Abstract
Although there is a high level of practitioner, policymaker, and scholar interest in social entrepreneurship, most research is based on case studies and success stories of successful social entrepreneurs in a single country. We develop a methodology to measure population-based social entrepreneurship activity (SEA) prevalence rates and test it in 49 countries. Our results provide insights into institutional and individual drivers of SEA. Using the Global Entrepreneurship Monitor (GEM) methodology of Total Entrepreneurial Activity (TEA), we find that countries with higher rates of traditional entrepreneurial activity also tend to have higher rates of social entrepreneurial activity. We develop a broad definition of social entrepreneurship and then explore types based on social mission, revenue model, and innovativeness.
This is a preview of subscription content, access via your institution.







Notes
Lessons from the U.K. data collection are nicely described in Levie et al. (2006).
Weights are based on age and gender structure for every country. In addition, other characteristics such as education and ethnicity are captured in the weights if appropriate. Most countries adopt a regional stratification to make sure that all regions are represented in the sample.
Given the focus of this paper on the measurement of social entrepreneurship, a more detailed description of the GEM NES data is beyond the scope of this paper. We refer to www.gemconsortium.org for more detailed description of the GEM NES on social entrepreneurship.
The 2009 GEM executive report (Bosma and Levie 2010) section of “A Global Comparison of Social Entrepreneurship” includes slightly different estimates due to the fact that some skip logics weren’t followed in the data used in the original report. The present version is based on a full cleaning of the data.
References
Aidis, R., Estrin, S., & Mickiewicz, T. (2008). Institutions and entrepreneurship development in Russia: A comparative perspective. Journal of Business Venturing, 23, 656–672.
Alter, K. (2007). A social enterprise typology, Virtue Ventures. Retrieved January 15, 2010, from http://virtueventures.com.
Alvord, S. H., Brown, L. D., & Letts, C. W. (2004). Social entrepreneurship and societal transformation. The Journal of Applied Behavioral Science, 40(3), 260–282.
Anheier, H. (2005). The nonprofit sector: Approaches, management, policy. London: Routledge.
Ashoka. (2011). Accessed March 28, 2011, from http://www.ashoka.org/.
Austin, J., Stevenson, H., & Wei-Skillern, J. (2006). Social and commercial entrepreneurship: Same, different, or both? Entrepreneurship Theory and Practice, 30(1), 1–22.
Borins, S. (2000). Loose cannons and rule breakers, or enterprising leaders? Some evidence about innovative public managers. Public Administration Review, 60(6), 498–507.
Boschee, J., & McClurg, J. (2003). Toward a better understanding of social entrepreneurship: Some important distinctions (pp. 1−6). Minnesota: Institute for Social Entrepreneurs.
Bosma, N. S., & Levie, J. (2010). Global Entrepreneurship Monitor 2009, Executive Report. Babson Park, MA: Babson College, Universidad del Desarollo, Háskólinn Reykjavík University and Global Entrepreneurship Research Association.
Bowen, H. P., & DeClercq, D. (2008). Institutional context and the allocation of entrepreneurial effort. Journal of International Business Studies, 39(4), 747.
Brock, D. D. (2008). Social entrepreneurship teaching handbook. Arlington, VA: Ashoka’s Global Academy for Social Entrepreneurship.
Brooks, A. C. (2009). Social entrepreneurship: A modern approach to social value creation. Upper Saddle River, NJ: Pearson.
Certo, S. T., & Miller, T. (2008). Social entrepreneurship: Key issues and concepts. Business Horizons, 51(4), 267–271.
Chell, E., Nicolopoulou, K., & Karataş-Özkan, M. (2010). Social entrepreneurship and enterprise: International and innovation perspectives. Entrepreneurship & Regional Development, 22(6), 485–493.
Cohen, B., & Winn, M. I. (2007). Market imperfections, opportunity and sustainable entrepreneurship. Journal of Business Venturing, 22(1), 29–49.
Dacin, P. A., Dacin, M. T., & Matear, M. (2010). Social entrepreneurship: Why we don’t need a new theory and how we move forward from here. Academy of Management Perspectives, 24(3), 37–57.
Dees, J. G. (1998a). Enterprising nonprofits. Harvard Business Review, 76, 55–67.
Dees, J. G. (1998b). The meaning of “social entrepreneurship”. Draft Report for the Kauffman Center for Entrepreneurial Leadership. Stanford: Stanford University.
Defourny, J., & Nyssens, M. (2008). Social enterprise in Europe: Recent trends and developments. Social Enterprise Journal, 4(3), 202.
Dorado, S. (2006). Social entrepreneurial ventures: Different values so different process of creation, no? Journal of Developmental Entrepreneurship, 11(4), 319–343.
Emerson, J., & Twersky, F. (1996). New social entrepreneurs: The success, challenge, and lessons of non-profit enterprise creation. San Francisco: Roberts Foundation.
Hall, J. K., Daneke, G. A., & Lenox, M. J. (2010). Sustainable development and entrepreneurship: Past contributions and future directions. Journal of Business Venturing, 25(5), 439–448.
Hall, P. A., & Soskice, D. (2001). Varieties of capitalism the institutional foundations of comparative advantage. Oxford: Oxford University Press.
Hancké, B. (Ed.). (2009). Debating varieties of capitalism. A reader. Oxford: Oxford University Press.
Harding, R., & Cowling, M. (2004). The GEM UK Social Entrepreneurship Monitor. London, UK: Barclays Bank.
Hemingway, C. A. (2005). Personal values as a catalyst for corporate social entrepreneurship. Journal of Business Ethics, 60(3), 233–249.
Inglehart, R. (1997). Modernization and post modernization, cultural, economic and political change in 43 countries. Princeton, NJ: Princeton University Press.
Inglehart, R. (2000). Globalization and postmodern values. Washington Quarterly, 23(1), 215–228.
Inglehart, R., & Welzel, C. (2005). Exploring the unknown: Predicting the responses of publics not yet surveyed. International Review of Sociology, 15(1), 173–204.
Jackson, G., & Deeg, R. (2008). Comparing capitalisms: Understanding institutional diversity and its implications for international business. Journal of International Business Studies, 39, 540–561.
Kerlin, J. A. (Ed.). (2009). Social enterprise: A global comparison. Hanover, NH: Tufts University Press.
Kerlin, J. A. (2010). A comparative analysis of the global emergence of social enterprise. Voluntas, 21(2), 162.
Koellinger, P. D., & Thurik, A. R. (2012). Entrepreneurship and the business cycle. Review of Economics and Statistics, forthcoming.
Kwon, S., & Arenius, P. (2010). Nations of entrepreneurs: A social capital perspective. Journal of Business Venturing, 25(3), 315–330.
La Porta, R., Lopez-de-Silanes, F., Shleifer, A., & Vishny, R. (1998). Law and finance. Journal of Political Economy, 106, 1113–1155.
Levie, J., & Autio, E. (2008). A theoretical grounding and test of the GEM model. Small Business Economics, 31(3), 235–263.
Levie, J., & Hart, M. (2011). Business and social entrepreneurs in the UK: Gender, context and commitment. International Journal of Gender and Entrepreneurship, 3(3), 200–217.
Levie, J., Brooksbank, D., Jones-Evans, D., Harding, R., & Hart, M. (2006). Measuring social entrepreneurship: Lessons from three years of experimentation by the UK Global Entrepreneurship Monitor team. Babson College Entrepreneurship Research Conference, Indiana University, Bloomington.
Light, P. C. (2006). Reshaping social entrepreneurship. Stanford Social Innovation Review, 4, 47–51.
Mair, J. (2010). Social entrepreneurship: Taking stock and looking ahead. In A. Fayolle & H. Matlay (Eds.), Handbook of research on social entrepreneurship: 16–33. Cheltenham: Edward Elgar.
Mair, J., & Martí, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of World Business, 41(1), 36–44.
Mair, J., & Schoen, O. (2007). Successful social entrepreneurial business models in the context of developing economies: An exploratory study. International Journal of Emerging Markets, 2(1), 54–68.
Marcus, A., & Fremeth, A. (2009). Green management matters regardless. Academy of Management Perspectives, 23(3), 17–26.
Massetti, B. L. (2008). The social entrepreneurship matrix as a “tipping point” for economic change. Emergence: Complexity and Organization, 10(3), 1–8.
McMullen, J., Bagby, D., & Palich, L. (2008). Economic freedom and the motivation to engage in entrepreneurial action. Entrepreneurship Theory and Practice, 32(5), 875–895.
Nicholls, A. (2010). The legitimacy of social entrepreneurship: Reflexive isomorphism in a pre-paradigmatic field. Entrepreneurship: Theory & Practice, 34(4), 611–633.
Nissan, E., Castaño, M.-S., & Carrasco, I. (2010). Drivers of non-profit activity: a cross-country analysis. Small Business Economics, 1–18.
Peredo, A. M., & Chrisman, J. J. (2006). Toward a theory of community-based enterprise. Academy of Management Review, 31(2), 309–328.
Peredo, A. M., & McLean, M. (2006). Social entrepreneurship: A critical review of the concept. Journal of World Business, 41(1), 56–65.
Prabhu, G. N. (1999). Social entrepreneurial leadership. Career Development International, 4(3), 140–145.
Reynolds, P., Bosma, N., Autio, E., Hunt, S., De Bono, N., Servaias, I., et al. (2005). Global Entrepreneurship Monitor: Data collection design and implementation 1998–2003. Small Business Economics, 24, 205–231.
Robinson, J. (2006). Navigating social and institutional barriers to markets: How social entrepreneurs identify and evaluate opportunities. In J. Mair, J. Robinson, & K. Hockerts (Eds.), Social entrepreneurship. Basingstoke: Palgrave Macmillan.
Salamon, L. M., Anheier, H. K., Toepler, S., List, R., & Sokolowski, S. W. (Eds.). (1999). Global Civil Society: Dimensions of the Nonprofit Sector (vol. 2). Bloomfield, CT: Kumarian Press.
Salamon, L. M., Wojciech Sokolowski, S., & Associates. (2004). Global Civil Society: Dimensions of the nonprofit sector. Bloomfield, CT: Kumarian Press.
Sawhill, J. C., & Williamson, D. (2001). Mission impossible? Measuring success in nonprofit organizations. Nonprofit Management & Leadership, 11(3), 371–386.
Schofer, E., & Fourcade-Gorinchas, M. (2001). The structural contexts of civic engagement: Voluntary association membership in comparative perspective. American Sociological Review, 66, 806–828.
Schwab. (2011). Accessed March 28, 2011, from http://www.schwabfound.org/sf/index.htm.
Schwartz, S. H., & Sagiv, L. (2000). Value consensus and importance: A cross-national study. Journal of Cross-Cultural Psychology, 31, 465–497.
Seelos, C., & Mair, J. (2005). Social entrepreneurship: Creating new business models to serve the poor. Business Horizons, 48(3), 241–246.
Seelos, C., & Mair, J. (2007). Profitable business models and market creation in the context of deep poverty: A strategic view. Academy of Management Perspectives, 21(4), 49–63.
Sharir, M., & Lerner, M. (2006). Gauging the success of social ventures initiated by individual social entrepreneurs. Journal of World Business, 41(1), 6–20.
Shorrock, A. (2008). Opening address. Presented at the United Nations University-WIDER Conference on Entrepreneurship and Economic Development, Helsinki, Finland.
Short, J. C., Moss, T. W., & Lumpkin, G. T. (2009). Research in social entrepreneurship: Past contributions and future opportunities. Strategic Entrepreneurship Journal, 3(2), 161–194.
Smith, B. R., & Stevens, C. E. (2010). Different types of social entrepreneurship: The role of geography and embeddedness on the measurement and scaling of social value. Entrepreneurship & Regional Development, 22(6), 575–598.
Stephan, U., & Uhlaner, L. (2010). Performance-based vs socially supportive culture: A cross-national study of descriptive norms and entrepreneurship. Journal of International Business Studies, 41, 1347–1364.
Sullivan Mort, G., Weerawardena, J., & Carnegie, K. (2003). Social entrepreneurship: Towards conceptualisation. International Journal of Nonprofit and Voluntary Sector Marketing, 8(1), 76–88.
Taleb, N. N. (2007). The Black Swan: The impact of the highly improbable. New York: Random House.
Thompson, J. L. (2002). The world of the social entrepreneur. International Journal of Public Sector Management, 15(5), 412–431.
Thompson, J., & Doherty, B. (2006). The diverse world of social enterprise. A collection of social enterprise stories. International Journal of Social Economics, 33(5/6), 361–375.
Tracey, P., & Jarvis, O. (2007). Toward a theory of social venture franchising. Entrepreneurship: Theory & Practice, 31(5), 667–685.
Trexler, J. (2008). Social entrepreneurship as an algorithm: Is social enterprise sustainable? Emergence: Complexity and Organization, 3(10), 65–85.
Van Slyke, D. M., & Newman, H. K. (2006). Venture philanthropy and social entrepreneurship in community redevelopment. Nonprofit Management & Leadership, 16(3), 345–368.
Wallace, S. L. (1999). Social entrepreneurship: The role of social purpose enterprises in facilitating community economic development. Journal of Developmental Entrepreneurship, 4, 153–174.
Weerawardena, J., & Mort, G. S. (2006). Investigating social entrepreneurship: A multidimensional model. Journal of World Business, 41(1), 21–35.
Weimer, J., & Pape, J. C. (1999). A taxonomy of systems of corporate governance. Corporate Governance: An International Review, (7), 152–166.
Whitley, R. (1992). European business systems: Firms and markets in their national contexts. London: Sage Publications.
Whitley, R. (1998). Internationalization and varieties of capitalism: The limited effects of cross-national coordination of economic activities on the nature of business systems. Review of International Political Economy, 5, 445–481.
Woolridge, A. (2009). Global heroes: A special report on entrepreneurship. The Economist, 14, 1–19.
Zahra, S. A., Gedajlovic, E., Neubaum, D. O., & Shulman, J. M. (2009). A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of Business Venturing, 24(5), 519–532.
Acknowledgments
We thank the participants of the 6th Annual Satter Conference on Social Entrepreneurship for their helpful comments on earlier versions of this paper. We are also very grateful to Jill Kickul and two anonymous reviewers for their helpful comments to develop the paper. We thank GERA and the entire GEM community for their support and dedication in collecting and processing the data. Portions of this article appear, with permission, in the 2011 Global Entrepreneurship Monitor Social Entrepreneurship Report.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Lepoutre, J., Justo, R., Terjesen, S. et al. Designing a global standardized methodology for measuring social entrepreneurship activity: the Global Entrepreneurship Monitor social entrepreneurship study. Small Bus Econ 40, 693–714 (2013). https://doi.org/10.1007/s11187-011-9398-4
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11187-011-9398-4
Keywords
- Social entrepreneurship activity
- GEM
- Cross-country
- Social entrepreneurship
- Global entrepreneurship monitor
JEL Classifications
- L26
- L30
- L31
- NGOs
- N30