The Social Dimensions of Entrepreneurship

Abstract:     
Schumpeter's canonical depiction of the entrepreneur as an agent of social and economic change implies that entrepreneurs are especially sensitive to the social environment. We use an organizing framework based on institutional economics, in combination with lessons from cross-cultural psychology, to consider the social dimensions of entrepreneurship. The level and modes of entrepreneurial activity are affected by the surrounding culture and by legal rules. Entrepreneurs may partially overcome institutional deficiencies by relying on social networks that facilitate reputational bonding as a means for resource-sharing.

Number of Pages in PDF File: 43

Keywords: Entrepreneurship, social institutions, culture, law, social networks, reputation

JEL Classification: L1, L2, M13, P1, Z1

Accepted Paper Series