Exploring the Interplay of Social Capital, Cognitive Biases, and Environmental Factors on Entrepreneurial Behavior in Albania

Abstract

Purpose: This research explores how social capital, cognitive biases, and environmental factors influence entrepreneurial behavior in Albania.
 
 Theoretical Framework: Grounded in the Albanian entrepreneurial context, the study examines the combined impact of social capital, cognitive biases, and environmental dynamics on entrepreneurial behavior.
 
 Design/Methodology/Approach: Utilizing surveys and interviews, this mixed-methods study employs statistical techniques including correlation, regression, and ANOVA to uncover intricate relationships.
 
 Findings: The study reveals a 25% engagement rate in entrepreneurial activities. Social capital, notably professional networks (60%), significantly supports entrepreneurship. Cognitive biases, particularly overconfidence, influence decision-making and entrepreneurial actions. Business environment perceptions are varied, revealing bureaucratic hurdles and limited funding as primary challenges. Positive influences include motivational factors like incentives and training. Cultural, social, and economic elements locally shape entrepreneurial behavior.
 
 Research, Practical & Social Implications: The research underscores the need to nurture social capital, address cognitive biases, and refine the business ecosystem for a stronger Albanian entrepreneurial landscape. Valuable for policymakers and entrepreneurs, these insights contribute to economic growth and innovation.
 
 Originality/Value: This study provides unique insights into Albania's entrepreneurial behavior nexus, contributing to both academic discourse and practical applications within the Albanian context.