Social capital and entrepreneurship in a regional context

Abstract

The article is focused on the connection between the willingness to do business and individual capital in the context of the Ústí Region as an example of a disadvantaged region. Social capital is divided into bonding capital, related with family and friendship relations, and mobilizing capital, related to the instrumental solution of situations with the help of social relations. The article has used a secondary analysis of data gained thanks to a questionnaire survey, which was representative of inhabitants of the Ústí Region. The results showed that the willingness to do business was connected with mobilizing social capital, while bonding social capital did not play any role. The analysis, however, also includes other variables as the role of the social capital differs, for instance, regionally: people with a higher education are more willing to do business, and the same also applies to people declaring a willingness to leave the region. The complexity of the variables related to the low level of willingness to do business cannot be reduced to mobilizing social capital. However, it is also necessary to reflect its significant role.

The Collaboration of Social Entrepreneurship and Institution for Sustainable Regional Development Security

“…According to Fuchsová, Laštovková, & Jánská (2019), the low attractiveness of regions for foreign direct investment weakens business activities and stimulates social entrepreneurship growth, though not proven. This research confirms that the low attractiveness of foreign direct investment regions is attributed to low regional infrastructure.…”