Toward a Theory of Social Capital in Entrepreneurship

Dana, L.-P., & Light, I.

Social capital sometimes enhances and sometimes obstructs entrepreneurship. Social capital encourages entrepreneurship when people can access essential resources via social networks, thus conserving their time and money. Membership in multiple social networks also enhances people‘s mental capability to perceive opportunity, additionally encouraging their entrepreneurship. Social capital‘s obstruction occurs when closed social networks exclude prospective entrepreneurs from essential resources, reward safety and mediocrities rather than risk and entrepreneurship, or impose mental conformity upon network participants. The ability of social networks swiftly to propagate information tends, however, to mitigate the obstructive features social capital sometimes imposes. Our discussion proceeds from a review of existing literature combined with fresh research from Alaska.



APA citation

  • Dana, L.-P., & Light, I. (2012). Toward a Theory of Social Capital in Entrepreneurship. International Journal of Social Sciences, I(1), 35–54.

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