Social capital is valuable for entrepreneurs starting a business. Although many smallbusinesses are located at the entrepreneurs’ dwelling, little is known about entrepreneurs’ localties and their relevance for firm success. Distinguishing between local and non-local socialcapital, this contribution looks at the following:(1) The availability of local social capital(2) The relation between social capital and local social capital, and characteristics of firms and entrepreneurs(3) The relation between social capital and local social capital and firm performance.Analysing data from the Survey of the Social Networks of Entrepreneurs, which contains informationon entrepreneurs and their networks in 141 Dutch neighbourhoods, this study finds a positiverelation between social capital and firm performance.
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