The effects of social capital on the performance of newly founded businesses in Slovenia
by Ana Kuntarič; Erich J. Schwarz; Robert J. Breitenecker; Malgorzata A. Wdowiak
International Journal of Entrepreneurship and Small Business (IJESB), Vol. 15, No. 1, 2012

Abstract: The paper explores the impact of entrepreneur's social capital on new venture performance. We adopt a multidimensionality approach of social capital by examining the influence of the different dimensions (structural, relational, cognitive and resource dimension) on new venture performance. In particular, we focus on ventures that are within their first year of operation. The data consists of 300 newly founded businesses. Hypotheses were tested with multiple regression analysis. The results of our study reveal that Slovenian start-ups mostly rely on their strong ties when starting their business. Furthermore, the performance is significantly influenced by the approval of the personal network, representing the cognitive dimension of social capital.

Online publication date: Thu, 14-Aug-2014

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