Abstract
This article investigates the relationship between social capital and entrepreneurial activity in rural communities of Central-Eastern Europe. Through survey research and case studies in Romanian and Hungarian villages, the study examines how social networks, trust, and community norms facilitate or constrain entrepreneurial initiative.
Key Findings
- Bonding social capital (strong ties within groups) provides important support for new entrepreneurs but can also constrain innovation
- Bridging social capital (weak ties across groups) is more important for accessing external resources and market information
- Trust in institutions correlates positively with formal entrepreneurial activity
- Cooperative entrepreneurship draws on community social capital in distinctive ways
Methodology
Mixed-methods research combining a survey of 400 rural households with in-depth case studies of 20 rural entrepreneurs in Romania and Hungary.
Implications
The findings suggest that rural development programmes should invest in building diverse forms of social capital alongside conventional enterprise support, recognising that entrepreneurship is fundamentally a social process embedded in community relationships.
