Does Entrepreneurship Matter for Inclusive Growth? The Role of Social Progress Orientation

Abstract

Building upon institutional economics, we examine how social progress orientation (SPO) affects inclusive growth through innovative and opportunity entrepreneurship. Hypotheses about civic activism, voluntary spirit, and the inclusion of minorities as proxies of SPO that affect entrepreneurship directly and inclusive growth indirectly have been suggested. Using unbalanced panel data of 132 observations (63 countries) and the three-stage least-squares method (3SLS), we provide empirical evidence that these three measures of SPO significantly affect innovative and opportunity entrepreneurship. Interestingly, our endogenous measures of entrepreneurial activity have served to explain inclusive growth, which is observed through poverty reduction across countries. Public policies should focus on social values oriented to progress in order to stimulate valuable entrepreneurial activity and hence facilitate economic development that also embraces vulnerable communities.

Entrepreneurship and Intrapreneurship in Social, Sustainable, and Economic Development: Opportunities and Challenges for Future Research

“…Important efforts have been made regarding analyses on social outcomes such as poverty reduction [33], inequality [34], inclusive growth [2], and gender equality [35]. Although it is not as abundant as compared to the analysis of traditional economic growth, this literature confirms that entrepreneurs have a social sense, implying that their decisions transcend materialism and the money-making mindset.…”

“…Extant research has shown that if societies are oriented toward progress, then these societies provide a suitable environment for entrepreneurs, who in exchange, create social benefits [2,31]. Indeed, econometrically speaking, the existing loop (i.e., endogeneity) between entrepreneurship and development is overcome thanks to the presence of institutions that positively affect entrepreneurial activity in one way or another.…”

“…However, entrepreneurial activity is not only a reaction of this particular juncture. It has become a vehicle to solve problems beyond economic terms, reflecting the existence of institutions toward social progress [1,2].…”

Deliberasi untuk Demokrasi Pasca Pandemi Indonesia

“…Demokrasi deliberatif mengakselerasi pertumbuhan ekonomi inklusif, kualitas pengambilan keputusan, akuntabilitas, ikatan sosial, kepercayaan, dan pengetahuan warga (Aparicio et al, 2021). Deliberasi krusial bagi penyusunan dan implementasi kebijakan publik yang strategis.…”

Cultural Antecedents of Green Entrepreneurship in Saudi Arabia: An Institutional Approach

“…We are aware that a lack of data sources poses a challenge to overcome, particularly when attempting to conduct cross-country comparisons, due to the limited number of indicators and the differences in measurements across countries [107]. Further efforts are needed to create homogenous information concerning green entrepreneurship, as well as its antecedents and those consequences beyond economic terms [108]. Future research should improve the quality and scope of the indicators, for both dependent, as well as independent variables, which may increase reliability and the ability to analyze causal relationships in a cross-sectional setting [18].…”