Top

The Annals of Regional Science

Published in:

24-08-2022 | Special Issue Paper

Cities and social entrepreneurship

Authors: Benoît Desmarchelier, Faridah Djellal, Faïz Gallouj

Published in: The Annals of Regional Science | Issue 3/2023

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

Social entrepreneurship research remains largely conceptual and qualitative, which makes the comparisons with profit-seeking entrepreneurship difficult. This paper is an attempt to fill in this empirical divide. As such, we perform a statistical study of the characteristics of the social entrepreneurial city. Using a nationwide dataset on social venturing at the city level in France, and given the scarcity of labeled social ventures in the country, we define a social entrepreneurial city as one that count at least one of such firms. Our statistical analysis reveals that the social entrepreneurial city shares many common points with the entrepreneurial city: it is a large city, and with a diversified economy. There are also some major differences, as we find that social entrepreneurship emerges in places lacking of creative arts and entertainment options, and where the activity rate is low.

previous article Self-employment career patterns in the Netherlands: exploring individual and regional differences

next article Does intermunicipal cooperation favor higher firm creation? French evidence from a natural experiment

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

inform now

Interestingly, in an extensive literature review, Sternberg (2021) identifies a similar bias in favor of personal-related explanations in for-profit entrepreneurship research.

ESUS stands for Entreprise Solidaire d’Utilité Sociale (Solidarity enterprise for social utility).

https://www.economie.gouv.fr/entreprises/agrement-entreprise-solidaire-utilite-sociale-ess.

http://www.esspace.fr/annuaire-entreprises-economie-sociale-et-solidaire-ess-france-eyes-atonis-cncress-insee.html.

The total list of French cities and towns can be found at: https://www.insee.fr/fr/information/2028028.

https://www.insee.fr/fr/metadonnees/nafr2/sousClasse/94.99Z?champRecherche=false.

https://www.cncres.fr/media/client/gridfichier/ressource5/etudeentreprisesesus1801bdi_vf.pdf.

Raw data can be found at: https://statistiques-locales.insee.fr/#bbox=-1046993,6661347,2586108,1619645&c=indicator&f=000&i=rp_ageact_15_64.tx_act&s=2016&view=map1.

Population estimates in 2017 can be found at: https://www.insee.fr/fr/statistiques/4265429?sommaire=4265511.

Total numbers of business creations can be found at: https://www.insee.fr/fr/statistiques/2021271.

Raw data are available at: https://www.insee.fr/fr/statistiques/2517292.

Raw data can be found at: https://www.insee.fr/fr/statistiques/2517292.

Employment numbers are estimated using the same procedure as for \({Top5Empl}_{i}\).

Data can be found at: https://statistiques-locales.insee.fr/#bbox=1046993,6661347,2586108,1619645&c=indicator&f=000&i=rp_ageact_15_64.tx_act&s=2016&view=map1.

Data can be found at: https://statistiques-locales.insee.fr/#bbox=-1046993,6661347,2586108,1619645&c=indicator&f=000&i=rp_ageact_15_64.tx_act&s=2016&view=map1.

Data source: https://www.insee.fr/fr/statistiques/4291712.

Data source: https://statistiques-locales.insee.fr/?view=map1&indics=rp.pt_fammonop&serie=2016&lang=fr.

We include this variable in the demand-side because empirical data shows that single parent families have a higher probability to fall into poverty (Maldonado and Nieuwenhuis 2015).

The datasets have been merged using the “codes communes”—i.e. codes used by INSEE to identify all populated areas. These codes do not match with the postal codes. Also, we aggregated data for Paris, Lyon and Marseilles. Indeed, some data for these cities were provided at the “arrondissement” (i.e. district) level.

Source: https://www.insee.fr/en/metadonnees/definition/c1501.

Acs Z, Bosma N, Sternberg R (2011) Entrepreneurship in world cities. In: Minniti M (ed) The dynamics of entrepreneurship, evidence from global entrepreneurship monitor data, Chapter 6. Oxford University Press, Oxford, pp 125–151CrossRef

Andersson M, Larsson JP (2014) Local entrepreneurship clusters in cities. J Econ Geogr 16(1):39–66CrossRef

Armington C, Acs Z (2002) The determinants of regional variation in new firm formation. Reg Stud 36(1):33–45CrossRef

Balland PA, Jara-Figueroa C, Petralia SG, Steijn MPA, Rigby DL, Hidalgo CA (2020) Complex economic activities concentrate in large cities. Nat Hum Behav. https://doi.org/10.1038/s41562-019-0803-3CrossRef

Barendsen L, Gardner H (2004) Is the social entrepreneur a new type of leader? Lead Lead 2004(34):43–50CrossRef

Baumol WJ (2004) On entrepreneurship; growth and rent-seeking: Henry George updated. Am Econ 48(1):9–16

Bettencourt LMA, Lobo J, Strumsky D, West GB (2010) Using scaling and its deviations: revealing the structure of wealth, innovation and crime across cities. PLoS ONE 5(11):1–9CrossRef

Bosma N, Sternberg R (2014) Entrepreneurship as an urban event? Empirical evidence from European Cities. Reg Stud 48(6):1016–1033CrossRef

Bosma NS, Schøtt T, Terjesen SA, Kew P (2016) Global entrepreneurship monitor 2015 to 2016: special report on social entrepreneurship. Global Entrepreneurship Research Association, London

Brown R, Mason C (2017) Looking inside the spiky bits: a critical review and conceptualization of entrepreneurial ecosystems. Small Bus Econ 49:11–30CrossRef

Dacin PA, Dacin MT, Matear M (2010) Social entrepreneurship: why we don’t need a new theory and how we move forward from here. Acad Manag Perspect 24(3):36–56

Dacin TD, Dacin PA, Tracey P (2011) Social entrepreneurship: a critique and future directions. Organ Sci 22(5):1203–1213CrossRef

Desmarchelier B, Djellal F, Gallouj F (2020a) Mapping social innovation networks: knowledge intensive social services as systems builders. Technol Forecast Soc Change 157:120068. https://doi.org/10.1016/j.techfore.2020.120068CrossRef

Desmarchelier B, Djellal F, Gallouj F (2020b) Towards a servitization of innovation networks: a mapping. Public Manag Rev 22(9):1368–1397CrossRef

Eurostat, (2021) Applying the degree of urbanisation. A methodological manual to define cities, towns and rural areas for international comparisons. Eurostat, Luxembourg

Falck O, Fritsch M, Heblich S (2011) The phantom of the opera: cultural amenities, human capital, and regional economic growth. Labour Econ 18(6):755–766CrossRef

Feldman MP (2001) The entrepreneurial event revisited: firm formation in a regional context. Ind Corp Change 10(4):861–891CrossRef

Florida R (2002) The rise of the creative class. Wash Mon 34(May):15–25

Glaeser EL, Kerr WR (2010) What makes a city entrepreneurial? Harvard Kennedy school policy briefs. Harvard Kennedy School, Harvard, pp 1–4

Glaeser EL, Kallal HD, Scheinkman JA, Shleifer A (1992) Growth in cities. J Polit Econ 100(6):1126–1152CrossRef

Glaeser EL (2007) Entrepreneurship and the city. NBER Working Paper n°13551

Harms R, Groen A (2017) Loosen up? Cultural tightness and national entrepreneurial activity. Technol Forecast Soc Change 121:196–204CrossRef

Iftikhar MN, Ahmad M, Audretsch DB (2020) The knowledge spillover theory of entrepreneurship: the developing country context. Int Entrep Manag J 16:1327–1346CrossRef

Jacobs J (1969) The economy of cities. Vintage, New York

Light PC (2009) Social entrepreneurship revisited. Stanford Soc Innov Rev 7(Summer):21–22

Maldonado LC, Nieuwenhuis R (2015) Family policies and single parent poverty in 18 OECD countries, 1978–2008. Community Work Fam 18(4):395–415CrossRef

Mayer H, Leick B (2019) Entrepreneurship and ageing: exploring an economic geography perspective. In: Backman M, Karlsson C, Kekezi O (eds) Handbook of research on entrepreneurship and aging, Chapter 3. Edward Elgar, Cheltenham, pp 88–108

Minniti M (2005) Entrepreneurship and network externalities. J Econ Behav Organ 57(1):1–27CrossRef

Moulaert F, Ailenei O (2005) Social economy, third sector and solidarity relations: a conceptual synthesis from history to present. Urban Stud 42(11):2037–2053CrossRef

Moulaert F, MacCallum D (2019) Advanced introduction to social innovation. Edward Elgar, Cheltenham

Mulgan G (2006) The process of social innovation. Innov Technol Govern Glob 1(2):145–162

Mulgan G, Tucker S, Ali R, Sanders B (2007) Social innovation: hat is it, why it matters and how it can be accelerated. The Young Foundation, London

Nelson RR (1992) National innovation systems: a retrospective on a study. Ind Corp Chang 1(2):347–374CrossRef

Nelson RR (1993) National innovation systems, a comparative analysis. Oxford University Press, Oxford

Pol E, Ville S (2009) Social innovation: buzz word or enduring term? J Socio Econ 38(6):878–885CrossRef

Porter ME (2000) Location, competition, and economic development: local clusters in a global economy. Econ Dev Q 14(1):15–34CrossRef

Roberts N, King P (1988) Policy entrepreneurs: catalysts for innovative public policy. Acad Manag Proc 1988(1):313–317CrossRef

Rosenthal SS, Strange WC (2004) Evidence on the nature and sources of agglomeration economies. In: Henderson JV, Thisse JF (eds) Handbook of regional and urban economics, Chapter 49. Elsevier, Amsterdam, pp 2119–2171

Saxenian A (1994) Regional advantage: culture and competition in Silicon Valley and Route 128. Harvard University Press, Harvard

Spigel B, Harrison R (2018) toward a process theory of entrepreneurial ecosystems. Entrep J 12(1):151–168

Sternberg R (2009) Regional dimensions of entrepreneurship. Found Trends Entrep 5(4):211–340CrossRef

Sternberg R (2021) Entrepreneurship and geography—some thoughts about a complex relationship. Ann Reg Sci. https://doi.org/10.1007/s00168-021-01091-wCrossRef

Vega G, Kidwell RE (2007) Toward a typology of new venture creators: similarities and contrasts between business and social entrepreneurs. N Engl J Entrep 10(2):15–28

Waddock SA, Post JE (1991) Social entrepreneurs and catalytic change. Public Adm Rev 51(5):393–401CrossRef

Weerawardena J, Mort GS (2006) Investigating social entrepreneurship: a multidimensional model. J World Bus 41(1):21–35CrossRef

Wurth B, Stam E, Spigel B (2021) Toward an entrepreneurial ecosystem research program. Entrep Theory Pract. https://doi.org/10.1177/1042258721998948CrossRef

Zahra SA, Gedajlovic E, Neubaum DO, Shulman JM (2009) A typology of social entrepreneurs: motives, search processes and ethical challenges. J Bus Ventur 24(5):519–532CrossRef

Title: Cities and social entrepreneurship
Authors: Benoît Desmarchelier
Faridah Djellal
Faïz Gallouj
Publication date: 24-08-2022
Publisher: Springer Berlin Heidelberg
Published in: The Annals of Regional Science / Issue 3/2023
Print ISSN: 0570-1864
Electronic ISSN: 1432-0592
DOI: https://doi.org/10.1007/s00168-022-01176-0

Analysis of the spatial allocation of resources for a sustainable rural economy: A wide-areal coordination approach

Original Paper

Self-employment career patterns in the Netherlands: exploring individual and regional differences

Open Access
Special issue paper

Digital entrepreneurship indicator (DEI): an analysis of the case of the greater Paris metropolitan area

Special Issue Paper

Promoting transportation policies in the context of compact city strategies: the case of Toyama City, Japan

Original Paper

The geography of job automation in Ireland: what urban areas are most at risk?

Open Access
Original Paper

The relationship between R&D knowledge spillovers and employment entry

Open Access
Special Issue Paper