The political dimension and political processes in general have an impact on the overall economic environment. An enabling political environment is essential for the emergence, development and promotion of social entrepreneurship.

Subdimension: Political Stability

Political stability has great effect on the economy and economic growth, as well as for business development on a global level. the political situation, in terms of stability or instability, affects entrepreneurial behaviors, activities and performances and could cause turbulence in the economy, which reflects on the entrepreneurship environment. Country’s political stability relates to economic growth, allows reforms in the economy, facilitates influx of investment and improves the business environment. This relates to increased entrepreneurial activity and increases the entrepreneurial contribution to growth and the potential of entrepreneurship. Political stability contributes to a conducive political and economic climate, and is a pre-condition for development of businesses everywhere in the world.

Political Stability Indicators

Political stability indicators provide insight into countries stability as a pre-condition for development of social businesses everywhere.

The effectiveness of the Government is one of the key indicators of the political dimension, especially for political stability, where it provides insight into the degree and ability to which the state fulfills the defined functions. 

Political stability is one of the main preconditions for the development of entrepreneurship in general.

The rule of law refers to whether legal regulations have a selective approach in the economy. The rule of law as an indicator highlights the perception of actors in the ecosystem, the extent to which they believe in the legal system and the likelihood of crime and violence.

Corruption is a phenomenon that has a negative impact on the economic performance. Corruption disrupts the environment for doing business, and reduces the trust of businessmen in institutions. 

Civil liberties as an indicator is one of the main creators of the climate for the development of social, but also entrepreneurship in general.

Subdimension: Political Will

This sub-dimension refers to the political will within the political dimension and refers to the creation of policies for the development of social entrepreneurship as well as institutional coordination for the implementation of those policies. Namely, political will is important for the implementation of any reform or policy in any area. For the development of social entrepreneurship, political will is needed to prioritize the sector and raise it higher on the political agenda.

Political Will Indicators

Social entrepreneurship development policies are important for setting up and having a strategic approach to the development of the sector.

Cooperation between institutions and actors is important not only in creating strategic documents, but also continuously because social entrepreneurship as well as the economy is a system of bound vessels. Cooperation in this format is extremely important for the development of a stable system of social entrepreneurship.

This indicator is important for the model of strategic management of the development processes of social entrepreneurship.