Social Entrepreneurship and Regional Economic Development : Focusing on Government-driven Social Enterprises in South Korea

Abstract

This study aims to empirically examine the relationship between social entrepreneurship and regional economic development, focusing on government-driven social enterprises in South Korea. Results from panel regression models indicate that social entrepreneurship measured as the number of government-driven social enterprises has a positive relationship with regional economic development. As claimed in numerous previous studies on regional economic development, results of this study also indicate that physical capital, human capital, knowledge capital, and entrepreneurship are all significant and important factors shaping regional economic output. The results suggest a new direction for policy that focuses on instruments to promote social entrepreneurship. Thus, local governments especially need to make efforts to promote job creation in social enterprises because they possess the ability to efficiently respond to the immediate needs of local social enterprises. These government-driven social enterprises can be contributable to regional economic development through creating new jobs in South Korea.ocial entrepreneurship measured as the number of government-driven social enterprises has a positive relationship with regional economic development. As claimed in numerous previous studies on regional economic development, results of this study also indicate that physical capital, human capital, knowledge capital, and entrepreneurship are all significant and important factors shaping regional economic output. The results suggest a new direction for policy that focuses on instruments to promote social entrepreneurship. Thus, local governments especially need to make efforts to promote job creation in social enterprises because they possess the ability to efficiently respond to the immediate needs of local social enterprises. These government-driven social enterprises can be contributable to regional economic development through creating new jobs in South Korea.