The Bridge to Sustainable Development: Understanding the Influence of Sociocultural and Economic Elements on Social Entrepreneurship in Middle-Income Nations

The concept of social entrepreneurship is often grounded in the broader notion of entrepreneurship, being commonly examined from two perspectives: the entrepreneurial dimension and the social dimension. This research delves into the multifaceted relationship between social entrepreneurship and the economic and social development of middle-income countries, further addressing the dynamic nature of social entrepreneurship studying the socio-economic aspects that influence such activity. The findings suggest that social entrepreneurship can both enhance and challenge sustainable development, emphasising the need for a nuanced understanding of the interplay between these variables to effectively foster social progress in middle-income nations. Focusing on Brazil, Colombia, Guatemala, India, Indonesia, Iran, Egypt, Morocco and South Africa over an 11-year period (2012-2022) and using Feasible Generalised Least Squares Regression, the analysis uncovers the complex relationships between economic freedom, income inequality, education and social entrepreneurial activities. The results highlight that economic freedom (coefficient: 0.25), income inequality (0.91) and education (0.28) positively influence social entrepreneurship, while foreign direct investment (-0.15) and unemployment (-0.04) have negative effects. Social entrepreneurship positively impacts per capita income (0.03) but shows a negative association with the Human Development Index (-0.013). The research aims at advancing the scholarly understanding by systematically identifying how specific socio-economic variables either facilitate or hinder social entrepreneurship, offering a foundation for targeted interventions that promote sustainable development in middle-income economies.