The Effect of Human and Social Capital on Entrepreneurial Activities: A Case Study of Iran and Implications

• Published in: Entrepreneurship and Sustainability Issues 2019-03, Vol.6 (3), p.1393-1403
• Main Authors: Chitsaz, Ehsan, Tajpour, Mehdi, Hosseini, Elahe, Khorram, Hengameh, Zorrieh, Saloomeh
• Format: Article
• Language: English
• Subjects: Entrepreneurs; Entrepreneurship; Social capital
• ISSN: 2345-0282; 2345-0282
• DOI: 10.9770/jesi.2019.6.3(24)

The present study examined two kinds of capital, human and social, on entrepreneurial activities in Hossein Abad Kalpoush Village, Golestan Province, Iran, using primary and secondary data. We used communicative, structural, and cognitive dimensions to evaluate social capital, while we focused on knowledge, skills, and self-efficacy to investigate human capital. Entrepreneurship development is a complex, long-term, and comprehensive procedure with a major role in the economic development of countries. It has turned into the most strategic and major tool for economic promotion in developed countries. Studies on entrepreneurship have proved that there is a correlation between the rate of entrepreneurship activities and national gross product in some countries. Consequently, it is always accompanied by an enhancement of national income and welfare. Entrepreneurship reveals the opportunities, threats, and weak and strong points of environments, including agriculture, by means of a novel methodology and policymaking in order to revolutionize them. This evolution is accompanied by the presentation of new ideas and methods to solve existing and future problems, thereby improving farmers’ economic conditions. The results of this study showed the significant effect of dimensions of human and social capital on entrepreneurial activities.