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

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.

Citation

Turkina, E. and Thi Thanh Thai, M. (2013), "Social capital, networks, trust and immigrant entrepreneurship: a cross‐country analysis", Journal of Enterprising Communities: People and Places in the Global Economy, Vol. 7 No. 2, pp. 108-124. https://doi.org/10.1108/17506201311325779