Abstract

Purpose This study is to analyze the effect of entrepreneur’s social capital, which accumulates through entrepreneur’s external network, trust and shared vision among members of the start-up team on entrepreneurial intention and opportunity recognition at the nascent entrepreneurship stage. Methods For empirical analysis, successful entrepreneurs of smaller ventures were surveyed online A total of 253 samples were obtained and IBM AMOS 20 was used for statistical testing. Results First, external bridging social capital and internal bonding social capital directly influence nascent entrepreneurship, Second, nascent entrepreneur''s behaviors directly influences start-up performance, and it is to say that nascent entrepreneur''s behaviors, which is a process of entrepreneurial intention and opportunity recognition, influences start-up performance. Third, external bridging and internal bonding social capital have a significant impact on start-up performance mediated by nascent entrepreneur''s behaviors. Fourth, analysis of indirect effect of social capital revealed that external bridging social capital not only influences entrepreneurial intention and opportunity recognition but also the start-up performance significantly. Conclusion This study has provided theoretical grounds that support that preliminary or potential entrepreneurs can achieve successful entrepreneurship by recognizing the importance of social capital and overcoming the initial challenges of start-up such as lack of resources and anxiety about failure through strategic allocation of social capital.

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