Social entrepreneurship in the Adriatic–Ionian countries: Policy background and entrepreneurial ecosystems development

While the significant role of social entrepreneurship in driving sustainable development is widely acknowledged, its recognition and growth across European countries is highly uneven, especially in the Adriatic Ionian macro region. In such circumstances, the notable disparities in institutional and business environments pose challenges to bridging the gaps, requiring an assessment of how these environments are evolving and under what conditions. This chapter provides an overview of the policy framework for social entrepreneurship and the factors that may hinder or support social and traditional entrepreneurial activity in this macro-region. To this end, our research explores how the level of entrepreneurial ecosystems and the underlying dynamics of the single components have evolved over time, identifying strengths and weaknesses within countries. Using Global Entrepreneurship Index (GEI) data, the evidence indicates divergence in the overall level of development of the entrepreneurial ecosystems, with improvements in Slovenia and Italy and constant or declining trends in the Balkan countries. The major issues for the latter concerns unstable institutions and a low propensity to take entrepreneurial risks. This is in sharp contrast with their strengths: start-up skills and a high propensity and capacity to enter global markets. The study contributes to the broad policy debate on social entrepreneurship development and offers insights for future research on this topic. Its findings have implications for the sustainable and inclusive growth of the Adrion area, especially considering the ongoing migration flows in the EU.