Buddhist Entrepreneurs, Charitable Behaviors, and Social Entrepreneurship: Evidence from China

Small Business Economics 2021

62 Pages Posted: 1 Dec 2021

See all articles by Zuhui Xu

Zuhui Xu

Nanjing University of Finance and Economics

Zhiyang Liu

Shanghai University of Finance and Economics - College of Business

Jie Wu

Technovation; University of Aberdeen

Date Written: September 25, 2021

Abstract

To address the lacuna of how informal institutions like Buddhism impact social entrepreneurship in different regions within a nation, this research draws on the social entrepreneurship literature and the regional Buddhist research to propose a mediating framework where the percentage of Buddhist entrepreneurs in a region is positively associated both with the level of prosocial behaviors such as charity, due to the values of Buddhism, and with the probability of establishing businesses in a less-developed region. It further proposes that charitable behaviors mediate the relationship between the percentage of Buddhist entrepreneurs in a region and establishing businesses in less-developed regions. This mediating effect is attributed to the mechanism that charitable behaviors absorb the limited resources of entrepreneurs, reducing their resources for establishing businesses in less-developed regions. We test these hypotheses on nationwide surveys of founders of private enterprises and find support for this mediating view. Broad implications for theoretical and empirical research are discussed.

Keywords: Buddhism, Informal institution, Social entrepreneurship, Prosocial behaviors, China

Suggested Citation

Xu, Zuhui and Liu, Zhiyang and Wu, Jie and Wu, Jie, Buddhist Entrepreneurs, Charitable Behaviors, and Social Entrepreneurship: Evidence from China (September 25, 2021). Small Business Economics 2021, Available at SSRN: https://ssrn.com/abstract=3930625 or http://dx.doi.org/10.2139/ssrn.3930625

Zuhui Xu

Nanjing University of Finance and Economics ( email )

Nanjing
China

Zhiyang Liu

Shanghai University of Finance and Economics - College of Business

777 Guoding Road
Shanghai, 200433
China

Jie Wu (Contact Author)

Technovation ( email )

United Kingdom

University of Aberdeen ( email )

United Kingdom

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