Social Entrepreneurship and the Power of Informal Institutions in Postcolonial Societies

Few studies have been conducted on social entrepreneurs and informal institutions, where the emerging economies in which they operate are addressed as postcolonial contexts. Based on this largely disregarded perspective, this study unravels how social entrepreneurs in postcolonial countries leverage informal institutions. Following 34 interviews with social entrepreneurs and entrepreneurship hub representatives in Kenya and Rwanda, we find that they proactively leverage informal institutions predominantly through collaborative efforts. How and with whom social entrepreneurs collaborate depends on both (a) the social entrepreneurs’ situating process, which is based on their experiences with and perceptions of the local historico-cultural heritage, and (b) their individual evaluation of informal institutions. Specifically, social entrepreneurs draw on international patrons when faced with pervasive dependencies, they mobilize community co-creation in response to societal constraints, and they build relationships with local elites and mobilize community-co-creation when they feel they can resort to Ubuntu mindsets. By debunking the dominant Western views in the literature, our findings propose a generative approach to informal institutions through a local historico-cultural lens in postcolonial countries. Drawing on these findings, this study offers two key principles as managerial advice for social entrepreneurs.