Although a limited number of studies have suggested that financial factors significantly impact social entrepreneurs, the extent to which financial incentives influence the likelihood of starting a new social venture remains unclear. This paper aims to examine the role of perceived financial stability in shaping the propensity to embark on a new social entrepreneurial venture within a specific socio-economic context.
This study introduces perceived financial stability as a new determinant of social entrepreneurial intention (SEI) and uses two distinct measurement tools to validate this model. Separate statistical analyses are conducted using groups of samples (n = 204) to test the influence of perceived financial stability alongside other factors such as perceived social support and entrepreneurial social self-efficacy.
The results reveal that perceived financial stability, perceived social support and entrepreneurial social self-efficacy are all independent direct predictors of SEI. These factors also moderate the relationship between past experience and SEI. The study culminates in the development of the Hockerts model, highlighting the critical role of perceived financial stability in driving SEIs.
This research provides novel insights into how concerns about future financial security influence social entrepreneurs. It underscores the importance of perceived financial stability as a significant precursor to SEIs, offering a deeper understanding of the motivations behind social entrepreneurship.
