BRIDGING INSTITUTIONAL GAPS: SOCIAL ENTREPRENEURSHIP AND SUSTAINABLE DEVELOPMENT IN PAKISTAN
Abstract
This study examines how formal and informal institutions shape social entrepreneurship (SE) in Pakistan, an emerging economy with weak regulatory structures but strong normative and cultural foundations. Using Scott’s institutional theory, we employed a sequential mixed-methods design: 15 semi-structured interviews and a survey of 497 SE actors analyzed through structural equation modeling (SEM). Results show that formal factors—government regulations, access to finance, and public spending—positively and significantly predict SE activity. Among informal factors, public service motivation, entrepreneurial attitude, social orientation, and innovativeness are significant drivers, whereas the COVID-19 pandemic exerts a negative influence and social networks show no direct effect. SE activity strongly predicts social, economic, and environmental development outcomes, confirming its alignment with the Sustainable Development Goals (SDGs). Findings highlight the complementarity of formal and informal institutions in fostering SE. Policy implications stress the importance of supportive legal frameworks, finance, and cultural reinforcement to accelerate sustainable development.
Keywords: Social entrepreneurship; Institutional theory; Formal institutions; Informal institutions; Sustainable Development Goals (SDGs); Mixed-methods; Structural equation modeling.
