Chapter | Oxford Handbook of Entrepreneurship | 2006

The Social Dimensions of Entrepreneurship

by Amir Licht and Jordan I. Siegel

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; Social Entrepreneurship; Corporate Social Responsibility and Impact;

Citation:

Licht, Amir, and Jordan I. Siegel. "The Social Dimensions of Entrepreneurship." In Oxford Handbook of Entrepreneurship, edited by Mark Casson, Bernard Yeung, Anuradha Basu, and Nigel Wadeson. Oxford: Oxford University Press, 2006.