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This paper aims to improve upon the initial quantitative assessment of Kerlin’s macro-institutional social enterprise (MISE) framework (Monroe-White et al., 2015) to test for the effect of country-level institutions on the social enterprise sector. Major improvements are the inclusion of the civil society variable and expansion of the culture component in the analysis.

By following Kerlin’s (2013) original work that draws on the theory of historical institutionalism, this paper employs multi-level regression analysis to test the effect of country-level institutional factors on organizational-level social enterprise across countries. This analysis uses new macro-level data specifically for civil society and culture components.

The initial assessment of the framework found that several country-level factors had a significant effect on the variance in the size of the social enterprise sector across countries. The analysis provided here additionally shows a significant positive influence of civil society on the size of the social enterprise sector and shows that formal institutions capture the effect of informal cultural institutions when included in the model together.

This analysis provides policymakers, development actors and researchers with a better understanding of the influence of civil society on social enterprises and the interaction between formal and informal institutional underlying factors.

This paper’s significant contribution is the addition of civil society in the MISE analysis, which was not possible before owing to lack of data, and additional cultural analysis.

The purpose of this paper is to provide the first large data-set regression analysis to test Kerlin’s (2013) macro-institutional social enterprise framework in relation to the country social enterprise models that flow from it. Kerlin (2013) offers a conceptual framework for country social enterprise models that allows countries to retain their unique understanding of social enterprise and better understand the factors influencing its development.

This paper draws on the theory of historical institutionalism and multiple global datasets to test formal hypotheses on the relationship between macro-institutional factors and the size of the social enterprise sector across countries. Social enterprise data were obtained from the 2009 Global Entrepreneurship Monitor dataset. Hypotheses were tested using logistic hierarchical linear modeling.

Results provide support for the framework at a significant level. Nearly half of the variance in the size of the social enterprise sector can be attributed to countries-level factors. We also find that the size of the social enterprise sector varies by economic competitiveness rank, size of the welfare state and collectivist cultural orientation.

The countries included in this study are not representative of the global landscape. Researchers are encouraged to test the framework with a more representative sample of countries, including those in the Global South.

The paper includes implications for policy makers and researchers seeking to facilitate cross-regional dialogue, the transfer and support of social enterprises and research.

This paper fulfills an identified need to advance the field of social enterprise by quantitatively testing established frameworks.