ABSTRACT

This chapter aims to contribute to understanding in the area mainly by highlighting three aspects of the ethical entrepreneurship picture. Firstly, the dual level impact of the ethical dimension on entrepreneurship is drawn out. Secondly, our discussion links in with the theoretical conceptualization of 'constrained entrepreneurship' to argue ethical entrepreneurship as constrained entrepreneurship in action. Thirdly, ethical conduct is viewed not only from the dual ethical and constrained perspectives but also from a transaction cost perspective. While necessarily an artificial dichotomy, since there is usually an interactive flow of influence between the levels of micro/individual and broader societal ethical considerations, the dual level differentiation is analytically convenient. Entrepreneurs can capitalize on the opportunities arising from serving a heightened ethical conscience in an economically integrated world. The constrained entrepreneurship concept that we operationalize to incorporate the ethical dimension sets limits, yet also provides direction for seeking opportunities that arise from intentionally observing ethical mores.