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The authors conceptualize social entrepreneurship as a source of social capital which, when present in the environment, enhances commercial entrepreneurship. They also argue that social entrepreneurship should be recognized as a second form of Baumol's (1990) productive entrepreneurship and that it will therefore compete at the individual level for resources with commercial entrepreneurship. Unlike institutional void theory, they see social entrepreneurship as conditional on institutional quality, but consistent with the institutional void perspective they see it as filling the gaps where government activism is lower.
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