Impact Orientation in Early-Stage Entrepreneurs: Understanding Its Socio-Economic Determinants through a Cross-Country Analysis

Abstract

In recent decades, entrepreneurship has come to be widely recognized as a powerful driver of economic growth, innovation, and social change (Acs et al., 2008; Autio et al., 2014). Yet, while traditional entrepreneurship scholarship has predominantly emphasized profit-maximizing and growth-oriented ventures, a growing stream of research highlights the importance of impact orientation, entrepreneurial activity that prioritizes social or environmental value alongside, or even above, financial returns (Mair & Marti, 2006; Shepherd et al., 2019). This shift reflects broader societal expectations that entrepreneurship should address pressing global challenges such as climate change, inequality, and governance failures (Sternberg et al., 2022). Particularly in contexts characterized by weak formal institutions, impact-oriented entrepreneurship may emerge not merely as a value-driven choice but as a pragmatic response to structural voids and unmet societal needs.