Baltic Journal of Economic Studies (Jun 2020)
ASSESSMENT AND FORECASTING OF FAVOURABLE CONDITIONS FOR SOCIAL ENTREPRENEURSHIP DEVELOPMENT
Abstract
The objective of the study is to develop favourable environment’s assessment and forecasting methodology for social entrepreneurship development in market economies. Methodology. Econometric method to build regression model of country’s favourable conditions for social entrepreneurs’ relationship to its determinants is applied in the research. The research is based on previously developed multi-step algorithm: statistical data systematization, regression model building and relevant variables’ selection, new regression model building excluding insignificant variables, type of regression model setting and scenario forecasting. The type of regression model that best describes the correlation nature has been determined. Scenario forecasting of country’s favourable conditions’ changes for social entrepreneurs based on “state policy support of social entrepreneurship development” implementation has been carried out. Three scenarios of social entrepreneurship development have been designed: pessimistic, inertial (basic) and optimistic. Research data comes from statistical databases of “The best countries to be a social entrepreneur” poll conducted by the Thomson Reuters Foundation in 2016 and 2019. Study results revealed that country’s favourable conditions for social entrepreneurs’ development are mostly affected by government policy support and investment access which form particular environment aimed at successful economic performance inside a country. Practical implications. Assessment and forecasting of favourable development of social entrepreneurship reveals its strengths and weaknesses that need to be improved through implementation of centralized “government policy for the development of social entrepreneurship.” This enables countries not only to keep scores of “the best country for the development of social entrepreneurship”, but also to improve their position in the future. Value/originality. Nowadays social entrepreneurship is becoming a tool to overcome current challenges and preserve human potential by the resurgence of innovative forms of business. One of the ways to achieve the objective is proposed in our study.
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