Growth Aspirations and Social Capital: Young Firms in a Post-Conflict Environment

Adnan Efendic, Tomasz Mickiewicz and Anna Rebmann
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Anna Rebmann: UCL School of Slavonic and East European Studies

No 122, UCL SSEES Economics and Business working paper series from UCL School of Slavonic and East European Studies (SSEES)

Abstract: We explore the social determinants of growth aspirations of young firms’ owners and managers in a post-conflict economy. We focus on social capital, which we treat as a multi-dimensional phenomenon, studying not only the effect of owners’ and managers’ personal networks on growth aspirations, but also other facets that facilitate cooperation such as trust in institutions and generalised trust in people. We posit that that the generalised trust amplifies the beneficial effects of personal business networks, explaining how this conclusion diverges from earlier literature. We argue that in a post-conflict country, preservation of ethnic diversity is indicative of tolerance and low communication barriers and social capital appropriable for entrepreneurship. Our empirical counterpart and hypotheses testing rely on survey of young businesses in Bosnia and Herzegovina.

Keywords: social capital; Bosnia and Herzegovina (search for similar items in EconPapers)
Date: 2013-04
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Citations: View citations in EconPapers (10)

Published in International Small Business Journal.

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Persistent link: https://EconPapers.repec.org/RePEc:see:wpaper:2013:122

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