Abstract

URBAN, B  and  SHAW, G. Social capital for business start-ups: perceptions of community support and motives. JCMAN [online]. 2010, vol.7, n.1, pp.492-510. ISSN 1815-7440.

This article builds on past research which indicates that entrepreneurial activity does not occur in a vacuum, but instead is rooted in cultural and social contexts, specifically within webs of community networks. Recognising the importance of the social capital for entrepreneurs, the purpose of this article is to provide descriptive evidence of community support perceptions and to interrogate motives for business start-ups. Following a literature review on social capital, entrepreneurship, community norms, and motives for business start-ups, a sample consisting of 180 respondents who currently own and manage a new business in a wide range of businesses were surveyed. Descriptive and inferential statistics were calculated and based on the sampling characteristics a distinct entrepreneurial profile emerges. The main finding of this article, in that significant differences are detected across race and language groups on motives for start-ups is important, since entrepreneurs act as catalysts of economic activity and the entrepreneurial history of a community is imperative. Central to strategic actions initiated by the South African government, is the broadening of community support programmes and the streamlining of support institutions.

Keywords : Business start-ups; entrepreneurship; community; norms; motives.

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