Xenophilic Theory of Social Entrepreneurship

The Psychology of Social Entrepreneurship: From Compassion to Xenophilia (opposite Xenophobia)

The field of entrepreneurship is generally defined by the pursuit of opportunities to add value. However, for social entrepreneurs, the stakes are different. This unique breed of business leader aims to tackle complex social issues—often in different cultural contexts—in addition to producing economic value.

But what drives someone to take on this double burden? Research into the motivations of social entrepreneurs reveals a complex psychological landscape that goes far beyond simple charity.

The Traditional View: Altruism vs. Self-Interest

There are two prevailing theories regarding what sparks a social venture:

  • Prosocial Motives: The most common explanation is that altruism and compassion inspire social entrepreneurs to provide social benefits. According to Miller et al. (2012), this "heart-led" approach is the primary engine for social change.
  • Self-Interest: Conversely, other academics hypothesize that ego is a necessary component. Motivations may include the need for self-aggrandizement, status-seeking, or a deep personal emotional engagement with a specific societal issue.

A New Motivator: The Role of Xenophilia

While altruism and ego explain domestic social work, what explains the entrepreneur who travels halfway across the world to solve a problem in a culture they don't belong to? Recent research points to a third, powerful motivator: Xenophilia.

Xenophilia is defined as the love, attraction, or appreciation of foreign people, manners, customs, or cultures. It is the direct opposite of xenophobia.

While it may be human nature to be uncertain or afraid of strangers, Tucker and Croom (2021) argue that this appreciation for the "other" is a critical driver for international social entrepreneurship. They suggest that most major faiths promote kindness and friendliness with outsiders, and that specific social class beliefs may nurture this trait.

The Strategic Advantage of the "Outsider"

For social entrepreneurs, xenophilia that manifests through cross-cultural connection offers a variety of strategic advantages that cannot be attained from staying within one's own community:

  • Novelty: Exposure to new ideas and foreign concepts that can be adapted to new markets.
  • Network Expansion: Opportunities for new relationships and access to communities with diverse skill sets.
  • Value Creation: A heightened ability to comprehend other cultures, allowing the entrepreneur to see opportunities to add value where locals might see the status quo.

Conclusion

Overall, the motivations that drive social entrepreneurs to pursue social ventures in foreign contexts are multifaceted. It is rarely just about "helping people" or "making money." By understanding the role of xenophilia alongside altruism, social entrepreneurs can develop more effective strategies for addressing social problems in diverse contexts.



 

Sources

Miller, T. L., Grimes, M. G., McMullen, J. S., & Vogus, T. J. (2012). Venturing for others with heart and head: How compassion encourages social entrepreneurship. Academy of management review, 37(4), 616-640.

Tucker, R., & Croom, R. M. (2021). A xenophilic perspective of social entrepreneurship. Journal of Business Venturing Insights, 15, e00217.

"The best startups are often spinout ventures."

"The best startups are often spinout ventures."
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