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The Changing Role of Social Capital During the Venture Creation Process: A Multilevel Study

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  • Johannes Kleinhempel
  • Sjoerd Beugelsdijk
  • Mariko J. Klasing

Abstract

We assess how social capital relates to individuals’ initial interest in becoming an entrepreneur, formally setting up a venture, and subsequent survival of the venture. Conceptualizing and measuring entrepreneurship as a sequential process inferred from cross-sectional data for 22,878 individuals living in 110 regions across 22 European countries, we find that regional social capital is relevant for formally setting up a venture, but it is not associated with initial interest, nor with venture survival after establishment. By assuming variability and not uniformity in how social capital relates to entrepreneurship, we gain a better understanding of the contextual determinants of the venture creation process.

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  • Johannes Kleinhempel & Sjoerd Beugelsdijk & Mariko J. Klasing, 2022. "The Changing Role of Social Capital During the Venture Creation Process: A Multilevel Study," Entrepreneurship Theory and Practice, , vol. 46(2), pages 297-330, March.
    • Handle: RePEc:sae:entthe:v:46:y:2022:i:2:p:297-330
    DOI: 10.1177/1042258720913022
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    1. Kleinhempel, Johannes & Klasing, Mariko & Beugelsdijk, Sjoerd, 2022. "Cultural Roots of Entrepreneurship," MPRA Paper 115942, University Library of Munich, Germany.

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