Abstract

We analyse the effects of social capital on growth aspirations of owners and managers of young businesses in a post-conflict environment of Bosnia and Herzegovina (BiH). Little attention is paid to entrepreneurship in such environments, where social capital may be both the most needed and the most fragile. We treat social capital as a multi-dimensional phenomenon, which enables us to bring together different aspects of socialisation emerging at the wider community and the local social neighbourhood level. Both may affect the entrepreneurs’ growth ambitions. We add to the literature by bringing together different dimensions of social capital - networks and trust - which have been treated separately in entrepreneurship research. We also argue that, in the post-conflict context, local ethnic diversity becomes an important indicator of social capital.

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