Exploring the Regional Determinants of the Emergence of Social Enterprises in South Korea: An Entrepreneurial Ecosystem Perspective

Abstract

South Korea has experienced a rapid increase in the emergence of social enterprises that aim to address various social problems. However, little is known about the conditions that can affect the emergence of social enterprises at the regional level. This study examined the regional factors that influence the establishment of social enterprises using a panel dataset of observations on 17 metropolitan cities and provinces in South Korea from 2012 to 2019. The appearance of social enterprises in regional entrepreneurial ecosystems was found to be associated with the market, government, networks, financial resources, and human capital. We also found that the determinants of their emergence within South Korea’s social enterprise ecosystem vary based on their level of development and purpose. Based on the results, we suggested several policy implications and suggestions.

Understanding Location and Density: A Spatial Analysis of Cuyahoga County Ohio’s Nonprofit Sector

“…Nonprofits respond to historical and social contexts (Woo & Jung, 2023), and research on nonprofit density has revealed differences in the capacity of communities to support nonprofits, as nonprofit density may respond to poverty and the racial composition of the neighborhood (Joassart-Marcelli & Wolch, 2003; McDonnell et al, 2020; Wo, 2018). Yet, neighborhood conditions may have ramifications for the financial health of organizations as well.…”

“…Studies of nonprofit density using small geographic units, such as U.S. census tracts or local Authorities in the United Kingdom, show density is positively related over time (McDonnell et al, 2020; Wo, 2018). While organizations enter markets by selecting locations where they may be successful in meeting their mission (Woo & Jung, 2023), locations differ dramatically with respect to organizational density, norms of behavior, governance strategies, reputation, and resource abundance (Lomi, 1995). Consequently, the location of the organization has implications for its viability, as well as their ability to develop relationships, and become embedded to obtain legitimacy and access resources (Greve, 2002; Swaminathan, 1996).…”

“…One-way nonprofits establish legitimacy is through their choice of location. Locating near their target population or consumers demonstrates a commitment to the mission, a desire to decrease barriers to access, and assurance the community acknowledges the value of their goals (Bielefeld et al, 1997; Joassart-Marcelli & Wolch, 2003; Woo & Jung, 2023).…”

A geographical analysis of social enterprises: the case of Ireland

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Entrepreneurial Ecosystem Mechanisms

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