human capital, and building community resilience (Morrison, et al, 2017, Bosma et al.,
2020).
At the same time social entrepreneurship, a specialized form of local entrepreneurship,
aims to tackle societal challenges such as inequality, unemployment, and limited access
to essential services (Phillips et al, 2015, Phan Tan, L. 2022). With this, social
entrepreneurs establish ventures that prioritize social value over profit, addressing
systemic issues through innovative solutions (Mair and Marti 2006). For instance,
initiatives focusing on marginalized groups, such as women (Assaf, A. 2024), youth (Ong,
2021), and people with disabilities (Ortiz, 2021), not only create economic opportunities
but also promote social inclusion and cohesion (Sundin, 2011).
In the broader context of social development, social entrepreneurs often collaborate with
local governments, NGOs, and community organizations to amplify their impact
(Kovanen, 2021). Their work directly contributes to achieving societal goals, including
the Sustainable Development Goals (SDGs), by addressing social inequities and fostering
inclusive growth (UN, 2015).
Additionally, local entrepreneurship plays a vital role in preserving and promoting cultural
heritage (Brinia, et al, 2024). Entrepreneurs leverage traditional knowledge and local
resources to develop businesses that celebrate (Mars, 2022) and sustain cultural
identities (Cohen & Winn, 2007). This is particularly relevant in regions with rich cultural
histories, where entrepreneurship can serve as a bridge between modernization and
heritage preservation (Lyon & Sepulveda, 2009).
Despite its potential, the impact of local entrepreneurship on social development faces
significant challenges, such as limited access to capital (Odeyeme, et al, 2024),
inadequate infrastructure (Ratten, V., 2023), and unsupportive policy environments can
hinder the growth and influence of local businesses (Bruton et al., 2010). Moreover, while
entrepreneurship can promote inclusivity, uneven access to entrepreneurial opportunities
may inadvertently reinforce social inequalities (Welter et al., 2017).
Empirical evidence underscores the connection between local entrepreneurship and social
development (Buratti, N., Sillig, C., & Albanese, M., 2022). In developing regions,
entrepreneurial ventures often drive economic diversification, reduce unemployment,
and empower vulnerable populations (Naudé, 2010). For instance, microfinance
initiatives in Africa and South Asia have enabled individuals, particularly women, to start
small businesses, significantly improving household incomes and overall community well-
being (Yunus, 2020). Case studies from Latin America further illustrate how community-
based enterprises contribute to sustainable resource management and social equity
(Peredo & McLean, 2006, Batista et al, 2022). These examples highlight the
transformative potential of entrepreneurship in addressing both social and environmental
challenges.
Key contributions of local entrepreneurship to social development include:
− Economic Empowerment and Job Creation: Entrepreneurship empowers
marginalized communities by creating jobs, increasing income levels, and improving
living standards. Small and medium-sized enterprises (SMEs) are often the primary
drivers of economic activity in underserved areas, providing opportunities that uplift