Social Capital and Entrepreneurship: Impact of Trust and Social Interaction on Entrepreneurship Trial

Abstract

Social capital is an important factor in entrepreneurship in emerging economies as it allows for the recognition and use of opportunities. Although previous literature emphasizes social capital, the role of various dimensions concerning it in entrepreneurship remains underexplored. Moreover, the impact of these dimensions on the early stages of entrepreneurship requires further consideration. Thus, this study investigates the impact of social capital on the trial stage of entrepreneurship. Specifically, it examines the effect of trust and social interaction on entrepreneurial trial in an emerging economy- Türkiye. Based on a sample of Turkish firms, the results of the empirical analyses reveal that trust and social interaction have positive impacts on entrepreneurship trial. However, the interaction between trust and social interaction has a negative impact on entrepreneurship trial. This study advances research on entrepreneurship by considering the associations between the various aspects of social capital and entrepreneurial activities.