The Institutional Analysis of Development of Social Entrepreneurship in the USA, UK and Germany

Since the beginning of the world economic crisis the level of unemployment across different countries increased significantly and so did social and welfare polarization of people. Under these conditions the emergence of social entrepreneurship could be viewed as an additional opportunity for the disadvantaged people to enhance their welfare and improve their living quality. As all the phenomena of such kind its activity should be coordinated by some special institutions in order to develop successfully, thus enhancing its aggregate performance. According to the rating of the Global Entrepreneurial Monitor (GEM), the United States have the highest rank in the growth rate of social enterprises for a short-time perspective, which can be determined by the effect of such factors as Community Development Financial Institutions (CDFI), which provide some incentives for the business as well as for the communities to take part in the social projects. The paper reviews different kinds of economic systems inherent to certain types of integration between financial and industrial resources. So, the system of industrial development of the USA relies in most part on the stock market, while that of several European countries, such as the United Kingdom and Germany prefer to use credit resources, or the loan capital, though the United Kingdom is known as a country that has a highly developed stock market system. In contrast to that, the financial systems of the developing economies, such as the Russian one, present to use both types of the financial systems aforementioned and combine the microcredit institutions with those of stock market. The paper contains some implications for such countries suggesting them to consider some opportunities of evolving their market-based institutions and bank sector to create a more suitable institutional system to support the development of social entrepreneurship.