Purpose-driven entrepreneurship and innovation: the moderating effect of altruism

Purpose-driven entrepreneurs see their businesses as a vehicle for making a tangible and positive difference in the world, with profit serving as a crucial enabler of that mission. This study of 30,000 new and established entrepreneurs across 50 countries from the Global Entrepreneurship Monitor examines how motivation and altruism influence product/service innovation and the adoption of new technologies or processes. Utilizing a conceptual framework where business and entrepreneur objectives shape business motivations, which then drive strategic decisions like innovation, the analysis reveals that purpose-driven entrepreneurship aims for broader market impact and positively affects both product/service innovation and the implementation of new technologies or processes. Notably, national altruism negatively moderates the link between purpose and innovation. This finding is further supported by an expanded sample considering cultural dimensions. Therefore, in less altruistic societies, policymakers should provide greater support to impactful entrepreneurs due to greater market opportunities to innovate solutions to social and environmental problems.