Uncovering the influence of social venture creation on commercial venture creation: A population ecology perspective

Abstract

This study takes a population ecology perspective to uncover the influence that social venture creation exerts on commercial venture creation. Data from 88 Ohio counties during 2003–2007 uncovered a negative relationship suggesting that social ventures compete for resources with commercial ventures at the time of founding. Additionally, we found that income levels in the county affected the inter-population dynamics between social and commercial ventures. Specifically, lower income levels exacerbated the competitive relationship between social and commercial ventures. Low levels of government spending on welfare were found to suppress commercial start-up rates.