The impact of social norms on entrepreneurial action

I've been asked many times what is the winning formula for development. Unfortunately, I don't believe there is any single one. Just an understanding of many systems and how they interact. It would be in fact, the sole and single responsibility of the community leaders to balance them as they operate.

"Our findings also suggest that the efficacy of state-level policies in the sponsoring of entrepreneurial growth is dependent upon the social norms that prevail in the entrepreneur's environment."

Conclusion: Bring awareness and basic understanding to leaders in their community regarding all implicit and explicit actions. Use evidence based studies to guide the model of the relationships. Currently, our scenes are decentralized and the primary driver that ties everyone together is the art itself. Everything seems to fall under that motivation.

Action: Centralize based on a real important criterias to balance both centralized and decentralized based policies to promote growth. Realizing that local social norms is very important.


Reference:

The impact of social norms on entrepreneurial action: Evidence from the environmental entrepreneurship context

http://www.sciencedirect.com/science/article/pii/S0883902609001037

Abstract

Using insights from institutional theory, sociology, and entrepreneurship we develop and test a model of the relationship between centralized and decentralized institutions on entrepreneurial activity. We suggest that both decentralized institutions that are socially determined as well as centralized institutions that are designed by governmental authorities are important in promoting firm foundings in the environmental context. In a sample of the U.S. solar energy sector we find that state-sponsored incentives, environmental consumption norms, and norms of family interdependence are related to new firm entry in this sector. Our findings also suggest that the efficacy of state-level policies in the sponsoring of entrepreneurial growth is dependent upon the social norms that prevail in the entrepreneur's environment. We expand entrepreneurship theory and the study of institutions and the natural environment by demonstrating the integral role that social norms play in influencing the creation of new firms and by illustrating the potential effect social norms have on the effect of policy that seeks to encourage environmentally responsible economic activity.

Keywords

• Sustainability; 
• Environmental entrepreneurship; 
• Social norms; 
• Incentives; 
• Public institutions

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Authors contributed equally.

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