The Social Dimensions of Entrepreneurship

Licht, Amir N.; Siegel, Jordan I.

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The Social Dimensions of Entrepreneurship

OXFORD HANDBOOK OF ENTREPRENEURSHIP, Mark Casson and Bernard Yeung, eds., Oxford University Press, 2006

43 Pages Posted: 26 Oct 2005

See all articles by Amir N. Licht

Amir N. Licht

Reichman University; European Corporate Governance Institute (ECGI)

Jordan I. Siegel

University of Michigan at Ann Arbor - Corporate Strategy and International Business

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.

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

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

Suggested Citation: Suggested Citation

Licht, Amir N. and Siegel, Jordan I., The Social Dimensions of Entrepreneurship. OXFORD HANDBOOK OF ENTREPRENEURSHIP, Mark Casson and Bernard Yeung, eds., Oxford University Press, 2006, Available at SSRN: https://ssrn.com/abstract=824844