Which Entrepreneurial Type is more Innovative?

Attention to social entrepreneurship has increased over the years. Although previous research on this topic has been case-based or conceptualized, it has been suggested that social and conventional entrepreneurs differ with regards to innovation. This study aims to improve the understanding of this relationship by empirically testing it. The definitions of social entrepreneurship in the literature are broad, but this study only takes into account two definitions of social entrepreneurship, namely (1) the double bottom line definition, that both social and economic return are important; and (2) that the primary goal of social entrepreneurs is to create social value. Using quantitative research it is analysed if social entrepreneurs are different from conventional entrepreneurs with regards to innovativeness. The main findings are that social entrepreneurs are more innovative than conventional entrepreneurs. This reinforces findings of previous literature on social entrepreneurship. Despite the fact that social entrepreneurs are found to be more innovative than conventional entrepreneurs, the explorative analysis shows that this is not always the case. Social entrepreneurs living in different level of economic development relate differently to innovation. In factor-driven economies there is no significant difference between social and conventional entrepreneurs. In efficiency-driven economies, social entrepreneurs are more innovative than conventional entrepreneurs. In innovation-driven economies, social entrepreneur are less innovative than conventional entrepreneurs. Furthermore, it is found that social entrepreneurs in factor-driven and efficiency-driven economies show no significant difference in the likelihood of being innovative, while social entrepreneurs in innovation-driven are less likely to be innovative compared to social entrepreneurs in factor-driven economies. The study also analysed two factors; fear of failure and opportunity recognition. These may be of influence on the relationship between social entrepreneurship and innovation. The conclusion is that both the fear of failure and opportunity recognition of entrepreneurs does not have an effect on this relationship. Further research should be done on other factors that may explain this relationship. The research has implications for corporate leaders and policy makers in that it clarifies the relationship between social entrepreneurship and innovation. Policies should stimulate social entrepreneurship more since they are more innovative than conventional entrepreneurs and thus this will lead to economic growth. Aside from the innovation aspect, due to the goals of social entrepreneurs, there is also a contribution to the environment and sustainable development.