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Social capital, networks, trust and immigrant entrepreneurship: a cross‐country analysis

Social capital, networks, trust and immigrant entrepreneurship: a cross‐country analysis Purpose – This study is devoted to the empirical assessment of the macro‐level impact of social capital on immigrant entrepreneurship (the general levels of immigrant entrepreneurship, as well as high‐value added immigrant entrepreneurship). Design/methodology/approach – The paper applies multiple regression analysis to the data on immigrant entrepreneurship and high‐value added immigrant entrepreneurship provided by OECD. The measures of the independent variables (the components of social capital) are based on World Value Survey. Findings – The results reveal that social capital does play a significant role in high‐value added immigrant entrepreneurship in particular and immigrant entrepreneurship in general. With strong statistical significance, three social capital factors – networking, interpersonal trust, and institutional trust – provide an explanation for variations in immigrant entrepreneurship across countries. Originality/value – Although the literature has long pointed out the importance of social capital as a determinant of economic activity, entrepreneurship researchers have focused much attention on the impact of personal, economic, and politico‐administrative factors while leaving social capital factors largely unexamined. Thus, study offers a systematic analysis of the effects of social capital on immigrant entrepreneurship and high‐value added immigrant entrepreneurship at a macro level and discusses policy‐making implications. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Enterprising Communities: People and Places in the Global Economy Emerald Publishing

Social capital, networks, trust and immigrant entrepreneurship: a cross‐country analysis

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Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
1750-6204
DOI
10.1108/17506201311325779
Publisher site
See Article on Publisher Site

Abstract

Purpose – This study is devoted to the empirical assessment of the macro‐level impact of social capital on immigrant entrepreneurship (the general levels of immigrant entrepreneurship, as well as high‐value added immigrant entrepreneurship). Design/methodology/approach – The paper applies multiple regression analysis to the data on immigrant entrepreneurship and high‐value added immigrant entrepreneurship provided by OECD. The measures of the independent variables (the components of social capital) are based on World Value Survey. Findings – The results reveal that social capital does play a significant role in high‐value added immigrant entrepreneurship in particular and immigrant entrepreneurship in general. With strong statistical significance, three social capital factors – networking, interpersonal trust, and institutional trust – provide an explanation for variations in immigrant entrepreneurship across countries. Originality/value – Although the literature has long pointed out the importance of social capital as a determinant of economic activity, entrepreneurship researchers have focused much attention on the impact of personal, economic, and politico‐administrative factors while leaving social capital factors largely unexamined. Thus, study offers a systematic analysis of the effects of social capital on immigrant entrepreneurship and high‐value added immigrant entrepreneurship at a macro level and discusses policy‐making implications.

Journal

Journal of Enterprising Communities: People and Places in the Global EconomyEmerald Publishing

Published: May 24, 2013

Keywords: Immigrants; Social capital; Networking; Trust; Immigrant entrepreneurship; High‐value added immigrant entrepreneurship

References