The economic impact of social entrepreneurship: an exploratory analysis of the linkage between social cooperation and local growth in Italy

Abstract

With this article I aim to investigate the linkage between social entrepreneurship and local economic growth through the lens of relational capital. Focusing on the Italian context, I consider the role of social cooperation — which constitutes a fundamental expression of social entrepreneurship in Italy — in stimulating the economic growth of provinces (NUTS 3). Specifically, I conjecture that social cooperative can contribute to local economic growth through the development of relational networks based on the principle of unconditional reciprocity that enable the spread of generalized trust, which, as reported in a large body of literature, is a key factor in the advancement of market economies. A panel analysis covering the period 2012-2019 shows results that confirm the hypothesis that social cooperation may be a determinant of local growth.