Uncovering the influence of social venture creation on commercial venture creation: A population ecology perspective

• Investigated the influence of social venture creation rates on commercial venture creation rates
• Conducted simultaneous equations analyses on a panel of all counties in the state of Ohio
• Social venture creation rates exerted a negative influence on commercial venture creation.
• Income levels moderated the relationship.
• Social and commercial ventures found to be in full competition at the time of founding

This study takes a population ecology perspective to uncover the influence that social venture creation exerts on commercial venture creation. Data from 88 Ohio counties during 2003–2007 uncovered a negative relationship suggesting that social ventures compete for resources with commercial ventures at the time of founding. Additionally, we found that income levels in the county affected the inter-population dynamics between social and commercial ventures. Specifically, lower income levels exacerbated the competitive relationship between social and commercial ventures. Low levels of government spending on welfare were found to suppress commercial start-up rates.