The link between entrepreneurship and economic growth has been established in the literature. The potency of an entrepreneurship ecosystem, driven by the role of financial capital, is now a determinant of an economy’s success. The People’s Republic of China has been successful on this expanse. However, in this conceptual study, we explicate the role social capital play in entrepreneurial venture growth. By conducting a survey on Chinese entrepreneurs, cross tabulating their categorical responses and conducting contingency table analysis, we get to illustrate how they see social capital as a facilitating factor of their entrepreneurial success. Results revealed that Chinese entrepreneurs believe that together with financial capital and government assistance, having more social capital is critical in developing start-ups, attracting more investments and acquiring a bigger market share. However, a premium is placed on technical skills and enterprise planning than personal charisma. Results were validated and augmented earlier results on Chinese perceptions on what makes entrepreneurial ventures successful.
AcsZ. J. (2006). How is entrepreneurship good for economic growth?Innovations, 1(1), 97–107. https://www.mitpress journals.org/doi/pdf/10.1162/itgg.2006.1.1.97.
2.
AdlerP. S., & KwonS. W. (2002). Social capital: Prospects for a new concept. Academy of Management Review, 27(1), 17–40. https://www.jstor.org/stable/4134367.
3.
AkçomakI. S., & WeelB. (2009). Social capital, innovation and growth: Evidence from Europe. European Economic Review, 53(5),544–567. https://doi.org/10.1016/j.euroe corev.2008.10.001.
4.
AldrichH., & ZimmerC. (1986). Entrepreneurship through social networks. In SextonD. L., & SmilorR. W. (Eds.), The art and science of entrepreneurship (pp. 3–23). Ballinger Publishing.
5.
AllawadiS. C. (2007). Entrepreneurship challenges in the 21st century. Indian Institute of Materials Management.
6.
AuK., & KwanH. K. (2009). Start-up capital and Chinese entrepreneurs: The role of family. Entrepreneurship Theory and Practice, 33(4), 889–908. https://doi.org/10.1111%2Fj.1540-6520.2009.00331.x.
7.
AudretschD. B., KeilbachM. C., & LehmannE. E. (2006). Entrepreneurship and economic growth. Oxford University Press.
8.
BaumolW. J. (1986). Entrepreneurship: Productive, unproductive, and destructive. Journal of Business Venturing, 11, 3–22. https://www.jstor.org/stable/2937617.
9.
BaumolW. J. (2010). The microtheory of innovative entrepreneurship. Princeton University Press.
10.
BaumolW. J., LitanR. E., & SchrammC. J. (2007). Good capitalism, bad capitalism, and the economics of growth and prosperity. Yale University Press.
11.
BirchD. G. (1979). The job generation process. MIT Program on Neighborhood and Regional Change.
12.
BerlingJ. A. (1982). Confucianism. Focus on Asian Studies, 2(1), 5–7. https://www2.kenyon.edu/Depts/Religion/Fac/Adler/Reln270/Berling-Confucianism.htm
13.
BischoffK. (2019). A study on the perceived strength of sustainable entrepreneurial ecosystems on the dimensions of stakeholder theory and culture. Small Business Economics, 56, 1121–1140. https://doi.org/10.1007/s11187-019-00257-3
14.
BogoroS. E. (2015). Entrepreneurship for development. Kaduna State University.
15.
BourdieuP. (1986). The forms of capital. In RichardsonJ. G. (Ed.), Handbook of theory and research for the sociology of education (pp. 241–258). Greenwood.
16.
BrüderlJ., & PreisendörferP. (1998). Network support and the success of newly founded businesses. Small Business Economics, 10, 213–225. https://doi.org/10.1023/A:1007997102930
17.
BurtR. S. (1992). Structural holes. Harvard University Press.
18.
ChandraA., & FealeyT. (2009). Business incubation in the United States, China and Brazil: A comparison of role of government, incubator funding and financial services. International Journal of Entrepreneurship, 13(S1), 67–86. https://search.proquest.com/openview/a0b085662d29c5c71005ea917025678a/1?pq-origsite=gscholar&cbl=29727
19.
ChandraY., & WongL. (2016). Social entrepreneurship in the Greater China Regions: Policy and cases. Routledge.
20.
ClarkK. D., & CollinsC. J. (2010). Strategic human resource management of top management team social networks: Controlling executive relationships for enhanced organisational advantage. In BournoisF., Duval-HamelJ., RoussillonS., & ScaringellaJ. L. (Eds.), Handbook of top management teams (pp. 110–117). Palgrave Macmillan. https://doi.org/10.1057/9780230305335_12
21.
ColemanJ. S. (1988). Social capital in the creation of human capital. American Journal of Sociology, 94, 95–120. https://www.jstor.org/stable/2780243
22.
De FranzoS.E. (n.d.). The benefits of cross tabulation in survey analysis. Snap Surveys. https://www.snapsurveys.com/blog/benefits-cross-tabulations-survey-analysis/
23.
DeMersJ. (2015, September). 5 jobs every entrepreneurs should work before building a business. Entrepreneur. https://www.entrepreneur.com/article/250297
24.
DengZ. L., JeanR. B., & SinkovicsR. R. (2012). Determinants of international innovation performance in Chinese manufacturing firms: An integrated perspective. Asian Business and Management, 11(1), 31–55. https://doi.org/10.1057/abm.2011.26.
25.
DesaiS. (2009). Measuring entrepreneurship in developing countries [Research Paper No. 2009/10]. United Nations University-World Institute for Development Economics Research.
26.
DeTienneD. R., & ChandlerG. N. (2004). Opportunity identification and its role in the entrepreneurial classroom: A pedagogical approach and empirical test. Academy of Management Learning & Education, 3(3), 242–257. https://www.jstor.org/stable/40214114
27.
DruckerP. F. (1984, January). Our entrepreneurial economy. Harvard Business Review. https://hbr.org/1984/01/our-entrepreneurial-economy
28.
DudovskiyJ. (2018). The ultimate guide to writing a dissertation in business studies: A step-by-step assistance. https://research-methodology.net/about-us/ebook/
29.
EklundJ., LevrattoN., & RamelloG. B. (2020). Entrepreneurship and failure: Two sides of the same coin?Small Business Economics, 54, 373–382. https://doi.org/10.1007/s11187-018-0039-z
30.
EthridgeD. E. (2004). Research methodology in applied economics. John Wiley & Sons.
31.
FineB. (2010). Theories of social capital: Researchers behaving badly. Political Economy and Development. Pluto Press. https://www.econstor.eu/bitstream/10419/182431/1/642727.pdf
32.
FlorinJ., LubatkinM., & SchulzeW. (2003). A social capital model of high growth ventures. The Academy of Management Journal, 46(3), 374–384. https://www.jstor.org/stable/30040630
33.
FoxW., & BayatM. S. (2007). A guide to managing research. Juta Publications.
34.
GarnautR., SongS., & FangC. (Eds.). (2018). China’s 40 years reform and development: 1978–2018. Australian National University Press.
35.
GozunB. C., & RiveraJ. P. R. (2016). Characterizing the Filipino entrepreneurial propensity using the Global Entrepreneurship Monitor data. International Journal of SME and Business Sustainability, 2(1), 25–49. http://www.usakti-cisbucs.com/index.php/archives/volume-02/v02n01nov2016/66-characterizing-the-filipino-entrepreneurial-propensity-using-the-global-entrepreneurship-monitor-data
36.
GozunB. C., & RiveraJ. P. R. (2017). Role of education in encouraging youth employment and entrepreneurship. DLSU Business & Economics Review, 27(1), 72–88. https://www.dlsu.edu.ph/wp-content/uploads/2019/03/4gozun-072617.pdf
37.
GranovetterM. (1983). The strength of weak ties: A network theory revisited. Sociological Theory, 1, 201–233. https://www.jstor.org/stable/202051
38.
HambrickD., CannellaA. A., & PettigrewA. (2001). Upper echelons: Donald Hambrick on executives and strategy [and commentary]. The Academy of Management Executive, 15(3), 36–44. https://www.jstor.org/stable/4165757
39.
HanifanL. J. (1916). The rural school community center. Annals of the American Academy of Political and Social Science, 67, 130–138. http://www.jstor.com/stable/1013498
40.
HoG. W. K. (2016). Examining perceptions and attitudes: A review of Likert-type scales versus Q-methodology. Western Journal of Nursing Research, 39(5), 674–689. https://doi.org/10.1177%2F0193945916661302
41.
HuangT. (2019, June). Government-guided funds in China: Financing vehicles for state industrial policy. Peterson Institute for International Economics. https://www.piie.com/blogs/china-economic-watch/government-guided-funds-china-financing-vehicles-state-industrial-policy
42.
JiangC., & ZhangS. (2006). The relationship between social capital and corporate entrepreneurship and performance: The intermediary role of organizational learning - empirical research on emerging enterprises in Jiangsu and Guangdong. Management World, 10, 90–99.
43.
JohnsonW. (2015, May). Why today’s teens are more entrepreneurial than their parents. Harvard Business Review. https://hbr.org/2015/05/why-todays-teens-are-more-entrepreneurial-than-their-parents
44.
KhanR. R. (2015). Entrepreneurship management (Business Management Paper V). Institute of Distance Education, University of Mumbai.
45.
KobayashiS., BaoboJ., & SanoJ. (1999, September). The “Three Reforms” in China: Progress and outlook. https://www.jri.co.jp/english/periodical/rim/1999/RIMe199904threereforms/
46.
KritikosA. S. (2014, May). Entrepreneurs and their impact on jobs and economic growth. IZA World of Labor. http://dx.doi.org/10.15185/izawol.8
47.
KurodaM. (2007). Analysis of contingency tables. In KurodaM. (Ed.), Statistical Methods for Biostatistics and Related Fields (pp. 105–125). Springer. https://doi.org/10.1007/978-3-540-32691-5_6
48.
KwonS. W., & AdlerP. S. (2014). Social capital: Maturation of a field of research. Academy of Management Review, 39(4), 412–422. https://doi.org/10.5465/amr.2014.0210
49.
LarsonA., & StarrJ. A. (1993). A network model of organization formation. Entrepreneurship Theory and Practice, 17(2), 5–15. https://doi.org/10.1177%2F104225879301700201
50.
LiaoJ. (2020). The rise of the service sector in China. China Economic Review, 59. https://doi.org/10.1016/j.chieco.2019.101385
51.
LindD. A., MarchalW. G., & WathenS. A. (2006). Basic statistics for business & economics (5th ed.). McGraw-Hill Education.
52.
LuoY. (2003). Industrial dynamics and managerial networking in an emerging market: The case of China. Strategic Management Journal, 24(13), 1315–1327. https://doi.org/10.1002/smj.363
53.
MaskellP. (2009). Social capital, innovation, and competitiveness. In BaronS., FieldJ., & SchullerT. (Eds.), Social capital: critical perspectives (pp. 111–123). Oxford University Press. https://research.cbs.dk/en/publications/social-capital-innovation-and-competitiveness
54.
McMullenJ. S., & WarnickB. J. (2016). Should we require every new venture to be a hybrid organization?Journal of Management Studies, 53(4), 630–662. https://doi.org/10.1111/joms.12150
55.
MeiB., & BrownG. T. L. (2018). Conducting online surveys in China. Social Science Computer Review, 36(6), 721–734. https://doi.org/10.1177%2F0894439317729340
56.
MoscosoD. (2017, February). Is social capital the secret ingredient for entrepreneurial success. Economonitor. https://www.thestreet.com/economonitor/emerging-markets/is-social-capital-the-secret-ingredient-for-entrepreneurial-success
57.
MurphyL., HugginsR., & ThompsonP. (2016). Social capital and innovation: A comparative analysis of regional policies. Environment and Planning C: Government and Policy, 34(6), 1025–1057. https://doi.org/10.1177%2F0263774X15597448
58.
NahapietJ., & GhoshalS. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23(2), 246–266. https://www.jstor.org/stable/259373
59.
Organisation for Economic Co-operation and Development (OECD) (2001). Definition and selection of competencies: Theoretical and conceptual foundation. OECD. http://www.oecd.org/education/skills-beyond-school/41529556.pdf
60.
Organisation for Economic Co-operation and Development (OECD) (2002). Benchmarking: Fostering firm creation and entrepreneurship. OECD Directorate for Science, Technology and Industry.
61.
Organisation for Economic Co-operation and Development (OECD) (2004). Promoting entrepreneurship and innovative SMEs in a global economy: Towards a more responsible and inclusive globalisation. Second OECD Conference of Ministers Responsible for Small and Medium-sized Enterprises (SMEs). OECD. https://www.oecd.org/cfe/smes/31919590.pdf
62.
OstgaardT. A., & BirleyS. (1994). Personal networks and firm competitive strategy – A strategic or coincidental match?Journal of Business Venturing, 9(4), 281–305. https://doi.org/10.1016/0883-9026(94)90009-4
63.
PapulováZ., & PapulaJ. (2015). Entrepreneurship in the eyes of the young generation. Procedia Economics and Finance, 34, 514–520. https://doi.org/10.1016/S2212-5671(15)01662-7
64.
PirichA., KnuckeyS., & CampbellJ. (2001). An interface between entrepreneurship and innovation: New Zealand SMEs perspective. http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.564.8431&rep=rep1&type=pdf
65.
PodsakoffP. M., & OrganD. W. (1986). Self-reports in organizational research: Problems and prospects. Journal of Management, 12(4), 531–544. https://doi.org/10.1177%2F014920638601200408
66.
PortesA. (1998). Social capital: Its origins and applications in modern sociology. Annual Review of Sociology, 24, 1–24. https://www.jstor.org/stable/223472
67.
PutnamR. D. (2001, December). The strange disappearance of civic America. The American Prospect. https://prospect.org/infrastructure/strange-disappearance-civic-america/
68.
RidgewayC. (2001). Joining and functioning in groups, self-concept and emotion management. In RychenD. S. & SalganikL. H. (Eds.), Defining and selecting key competencies (pp. 205–211). Hogrefe & Huber.
69.
RiveraJ. P. R., & GozunB. C. (2019). Estimating the effect of government programs on youth entrepreneurship in the Philippines. DLSU Business & Economics Review, 28(3), 112–120. https://www.dlsu.edu.ph/wp-content/uploads/2019/10/11-rivera-gozum-041519.pdf
70.
Safaee ChalkasraL. S. P., RiveraJ. P. R., & BasuilD. A. T. (2019). A review of theoretical perspectives on CSR among family enterprises. VISION The Journal of Business Perspective, 23(3), 225–233. https://doi.org/10. 1177%2F0972262919860966
71.
SamuelssonM., & DavidssonP. (2009). Does venture opportunity variation matter? Investigating systematic process differences between innovative and imitative new ventures. Small Business Economics, 33, 229–255. https://doi.org/10.1007/s11187-007-9093-7
72.
SanyangS. E., & HuangW. C. (2010). Entrepreneurship and economic development: The EMPRETEC showcase. International Entrepreneurship and Management Journal, 6, 317–329. https://doi.org/10.1007/s11365-008-0106-z
73.
SchumpeterJ. A. (1911). The theory of economic development: An inquiry into profits, capital, credit, interest and the business cycle (1934 translation). Harvard University Press.
74.
SchumpeterJ. A. (1942). Capitalism, socialism, and democracy (3rd ed.). Harper and Bros.
75.
ShaneS. (2004). A general theory of entrepreneurship: The individual-opportunity nexus. Edward Elgar Publishing.
76.
ShaneS., & VenkataramanS. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217–226. https://www.jstor.org/stable/259271
77.
ShenZ., SirajA., JiangH., ZhuY., & LiJ. (2020). Chinese-style innovation and its international repercussions in the new economic times. Sustainability, 12(1859), http://dx.doi.org/10.3390/su12051859
78.
ShubhanwitaS. (n.d.). Role of entrepreneurs in economic development. Economics Discussion. https://www.economicsdiscussion.net/entrepreneurs/role-of-entrepreneurs-in-economic-development/31496
79.
TemkinB. (2009). Informal self-employment in developing countries: Entrepreneurship or survivalist strategy? Some implications for public policy. Analyses of Social Issues and Public Policy, 9(1), 135–156. https://doi.org/10.1111/j.1530-2415.2009.01174.x
80.
TodaroM. P., & SmithS. C. (2015). Economic development (12th ed.). Pearson South Asia Pte. Ltd.
81.
United Nations Conference on Trade and Development (UNCTAD) (2004, May). Entrepreneurship and economic development: The EMPRETEC showcase. https://unctad.org/en/docs/webiteteb20043_en.pdf
82.
VeliyathR., StiversB., HairJ. F., JoyceT., & SarstedtM. (2012). Developing business acumen in Chinese business school graduates. Journal of Emerging Knowledge on Emerging Markers, 4. https://works.bepress.com/joe_hair/4/
83.
WeisulK. (2017). Why social capital is key to entrepreneurs’ success. Inc. https://www.inc.com/kimberly-weisul/why-social-capital-key-entrepreneurs-success.html
84.
WoolcockM. (2010). The rise and routinization of social capital, 1988–2008. Annual Review of Political Science, 13, 469–487. https://doi.org/10.1146/annurev.polisci.031108.094151
85.
XueE., & LiJ. (2019). The Chinese education policy landscape: A concept-added policy chain analysis. Springer.
86.
ZahraS. A., & WrightM. (2016). Understanding the social role of entrepreneurship. Journal of Management Studies, 53(4), 610–629. https://doi.org/10.1111/joms.12149
87.
ZhangH., HanR., WangL., & LinR. (2019). Social capital in China: A systematic literature review. Asian Business & Management. https://doi.org/10.1057/s41291-019-00081-3
