National cultural values, social capital and micro-enterprise success Online publication date: Wed, 27-Jan-2010
by Jasmine Tata, Sameer Prasad
International Journal of Business Environment (IJBE), Vol. 3, No. 1, 2010
Abstract: The success or failure of a micro-enterprise can be influenced by the social capital of the micro-entrepreneur, as well as by the societal and cultural milieu. Social capital refers to the aggregate sum of actual and potential resources derived from the micro-entrepreneur's networks of relationships. Because variations in cultural values across societies can result in configurations of social capital and networking styles that differ from each other, socio-cultural differences can differentially influence micro-enterprise success. This paper presents a conceptual model that examines the influence of a macro-level environmental variable (national cultural values) and a micro-level individual variable (social capital) on the collaborative exchange process and on micro-enterprise success. The model proposes that there may be differences in the way that micro-entrepreneurs across countries accumulate social capital, and in their motivation and opportunity to engage in collaborative exchange.
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