhance the growth of social entrepreneurship in India. Training is vital to create a pool of social entrepreneurs.