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Growth Aspirations and Social Capital: Young Firms in a Post-Conflict Environment

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  • Adnan Efendic
  • Tomasz Marek Mickiewicz
  • Anna Rebmann

    (UCL School of Slavonic and East European Studies)

Abstract

We explore the social determinants of growth aspirations of young firms’ owners and managers in a post-conflict economy. We focus on social capital, which we treat as a multi-dimensional phenomenon, studying not only the effect of owners’ and managers’ personal networks on growth aspirations, but also other facets that facilitate cooperation such as trust in institutions and generalised trust in people. We posit that that the generalised trust amplifies the beneficial effects of personal business networks, explaining how this conclusion diverges from earlier literature. We argue that in a post-conflict country, preservation of ethnic diversity is indicative of tolerance and low communication barriers and social capital appropriable for entrepreneurship. Our empirical counterpart and hypotheses testing rely on survey of young businesses in Bosnia and Herzegovina.

Suggested Citation

  • Adnan Efendic & Tomasz Marek Mickiewicz & Anna Rebmann, 2013. "Growth Aspirations and Social Capital: Young Firms in a Post-Conflict Environment," UCL SSEES Economics and Business working paper series 122, UCL School of Slavonic and East European Studies (SSEES).
    • Handle: RePEc:see:wpaper:2013:122
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    Cited by:

    1. Adnan Efendic, 2016. "Emigration intentions in a post-conflict environment: evidence from Bosnia and Herzegovina," Post-Communist Economies, Taylor & Francis Journals, vol. 28(3), pages 335-352, July.
    2. Besnik A. Krasniqi & Muhamet Mustafa, 2016. "Small firm growth in a post-conflict environment: the role of human capital, institutional quality, and managerial capacities," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1165-1207, December.
    3. Williams Nick & Radevic Dragana & Gherhes Cristian & Vorley Tim, 2017. "The nature of corruption affecting entrepreneurship in transition economies: Some lessons from Montenegro," South East European Journal of Economics and Business, Sciendo, vol. 12(2), pages 20-34, December.
    4. Raquel Puente & María Antonia Cervilla & Carlos Giovanni González & Nunzia Auletta, 2017. "Determinants of the growth aspiration: a quantitative study of Venezuelan entrepreneurs," Small Business Economics, Springer, vol. 48(3), pages 699-726, March.
    5. Nick Williams & Adnan Efendic, 2019. "Internal displacement and external migration in a post-conflict economy: Perceptions of institutions among migrant entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 17(4), pages 558-585, December.
    6. Efendic, Adnan & Pugh, Geoff, 2018. "The effect of ethnic diversity on income: An empirical investigation using survey data from a post-conflict environment," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 12, pages 1-34.
    7. Efendic, Adnan & Pugh, Geoffrey T., 2017. "Ethnic diversity and economic performance: An empirical investigation using survey data," Economics Discussion Papers 2017-57, Kiel Institute for the World Economy (IfW Kiel).
    8. Pasovic Edin & Efendic Adnan S., 2018. "Informal Economy in Bosnia and Herzegovina – An Empirical Investigation," South East European Journal of Economics and Business, Sciendo, vol. 13(2), pages 112-125, December.
    9. Tran, Hien Thu, 2019. "Institutional quality and market selection in the transition to market economy," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    10. Aralica Zoran & Svilokos Tonci & Bacic Katarina, 2018. "Institutions and Firms’ Performance in Transition Countries: The Case of Selected Cesee Countries," South East European Journal of Economics and Business, Sciendo, vol. 13(1), pages 68-80, June.

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