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Social capital and new business start-ups: the moderating effect of human capital

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  • Lars Ronning

Abstract

This paper adds to the literature on social capital and entrepreneurship. Along with human capital, social capital is perceived as resources that trigger and drive the entrepreneurial process. The network success hypothesis articulates social capital as a driver of entrepreneurial success, while the compensation hypothesis states that social capital compensates entrepreneurs for lack of human capital or financial capital. In this study the compensation hypothesis is tested by hypothesising moderating effects of human capital on the association between social capital and entrepreneurial activity. The results from logistic regression analysis applied on a sample of 712 Norwegian farm households show that farming experience and partly education diminish the positive associations found between social capital variables and entrepreneurial activity. Former start-up experience did not show significant moderating effects.

Suggested Citation

  • Lars Ronning, 2011. "Social capital and new business start-ups: the moderating effect of human capital," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 12(2), pages 207-226.
    • Handle: RePEc:ids:ijesbu:v:12:y:2011:i:2:p:207-226
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    Citations

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    Cited by:

    1. Nuryakin & Vincent Didiek Wiet Aryanto & Mulyo Budi Setiawan, 2018. "Mediating effect of value creation in the relationship between relational capabilities on business performance," Contaduría y Administración, Accounting and Management, vol. 63(1), pages 33-34, Enero - M.
    2. Bernard Dussuc & Sébastien Geindre, 2012. "Capital social, théorie des réseaux sociaux et recherche en PME : une revue de la littérature," Post-Print halshs-00747912, HAL.
    3. Traikova, Diana, 2013. "Determinants of non-farm entrepreneurial intentions in a transitional context: Evidence from rural Bulgaria," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 72, number 72.
    4. Traikova, Diana & Mollers, Judith & Buchenrieder, Gertrud, 2012. "How Farmers Become Entrepreneurs - Prenatal Diagnostic of Rural Firms in Bulgaria," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126816, International Association of Agricultural Economists.

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