Abstract

This study explores how formal and informal institutional contexts influence social entrepreneurs in Egypt and Tunisia; Tunisia is characterized by legal recognition and a framework governing social enterprises, whereas Egypt does not have a legal framework. Both countries are characterized by prolonged political uncertainty and high levels of informality. Utilizing Institutional theory as the main conceptual framework, the study explores how different contextual factors shape the challenges and opportunities faced by social entrepreneurs. Drawing on qualitative data from founders of social enterprises and experts in the field from both countries, this research aims to identify how institutional regulatory voids, normative pressures, and cognitive framings intersect to shape entrepreneurial challenges and opportunities. Both Egypt and Tunisia present a unique context for comparison due to their entrenched inequalities and hybrid formal-informal institutions.

The findings of this study highlight that social entrepreneurs in Egypt and Tunisia operate within different but comparably constraining formal and informal institutions. Regarding the formal institutions, social entrepreneurs in Egypt mainly face issues related to bureaucratic system, weak rule of law, and donor influence. Tunisian social entrepreneurs suffer from regulatory failure and ineffective implementation of the new law on social enterprises. For informal institutions, social entrepreneurs in Egypt have been suffering from limited and ineffective social entrepreneurship education, as well as restrictive informal market agreements and gendered social expectations. Whereas in Tunisia, the informal institutions have been substituting the formal institutions through the reliance on informal networks for enterprise growth as well as reliance on entrepreneurial knowledge. This study

8 addresses a gap in the literature through providing insights in the MENA region as well as shedding light on how formal and informal institutions interact, from a multidimensional perspective. Finally, the study provides insights for policymakers and international development agencies aiming to foster and encourage entrepreneurship as a tool for tackling social issues. This contribution is highly relevant in post-crisis recovery countries, where institutional instability persists.

School

School of Global Affairs and Public Policy

Department

Public Policy & Administration Department

Degree Name

MA in Public Administration

Graduation Date

Fall 2-15-2026

Submission Date

1-28-2026

First Advisor

Mohamed ElKaramany

Committee Member 1

Ghada Barsoum

Committee Member 2

Ahmed Fayed

Extent

127p.

Document Type

Master's Thesis

Institutional Review Board (IRB) Approval

Approval has been obtained for this item

Disclosure of AI Use

Thesis text drafting; Thesis editing and/or reviewing; Translation; Data/results generation and/or analysis; Data/results visualization

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