Digital Transformation of the Informal Institutional Environment and its Impact on Social Entrepreneurship Taking into Account the Life Cycle

Social entrepreneurship is a relatively new form of solving problems in society. The development of social entrepreneurship depends on many factors, particularly the formal and informal institutional environment. The latter is undergoing rapid transformations driven by digital technology. The purpose of this study is to analyze and substantiate the impact of digitalization on the informal institutional environment at various stages of a social enterprise’s life cycle. The study uses the data on European countries provided by international reports the Global Entrepreneurship Monitor (GEM) and European Index of Digital Entrepreneurship Systems (EIDES). Methodologically, we rely on regression and correlation analysis methods. The study provides evidence of the significance of the Internet accessibility to households for the development of social entrepreneurship. The research also shows the features of informal institutions for social entrepreneurship. The theoretical significance of this study is that we showed the patterns of social entrepreneurship development, taking into account the digital component of informal institutions. As for the practical significance of the study, we have demonstrated that it is important to consider specific stages in the life cycle of an organization and their characteristics in designing economic institutions to stimulate the development of social entrepreneurship.