Authors: Islam M.F.
Publication: Yaşar University
Entrepreneurship is considered to be a strong pillar of business and economic life and its first stage constitutes an intention. Yet we have little knowledge about how such intention is socially determined through interactions and shared understandings. Keeping in view of that, my study aims to understand how entrepreneurial intention emerges as a combined effect of individual social capital and societal norms. Using the theory of planned behavior, it investigates how an individual’s social capital affects entrepreneurial intention and whether social norms as perceived by the person moderates this relationship. Representing different economic and societal contexts, three countries -Turkey, Pakistan and Germany- were chosen as the empirical research setting. Using data collected through the Global Entrepreneurship Monitor (GEM) and performing logistic regression analysis, I found that social capital dimensions of personally knowing an entrepreneur and social network opportunity perceptions facilitate the intention for entrepreneurship. The results also show that while perceived desirability and prestige of entrepreneurship in the society do not interact with social capital, media coverage does. Finally, the data reveals that necessity-based entrepreneurship is stronger than opportunity-based one as the entrepreneurial intention is encouraged more in Pakistan and Turkey than in Germany.