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Small Business Economics

, Volume 21, Issue 2, pp 77–113 | Cite as

Local Social Capital and Entrepreneurship

  • Hans Westlund
  • Roger Bolton
Article

Abstract

We aim to contribute to the analysis of the role that spacebound social capital plays in local/regional entrepreneurship. We compare social capital with other forms of capital. The conclusion is that in the main, social capital can be analyzed in the same way as other capital but it has some important special attributes. With these attributes as starting point we sketch an outline model of how the spatially-defined producer surplus and consumer surplus form a place surplus, and of the role played by social capital in the creation of the producer surplus. A "rereading" of Schumpeter shows that he was aware of several aspects of what we denominate entrepreneurship-inhibiting and facilitating aspects of social capital. Finally, we discuss some formal economic modeling approaches to the theoretical relationship between social capital and entrepreneurship.

Keywords

Social Capital Special Attribute Economic Modeling Industrial Organization Outline Model 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Kluwer Academic Publishers 2003

Authors and Affiliations

  • Hans Westlund
    • 1
  • Roger Bolton
    • 2
  1. 1.Swedish Institute for Growth Policy StudiesÖstersundSweden
  2. 2.Williams CollegeWilliamstownU.S.A.

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