Social Entrepreneurship Impact in Ten EU Countries with Supportive Regulations

Abstract

This research examines the impact of social entrepreneurship (SE) on sustainability and innovation by considering the determining factors of entrepreneurship as identified in the literature. The authors undertake an empirical analysis with structural equation modeling for ten European Union countries with supportive regulations related to SE: Belgium, Holland, Slovenia, Spain, Finland, Greece, Italy, Luxembourg, Portugal, and Romania. The data used is obtained primarily from the Global Entrepreneurship Monitor-Specific report on SE (GEM), Eurostat Database, and SDG Index database. The findings show that social and economic factors are positively related to SE. The impact of SE on sustainability and innovation is also found to be positive. SE becomes an important asset by creating economic benefits through innovation and sustainable welfare. This research contributes to the gap in current empirical research. The authors identify reasons for these findings and offer some practical insights to design policies, such as an adequate legal and fiscal framework, to promote social entrepreneurship.