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Entrepreneurship, Social Capital and Community Development: The case of Israeli Kibbutz

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  • Heilbrunn, Sibylle

Abstract

Globalization, industrialization and structural changes in traditional rural employment patterns have caused rural communities such as the Israeli Kibbutz to search for development strategies in order to survive. Self development constitutes one possible approach to community development. It nurtures local entrepreneurial activities and relies basically on local resources in order to create new jobs and economic activities. These local activities of entrepreneurship generate variety and leverage resources and can therefore foster social capital development and contribute to the community's capacity. Community development requires a mix of resources including natural capital, produced economic capital, human capital and institutional capital. Social capital is the glue that holds them together, a network of social relations based upon norms of trust and reciprocity leading to outcomes of mutual benefits. Thus, social capital reflects the ability of community members to participate, cooperate, organize and interact. Since many rural communities such as the kibbutz are undergoing processes of crisis and change, innovative initiatives potentially promoting economic independence of individuals and development of the community are of major importance. Rather than assuming that entrepreneurship is primarily the outcome of social capital, this study focuses upon the interdependency of entrepreneurship and forms of capital required for community development.

Suggested Citation

  • Heilbrunn, Sibylle, 2005. "Entrepreneurship, Social Capital and Community Development: The case of Israeli Kibbutz," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 33(2), pages 1-16.
    • Handle: RePEc:ags:jlorco:45105
    DOI: 10.22004/ag.econ.45105
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    References listed on IDEAS

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    1. Tiessen, James H., 1997. "Individualism, collectivism, and entrepreneurship: A framework for international comparative research," Journal of Business Venturing, Elsevier, vol. 12(5), pages 367-384, September.
    2. Cavaye, Jim, 2001. "Rural Community Development - New Challenges and Enduring Dilemmas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 31(2), pages 1-16.
    3. Barbara Piazza-Georgi, 2002. "The role of human and social capital in growth: extending our understanding," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 26(4), pages 461-479, July.
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