Social Capital, Trust and Entrepreneurial Productivity

Social Capital, Trust and Entrepreneurial Productivity

With an incomplete panel data from 63 countries over 25 years this paper finds that the average number of employees per entrepreneur increases with the countries' levels of social capital. This evidence is in line with predictions from occupational choice models, where the equilibrium average s...

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Veröffentlicht in:The Manchester school 2019-09, Vol.87 (5), p.607-639
Hauptverfasser: Salas‐Fumás, Vicente, Sanchez‐Asin, J. Javier
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Sprache:eng
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Decision making models
Delegation
Entrepreneurs
Occupational choice
Panel data
Power
Productivity
Social capital
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Sanchez‐Asin, J. Javier
description With an incomplete panel data from 63 countries over 25 years this paper finds that the average number of employees per entrepreneur increases with the countries' levels of social capital. This evidence is in line with predictions from occupational choice models, where the equilibrium average size of firms increases with lower internal costs of growth, when social capital supported trust reduces these costs facilitating the delegation of decision power in firms. We also find that the influence of social capital in self‐employed rates differs if the self‐employed have employees or not so entrepreneurs should be treated as a heterogeneous group.
doi_str_mv 10.1111/manc.12259
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source EBSCOhost Business Source Complete; Wiley Online Library All Journals
subjects Decision making models
Delegation
Entrepreneurs
Occupational choice
Panel data
Power
Productivity
Social capital
title Social Capital, Trust and Entrepreneurial Productivity
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