Household Income, Income Inequality, and the Motivation of Social Entrepreneurs: A Multilevel Analysis Across 40 Countries

Abstract

Drawing on the push–pull framework and inequality theory, this study examines how individual household income and national income inequality shape the motivations behind social entrepreneurship. It focuses on three mutually exclusive motivational types: opportunity-, necessity-, and mixed-motivated social entrepreneurs. Using a sample of over 300,000 adults across 40 countries from the 2022 Global Entrepreneurship Monitor, the study applies multilevel logistic regression analysis to test both direct and cross-level effects. Findings show that household income positively influences the likelihood of opportunity-motivation and negatively influences necessity-motivation. National income inequality increases the likelihood of all three motivation types. Moreover, in highly unequal countries, the income advantage for opportunity-driven motivation is more pronounced among higher-income individuals, while the likelihood of mixed-motivation shows a less distinct pattern. This study contributes to the motivation of social entrepreneurs and inequality research and provides policy implications for promoting more inclusive and equitable access to resources for entrepreneurs that aim to enhance social wealth.