The Impact of Local Social Capital on Different Types of Entrepreneurship

Abstract

We develop a conceptual framework that links local social capital with different types of business start-ups (necessity and opportunity, low- and high-growth ambition, exporting and not, innovative and less innovative). We empirically test these relationships, utilising UK data, between 2018 and 2021. We gain unique insights at a granular spatial level on the diverse impact of local social capital on types of entrepreneurial activity. Our findings show that local social capital may be important in supporting less ambitious forms of entrepreneurship, particularly during crises.