LOCAL GOVERNANCE AND ENTERPRISE DYNAMICS: ASSESSING THE INFLUENCE OF MICRO AND MACRO ENTERPRISES ON SOCIAL ENTREPRENEURSHIP AND COMMUNITY VALUE CREATION

Abstract

Entrepreneurial ecosystems that connect economic activity with the creation of social value at the local level are becoming more and more important to local self-governance. Within the context of Chennai Indias urban governance framework this study investigated the impact of micro and macro enterprises (MMEs) on social entrepreneurship and their contribution to local socioeconomic development. Through the integration of enterprise-led social innovation and local governance principles the study investigated how institutional policy and environmental factors impact social value creation and entrepreneurial performance. Structural Equation Modeling (SEM) was used to examine the connections between macro-level policy conditions micro-level operational factors and social entrepreneurship outcomes in a survey of 480 MME respondents from different industrial zones. The findings showed that entrepreneurial performance and in turn the perceived socioeconomic benefits at the local level were strongly influenced by both micro and macro environmental factors. The results also showed that employment creation sustainable local development and improved community welfare are all benefits of successful entrepreneurship in the MME sector. In order to support local self-government goals the study suggested a governance-oriented social entrepreneurship framework that emphasizes cooperative policy mechanisms between local government and businesses. This study offers useful insights for policymakers administrators and practitioners who want to use enterprise dynamics for inclusive urban development and participatory local governance by placing entrepreneurship within the framework of local governance.