Uncovering the influence of social venture creation on commercial venture creation: A population ecology perspective |
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| Institution: | 1. Robert A. Foisie School of Business, Worcester Polytechnic Institute, 100 Institute Road, Worcester, MA 01609-2280, United States;2. Department of Marketing and Entrepreneurship, College of Business Administration, Kent State University, P.O. Box 5190, Kent, OH 44242-0001, United States;1. Department of Management Programs, Florida Atlantic University, 313 Fleming Hall, 777 Glades Rd., Boca Raton, FL 33431, USA;2. IZA, Bonn, Germany;3. Department of Economics, Boston College, 140 Commonwealth Ave, Chestnut Hill, MA 02467-3806, USA;1. University of Alberta, Edmonton, AB T6G 2R6, Canada;2. Cardiff University, Cardiff, Wales CF10 3EU, UK;1. Department of Management, Hankamer School of Business, Baylor University, United States;2. Department of Management and Entrepreneurship, Kelley School of Business, Indiana University, United States;3. Initiative for Studies in Transformational Entrepreneurship, Wisconsin School of Business, University of Wisconsin, United States;1. Technische Universität München, TUM School of Management, Arcisstr. 21, 80333 Munich, Germany;2. IE Business School, Maria de Molina 11, 13, 15, 28006 Madrid, Spain;3. Hankamer Business School, Baylor University, One Bear Place #98006, Waco, TX 76798-8006, United States |
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| Abstract: | This study takes a population ecology perspective to uncover the influence that social venture creation exerts on commercial venture creation. Data from 88 Ohio counties during 2003–2007 uncovered a negative relationship suggesting that social ventures compete for resources with commercial ventures at the time of founding. Additionally, we found that income levels in the county affected the inter-population dynamics between social and commercial ventures. Specifically, lower income levels exacerbated the competitive relationship between social and commercial ventures. Low levels of government spending on welfare were found to suppress commercial start-up rates. |
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