The stairway to Heaven? The effective use of social capital in new venture creation for a rural business

Purpose The purpose of this paper is to examine the relationship of social capital with new venture creation, and whether self-efficacy plays a role in mediating the association between social capital and new venture creation. Design/methodology/approach Data were collected from 375 entrepreneurs through cross-sectional survey in India. The study used partial least square path modeling to assess the relationships among the variables. Findings Findings reveal that social capital is positively related to new venture creation. The association of social capital and new venture creation is fully mediated by entrepreneurs’ self-efficacy. Originality/value The role of social capital in the success of new venture creations through self-efficacy is useful to the potential entrepreneurs and people who facilitate new venture creation in Indian context.

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Community Social Capital and the Venture Gestation Process

The Oxford Handbook of Entrepreneurship and Collaboration ◽

10.1093/oxfordhb/9780190633899.013.28 ◽

2019 ◽

pp. 175-200

Author(s):

Siddharth Vedula ◽

Casey J. Frid

Keyword(s):

Social Capital ◽

Research Agenda ◽

New Venture ◽

Entrepreneurial Activity ◽

New Venture Creation ◽

Venture Creation ◽

Nascent Entrepreneurs ◽

Nascent Entrepreneurship ◽

Growing Body ◽

Future Work

Community social capital is increasingly recognized as an important regional resource for spurring entrepreneurial activity. A nascent but growing body of work has begun to link community social capital to entrepreneurship, focusing largely on outcomes such as rates of new venture creation. This chapter emphasizes ways in which community social capital can impact nascent entrepreneurship—namely, the activities founders undertake during the gestation phase before a new venture is created. It examines whether the types of activities undertaken by nascent entrepreneurs vary according to the prevalence (or absence) of community social capital within a region, and concludes with a research agenda for future work in this domain.

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The effect of social capital in new venture creation: the Cambridge high-technology cluster

Strategic Change ◽

10.1002/jsc.718 ◽

2005 ◽

Vol 14 (3) ◽

pp. 165-177 ◽

Cited By ~ 47

Author(s):

Yin M. Myint ◽

Shailendra Vyakarnam ◽

Mary J. New

Keyword(s):

Social Capital ◽

High Technology ◽

New Venture ◽

New Venture Creation ◽

Venture Creation

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The translation of entrepreneurial intention into start-up behaviour: The moderating role of regional social capital

International Small Business Journal Researching Entrepreneurship ◽

10.1177/0266242619831170 ◽

2019 ◽

Vol 37 (5) ◽

pp. 473-501 ◽

Cited By ~ 9

Author(s):

Jan Weiss ◽

Tatiana Anisimova ◽

Galina Shirokova

Keyword(s):

Social Capital ◽

Cultural Diversity ◽

Social Trust ◽

Entrepreneurial Intention ◽

Entrepreneurial Intentions ◽

New Venture ◽

New Venture Creation ◽

Venture Creation ◽

Moderating Role

This article examines the moderating role of regional social capital in the intention–behaviour link in entrepreneurship. We investigate to what extent the regional social capital context in which aspiring entrepreneurs are embedded strengthens or weakens the translation of individual entrepreneurial intentions into new venture creation activities. Our results suggest that the intention–behaviour link is weakened by cognitive regional social capital in the form of regional hierarchy values and strengthened by structural regional capital in the form of regional cultural diversity and regional breadth of associational activity, as well as by relational regional social capital in the form of high levels of regional generalised trust. Our findings suggest that to support new venture creation activity, there is a need to grow regional social capital via the enhancement of social trust, associational activities and regional cultural diversity – and at the same time decrease hierarchical social structures within regions.

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Pengaruh Modal Sosial Terhadap Penciptaan Usaha Baru Yang Dimediasi Oleh Efikasi Diri Pada Mahasiswa Jurusan Manajemen Fakultas Ekonomi Dan Bisnis Universitas Tarumanagara

Jurnal Manajerial Dan Kewirausahaan ◽

10.24912/jmk.v2i2.7945 ◽

2020 ◽

Vol 2 (2) ◽

pp. 510

Author(s):

Jordrius Pangestu ◽

Andi Wijaya

Keyword(s):

Social Capital ◽

Self Efficacy ◽

Sampling Method ◽

Partial Least Square ◽

Least Square ◽

New Venture ◽

New Venture Creation ◽

Venture Creation ◽

Private Business ◽

Purposive Sampling

This study was conducted with the aim of finding out whether there is an effect of social capital on the new venture creation with self-efficacy as a mediating variable. The subjects of this study were 40 students majoring in management at the Tarumanagara University Faculty of Economics and Business who have a private business with a business age under 5 years. The sampling method is done by purposive sampling method. This study uses data analysis with the Partial Least Square (PLS) approach in the form of the Smart-PLS application version 3.0. The findings show that social capital does not significantly affect new venture creation. However, there is an indirect effect of social capital on new venture creation through self-efficacy as a mediating variable. Penelitian ini dilakukan dengan tujuan untuk mengetahui apakah terdapat pengaruh modal sosial terhadap penciptaan usaha baru dengan efikasi diri sebagai variabel mediasi. Subyek penelitian ini adalah 40 mahasiswa jurusan manajemen Fakultas Ekonomi dan Bisnis Universitas Tarumanagara yang memiliki bisnis pribadi dengan usia bisnis dibawah 5 tahun. Metode pengambilan sampel dilakukan dengan metode purposive sampling. Penelitian ini menggunakan analisis data dengan pendekatan Partial Least Square (PLS) berupa aplikasi Smart-PLS versi 3.0. Temuan menunjukkan bahwa modal sosial tidak berpengaruh secara signifikan terhadap penciptaan usaha baru. Namun, terdapat pengaruh tidak langsung modal sosial terhadap penciptaan usaha baru lewat efikasi diri sebagai variabel mediasi.

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