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The effects of social capital on the performance of newly founded businesses in Slovenia

Author

Listed:
  • Ana KuntariÄ
  • Erich J. Schwarz
  • Robert J. Breitenecker
  • Malgorzata A. Wdowiak

Abstract

The paper explores the impact of entrepreneur's social capital on new venture performance. We adopt a multidimensionality approach of social capital by examining the influence of the different dimensions (structural, relational, cognitive and resource dimension) on new venture performance. In particular, we focus on ventures that are within their first year of operation. The data consists of 300 newly founded businesses. Hypotheses were tested with multiple regression analysis. The results of our study reveal that Slovenian start-ups mostly rely on their strong ties when starting their business. Furthermore, the performance is significantly influenced by the approval of the personal network, representing the cognitive dimension of social capital.

Suggested Citation

  • Ana KuntariÄ & Erich J. Schwarz & Robert J. Breitenecker & Malgorzata A. Wdowiak, 2012. "The effects of social capital on the performance of newly founded businesses in Slovenia," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 15(1), pages 100-115.
    • Handle: RePEc:ids:ijesbu:v:15:y:2012:i:1:p:100-115
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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.

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