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Growth Aspirations and Social Capital: Young Firms in a Post-Conflict Environment

Author

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  • Adnan Efendic
  • Tomasz Marek Mickiewicz
  • Anna Rebmann

    (UCL School of Slavonic and East European Studies)

Abstract

We explore the social determinants of growth aspirations of young firms’ owners and managers in a post-conflict economy. We focus on social capital, which we treat as a multi-dimensional phenomenon, studying not only the effect of owners’ and managers’ personal networks on growth aspirations, but also other facets that facilitate cooperation such as trust in institutions and generalised trust in people. We posit that that the generalised trust amplifies the beneficial effects of personal business networks, explaining how this conclusion diverges from earlier literature. We argue that in a post-conflict country, preservation of ethnic diversity is indicative of tolerance and low communication barriers and social capital appropriable for entrepreneurship. Our empirical counterpart and hypotheses testing rely on survey of young businesses in Bosnia and Herzegovina.

Suggested Citation

  • Adnan Efendic & Tomasz Marek Mickiewicz & Anna Rebmann, 2013. "Growth Aspirations and Social Capital: Young Firms in a Post-Conflict Environment," UCL SSEES Economics and Business working paper series 122, UCL School of Slavonic and East European Studies (SSEES).
  • Handle: RePEc:see:wpaper:2013:122
    as

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    File URL: http://discovery.ucl.ac.uk/1397257/4/SSEES_WP122_Efendic-Mickiewicz-Rebmann_Nov13.pdf
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    References listed on IDEAS

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    Cited by:

    1. Besnik A. Krasniqi & Muhamet Mustafa, 2016. "Small firm growth in a post-conflict environment: the role of human capital, institutional quality, and managerial capacities," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1165-1207, December.
    2. Efendic, Adnan & Pugh, Geoffrey T., 2017. "Ethnic diversity and economic performance: An empirical investigation using survey data," Economics Discussion Papers 2017-57, Kiel Institute for the World Economy (IfW).

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    Keywords

    social capital; Bosnia and Herzegovina;

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